Tesla CEO Elon Musk believes that Bitcoin (BTC) is not as good for daily payments as the meme-based cryptocurrency Dogecoin (DOGE).
Musk compared the world’s largest cryptocurrency, Bitcoin, to DOGE in an interview with Time magazine shortly after being named Person of the Year in 2021 by Time magazine.
“Bitcoin is not a good alternative to a transaction currency. Although Dogecoin was made as a stupid joke, it is best for transactions. The overall flow of transactions you make with Dogecoin, as well as daily transactions, has a much higher potential than bitcoin. , “said Musk.
Tesla’s CEO stressed that bitcoin is more suitable as a securities store, and therefore investors prefer to keep it instead of selling it or using it for payments. “Bitcoin transaction volume is low and transaction costs are high,” Musk said.
On the other hand, Dogecoin is not very good as a value stock, as Musk suggested, noting that the cryptocurrency is “slightly inflationary”. However, “it encourages people to use instead of saving as a value store,” he said.
Bitcoin, the most valuable cryptocurrency in the world today, was launched in 2009 as a “peer-to-peer electronic money system” with a total limited offer of 21 million BTC. On the other hand, DOGE has an unlimited supply after the coin exchange to provide an unlimited supply after reaching the supply limit of 100 billion coins in mid-2015.
Dogecoin has been criticized by some industry figures, such as Ripple CEO Brad Garlinghouse, for its supposed “inflation dynamics” and unlimited offerings.
Despite Musk’s criticism of bitcoin as a payment instrument, his electric car company Tesla briefly adopted BTC as a payment method earlier this year. The official reason for dropping the payment method was the company’s concerns about “rapidly growing use of fossil fuels for bitcoin mining and transactions”. Tesla still has a significant amount of bitcoin on the balance sheet after buying BTC for 1.5 billion dollars in February.
A number of global companies, such as Twitter, actively use BTC as a payment method through their Lightning Network implementation to reduce transaction costs.
Related: Bitcoin transaction fees fall over 50% this year
Judging by data within the network, Dogecoin does not have a significantly higher transaction volume than Bitcoin. At the time of writing, Bitcoin has a daily transaction volume of $ 31 billion, or 3.5% of market value, according to data from CoinGecko. Dogecoin’s daily transactions are $ 970 million, or 4.6% of market value.
DOGE has emerged as one of the best cryptocurrencies in 2021, many of which appear to have been linked to Musk’s active support on social media.