Elon Musk: Dogecoin is better for transactions than Bitcoin

Tue 14 Dec 2021 ▪ 13h05 ▪ 3 min read — by Mary Anderson

Tesla and SpaceX CEO Elon Musk told Time magazine that Bitcoin is good for the store of value but noted that Dogecoin is better for making transactions. 

Elon Musk spoke about the advantages of cryptocurrencies 

Time magazine named Elon Musk the Person of the Year for influencing life on Earth and possibly beyond. In an interview, the billionaire spoke about the advantages and disadvantages of cryptocurrencies. He expressed the opinion that Bitcoin will not be able to become a proper replacement for ordinary money. The volume of transactions with BTC is not so large, and users have to pay large fees for conducting transactions with Bitcoin. 

Musk noted that BTC and other crypto assets have many advantages in comparison with fiat currencies, the value of which is “weakened” by governments. Dilution of the money supply leads to the depreciation of long-term savings. Therefore, more and more investors consider Bitcoin a reliable means of saving. So, they invest in it for the purpose of long-term storage and not for sale or making payments. 

However, according to the CEO of Tesla, the DOGE coin has an advantage over Bitcoin and is better for making transactions, despite being a meme coin. 

“It is slightly inflationary but that inflationary number is a fixed number as opposed to a percentage. That means over time its percentage inflation actually decreases and that’s actually good because it encourages people to spend rather than sort of hoard it as a store of value,” Musk said.

Musk is a Dogecoin fan 

In October, Elon Musk tweeted that many Tesla and SpaceX employees own DOGE, even without being financial experts. Musk decided to support this cryptocurrency, as it has become popular.

Then, thanks to the billionaire’s comments, the DOGE rate rose to $0.2832. Now Musk’s tweets no longer have such a stunning effect on Dogecoin, as it happened in May. This spring, the CEO of Tesla called DOGE a promising cryptocurrency, and the coin rate jumped to $0.54.

This year Tesla saw an income of a trillion dollars (~£76 billion), and Musk’s net worth exceeded $300 billion (~£227 billion), which earned him the status of the richest man in the world.

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Mary Anderson

I am sure that crypto assets are a new type of economy. We are at the origins of the crypto revolution. Right now, it is worth studying what cryptocurrencies and the blockchain are in order to make the most of this knowledge and these skills in the future.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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