Last Updated on 16/12/2021 by Ulka
Elon Musk, the billionaire and CEO of Tesla, believes that Dogecoin is a superior cryptocurrency for transactions than Bitcoin.
In a recent interview with Time magazine, Elon Musk, CEO of Tesla and SpaceX, stated that Dogecoin is a far better cryptocurrency in terms of daily transactions. “Bitcoin has a low transaction value and a high transaction cost. It is suitable as a value store at least on a spatial level. But, at its core, Bitcoin is not a good substitute for transactional currency,” he says, adding that, despite its origins as a joke, Dogecoin is more suited for transactions. “Dogecoin’s total transaction flow, measured in transactions per day, has a far higher potential than Bitcoin.” Dogecoin was founded in 2013 by software programmers Billy Markus and Jackson Palmer as a “fun” yet speedier alternative to Bitcoin. It was created as a spoof on the plethora of fraudulent cryptocurrency coins that had sprung up at the time, and it derives its name and emblem from a Shiba Inu meme that went widespread several years ago.
According to Coindesk, the Dogecoin transaction charge, or “gas fee,” is still quite modest, ranging around $0.65 (about Rs 50) each transaction, whereas a single transaction on the Bitcoin blockchain can cost more than $15. (Rs 1,149 approx.).
This comes after Musk said on Tuesday that Tesla, the electric car company, will accept Dogecoin for items on a trial basis.
In a tweet, he added, “Tesla will make some items buyable with Doge and see how it goes.”
Tesla sells clothes, belt buckles, tiny versions of its vehicles, a quad bike called the “Cyberquad” for kids, and a whistle called the “Cyberwhistle” based on its much-anticipated Cybertruck.
According to Reuters Dogecoin soared 24 percent to $0.195, according to Reuters.
Tesla CEO Elon Musk is a strong backer of Dogecoin. After a recent Twitter dispute between Musk and Binance CEO Changpeng Zhao, this became evident. Regarding the recent DOGE incident at cryptocurrency exchange Binance, the billionaire investor and creator of SpaceX expressed concern on behalf of Dogecoin holders. There were multiple erroneous dogecoin transactions as a result of the problem, with some users reporting that their accounts were frozen.
“What’s going on with your Doge customers?” Musk inquired of Zhao (CZ). “It sounds shady,” he adds. Meanwhile, Musk has promoted Dogecoin over Ethereum, claiming that DOGE can be used to make Decentralized Finance (DeFi) more accessible to the general public. DeFi systems are a blockchain-based type of finance that provides services without the use of financial intermediaries such as brokerages, exchanges, or banks. Users can keep custody of their Ethereum-based crypto assets on such sites.