Tesla CEO Elon Musk believes that Bitcoin is not that good for everyday payments as the meme-based cryptocurrency, Dogecoin. Musk compared the world’s largest cryptocurrency, Bitcoin, to DOGE in a Time Magazine interview shortly after being named Time’s 2021 Person of the Year. Elon Musk has a history of advocating for the meme-based cryptocurrency Dogecoin. The tech billionaire tweeted several times about the cryptocurrency, causing its price to soar.
“Dogecoin is better for transactions.”
“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 transaction flow that you do with Dogecoin, like transactions per day, is much higher potential than Bitcoin,” Musk said. He emphasized 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. “The transaction volume of Bitcoin is low, and the cost per transaction is high,” Musk noted.
— TIME (@TIME) December 13, 2021
Dogecoin is not that good as a store of value.
Musk also acknowledged that Dogecoin is not that good as a store of value, noting that the cryptocurrency is “slightly inflationary.” However, this “encourages people to spend, rather than sort of hoard as a store of value,” he stated. Bitcoin, the world’s most-valued cryptocurrency so far, was launched back in 2009 as a “peer-to-peer electronic cash system” with a limited total supply of 21 million bitcoins. In contrast, DOGE has an infinite supply after the coin switched to provide an uncapped supply after hitting a supply limit of 100 billion coins in mid-2015.