Why Tesla’s Elon Musk thinks Dogecoin is better than Bitcoin for transactions

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Tesla CEO Elon Musk believes that while Dogecoin was created as a silly joke, it is much better suited for transactions than Bitcoin. In a recent interview with TIME magazine, after being named TIME Personality of the Year, he said, “Basically, Bitcoin is not a good substitute for transactional currency.

Musk said, “Bitcoin’s transaction value is low and the cost per transaction is high. At least in terms of space, it is suitable as a store of value. But fundamentally, Bitcoin is not a good substitute for transactional currency.

“The total flow of transactions you make with Dogecoin in transactions per day has a much higher potential than Bitcoin,” he added.

Musk has been a frequent supporter of meme currency and has helped increase its popularity dramatically through his tweets. Dogecoin had climbed over 20% earlier this week to over $ 0.21 after Musk announced that the electric car manufacturing company would start accepting it for various commodities it plans to sell. “Tesla will do some buyable stuff with Doge and see how it goes,” Musk tweeted.

However, he did not specify what commodity will be sold for dogecoins. Tesla sells many novelty items like belt buckles, miniature models of its vehicles. The company recently unveiled a limited edition “cyber whistle”, a miniature replica of the highly anticipated Cybertruck.

These items start at $ 50 and can go up to $ 1,900. According to data from Coinmarketcap, Dogecoin has grown almost 6,000% in the past year.

Bitcoin IRA Co-Founder said, “Elon Musk has been an advocate for the crypto community for many years. Its latest announcement will usher in a new era of commerce and pave the way for altcoins to expand their use case.

Musk has been supporting the transition from cryptocurrencies to the mainstream financial market for years. But when it comes to his favorite cryptocurrency, it has always been dogecoin.

Musk has 66 million Twitter followers and often uses his influence on the site to show support for his favorite cryptocurrency. A tweet from Musk can cause the prices of the memes-inspired crypto coin to skyrocket, and in some cases even drop, as he did when he called it a “fuss” when in his place. guest host in the comedy “Saturday Night Live” TV show in May.

(Edited by: Yashi Gupta)

First published: December 18, 2021, 10:31 AMIST

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