During an interview with Time Magazine, CEO of Tesla Elon Musk continued to promote DOGE after being named Time’s 2021 Person of the Year.
Elon Musk feels that BTC isn’t that good for daily payments as Dogecoin (DOGE). He said:
“Bitcoin is not a good substitute for transactional currency. Even though it was created as a silly joke, Dogecoin is better suited for transactions. The total transaction flow that you do with Dogecoin, like transactions per day, is much higher potential than Bitcoin.”
He also stressed that Bitcoin is more useful as a store of value, and this is why its investors prefer holding it rather than using it for payments or selling it. He added that “the transaction volume of Bitcoin is low, and the cost per transaction is high.”
However, Musk noted that Doge isn’t that great as a store of value and that the cryptocurrency is “slightly inflationary.” However, this feature “encourages people to spend, rather than sort of hoard as a store of value.”
Although Musk criticized Bitcoin as a payment tool, early in 2021, Tesla (his electric vehicle firm) adopted BTC as a payment method. They eventually dropped BTC as a payment option due to the company’s concerns concerning the “rapidly increasing use of fossil fuels for Bitcoin mining and transactions.”
However, Tesla still holds a large amount of Bitcoin after buying $1.5 billion worth of Bitcoin in February. Some global companies like Twitter have accepted BTC as a payment option by implementing the Lightning Network. This helps in decreasing transaction costs.
DOGE has become one of the best-performing cryptocurrencies this year. Majority of this has to do with the active endorsement of the crypto by Musk on social media.
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Wilson is a successful crypto analyst and content writer with many years of writing experience in finance and blockchain fields. His interests are in crypto-asset research and technical analysis, Fintech, Blockchain, DeFi, NFTs, and Personal Finance.