Tesla CEO Elon Musk believes that DOGE is superior in fundamentals to any other cryptocurrencies he has ever encountered.
In a recent podcast hosted by Lex Fridman, billionaire Elon Musk stated that the Dogecoin cryptocurrency is fundamentally superior to anything he has ever seen.
Lex asks great questions https://t.co/TlyuEGoOVA
— Elon Musk (@elonmusk) December 28, 2021
“Bitcoin is Ridiculously Slow in 2021.”
In one part of the speech, Musk compared Bitcoin and Doge, stating that his choice was Dogecoin. CEO, Fridman; He reminded that compared to the world’s flagship crypto, Dogecoin has a higher transaction volume and a much lower transaction fee than BTC.
“You can’t use Bitcoin effectively for most things,” he commented, due to the very high transaction cost, adding that “you can’t even scale it to a higher volume.”
The head of Tesla and SpaceX has described Bitcoin’s transaction speed as “funny low” if you fast forward to 2021 or 10 years from now. But in the early days of the platform, back in 2008, when internet connections were much slower than they are now, the billionaire admitted that the small Bitcoin block size and long sync time made sense then.
“Reluctance to Spend Bitcoin”
Elon Musk believes that if a community expects a cryptocurrency to increase in value over a period of time due to its growing scarcity, there will certainly be a reluctance to spend it and people will prefer to “hodl” it.
That said, Musk is a bit of a crypto asset that has occurred over time. dilution (which refers to the decrease in the value of a single currency due to the creation of new tokens, or the market capitalization of a cryptocurrency protocol in general), believes that this currency is likely to be used as a regular payment method. There is more incentive to use it this way too. It was in this use case that Musk described Doge as “better than anything I’ve ever seen.”
Elon Musk on the Lex Fridman Podcast; “The Dogecoin cryptocurrency is “basically better than anything I have ever seen.”
on the @lexfridman podcast, @elonmusk says that #dogecoin #cryptocurrency is “fundamentally better than anything else I’ve seen, just by accident” $DOGE pic.twitter.com/10iITlcPoY
— 💸💸💸 (@itsALLrisky) December 28, 2021
Musk, in the interview he gave when he was announced as the Person of the Year by Time Magazine on December 13; He stated that Dogecoin is much more suitable for transactions than Bitcoin.
Is Doge Really Better For Tesla Than Bitcoin?
This spring, when Elon Musk surprised the crypto industry by halting Bitcoin payments for Tesla e-cars due to “environmental concerns,” many on Crypto Twitter pointed out that Doge is working on the same Proof-of-Work (PoW) consensus algorithm as BTC. This means that Doge mining consumes as much energy as BTC. In addition, Doge mining is also linked to the minting of Litecoin, another PoW cryptocurrency.
However, in December, Musk tweeted that Tesla plans to sell some products in exchange for Dogecoin as an experiment “to see how it will perform.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.