Dogecoin is better than Bitcoin for payments, says Elon Musk

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

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

Musk compared the world’s largest cryptocurrency, Bitcoin, to DOGE in an interview with Time Magazine shortly after being appointed 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, has been launched in 2009 as a “peer-to-peer electronic payment system” with a limited total supply of 21 million BTC. In contrast, DOGE has infinite supply after switching the room to provide uncapped supply after reach a supply limit of 100 billion pieces in mid-2015.

Some industry figures such as the CEO of Ripple 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 business, Tesla briefly embraced BTC as a payment method earlier this year. The official reason for abandonment of payment option were the company’s concerns about “the increasing use of fossil fuels for Bitcoin mining and transactions.” Tesla again continues to hold a significant amount of Bitcoin to his balance sheet after purchase of $ 1.5 billion in BTC in February.

A number of global companies like Twitter have actively adopted BTC as a payment option by implementing the Lightning Network to Reduce Transaction Costs.

Related: Bitcoin transaction fees have fallen by more than 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 the amounts at $ 31 billion, or 3.5% of its market cap, according to data from CoinGecko. Dogecoin’s daily transactions are value $ 970 million, or 4.6% of its market capitalization.

DOGE has become one of the best performing cryptocurrencies in 2021, much of which was apparently associated with Musk’s active endorsement on social networks.