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Why Billionaire Elon Musk Deems Dogecoin More Preferable than Bitcoin

Source: CNBC

Billionaire and Tesla CEO Elon Musk has recapitulated the edge of Dogecoin over Bitcoin as transaction currency. Musk said that the transactions held by Dogecoin everyday have more potential than Bitcoin’s. 

Time Magazine dubbed him “Person of the Year for 2021,” and he said his statement on Dogecoin in an interview with them. With the outpouring influence he has pulled this year, it comes as no surprise that he would receive this award. 

Carefully explaining the reasons for his Dogecoin transactions preference, Musk elaborated that he assesses for Bitcoin, the transaction cost of the network is high while its transaction volume is low. 

As opposed to Dogecoin, which is more convenient at transacting as the transactions that the network manipulates are significantly more than Bitcoin’s. 

In addition, he elucidates that as far as the network’s function is concerned, the meme coin’s inflationary token issue is rather acceptable. His explanation being that Dogecoin’s inflation is a fixed figure and not of a percentage quantity, meaning that the percentage inflation of the meme coin will gradually decrease. 

“It [Dogecoin] is slightly inflationary,” Musk stated. “And that is actually good because it encourages people to spend, rather than to board it as a store of value.” 

Musk has conveyed identical sensibility about Dogecoin on various instances, like when he was a part of the board during the B-Word conference with Jack Dorsey, former Twitter CEO, and Cathie Wood, Ark Invest’s CEO. 

Musk receiving Time Magazine’s Person of the Year award is justified according to numerous people. This is due to his reputable status of being influential and scaling into the richest man in the world. Tesla, Musk’s car company, heightened to more than $1 trillion in value.

Opinions expressed by Coin Week contributors are their own.