Dogecoin is better than Bitcoin for payments, says Elon Musk

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Tesla CEO Elon Musk believes Bitcoin (BTC) is not as good for daily payments as the memes-based Dogecoin (DOGE) cryptocurrency.

Musk compared the world’s largest cryptocurrency, Bitcoin, to DOGE in an interview with Time Magazine shortly after being named Time Personality of the Year 2021.

“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 flow of transactions you make with Dogecoin, like trades per day, is a much higher potential than Bitcoin, ”Musk said.

The Tesla CEO pointed out that Bitcoin is more suitable as a store of value, which is why its investors prefer to hold it rather than sell it or use it for payments. “Bitcoin’s transaction volume is low and the cost per transaction is high,” noted Musk.

On the other hand, Dogecoin is not such a good store of value, Musk hinted, noting that the cryptocurrency is “slightly inflationary.” However, it “encourages people to spend, rather than amassing a store of value,” he said.

Bitcoin, the world’s most valuable cryptocurrency to date, was launched in 2009 as a “peer-to-peer electronic payment system” with a limited total supply of 21 million BTC. In contrast, DOGE has an infinite supply after the coin switched to providing an uncapped supply after hitting a supply limit of 100 billion coins in mid-2015.

Some industry figures, such as Ripple CEO Brad Garlinghouse, have lambasted Dogecoin for its alleged “inflationary momentum” and unlimited supply.

Although Musk has criticized Bitcoin as a payment tool, his electric vehicle company, Tesla, briefly adopted BTC as a payment method earlier this year. The official reason for dropping the payment option was the company’s concerns about “the increasing use of fossil fuels for Bitcoin mining and transactions.” Tesla continues to hold a significant amount of Bitcoin on its balance sheet after buying $ 1.5 billion worth of BTC in February.

A number of global companies like Twitter have actively embraced BTC as a payment option by implementing the Lightning Network to reduce transaction costs.

Related: Bitcoin Transaction Fees Down Over 50% This Year

Dogecoin doesn’t appear to have much larger transaction volume than Bitcoin, according to the channel’s data. At the time of writing, Bitcoin’s daily trading volume stands at $ 31 billion, or 3.5% of its market cap, according to data from CoinGecko. Dogecoin’s daily trades are worth $ 970 million, or 4.6% of its market cap.

DOGE became one of the top performing cryptocurrencies in 2021, much of which was apparently associated with Musk’s active endorsement on social media.

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