Dogecoin is better than Bitcoin for payments, Elon Musk declares

Tesla CEO Elon Musk believes Bitcoin (BTC), while it is a good cryptocurrency for daily payments, isn’t as useful as the meme-based cryptocurrency Dogecoin(DOGE).

Musk, shortly after being named Time Magazine’s 2021 Person Of The Year, compared Bitcoin to DOGE in an interview with Time Magazine.

“Bitcoin cannot be used as a substitute for transactional currencies. Dogecoin, even though it was made as a joke, is more suited to transactions. Musk stated that Dogecoin’s total transaction flow, such as transactions per day is more than Bitcoin.

The Tesla CEO stressed that Bitcoin is better as a store-of-value, and why investors prefer to keep it instead of selling it or using it for payments. Musk stated that Bitcoin’s transaction volume is low and that it is expensive per transaction.

Musk suggested that Dogecoin was not a good store of value. However, Musk said that this encourages people to spend and not hoard the cryptocurrency.

Bitcoin is the most valuable cryptocurrency in the world. It was originally launched as an “electronic cash system” that allowed peer-to-peer transactions. The total supply of 21,000,000 bitcoins was limited to 21 million. DOGE, on the other hand, has an inexhaustible supply because it switched to an unlimited supply after hitting a limit of 100 million coins in mid-2015.

Ripple CEO Brad Garlinghouse has blasted Doge’s alleged “inflationary dynamic” and unending supply.

Musk has repeatedly criticized Bitcoin as a payment option, but Tesla, his electric vehicle company, briefly adopted BTC earlier in the year. Officially, the company dropped the payment option due to concerns about the “rapidly increasing usage of fossil fuels for Bitcoin mine and transactions.” Tesla continues to hold a substantial amount of Bitcoin in its balance sheet despite having purchased $1.5 billion in BTC in February.

Twitter is one of many global companies that have adopted Bitcoin as a payment option. They implemented the Lightning Network to reduce transaction costs.

Related: Bitcoin transaction fees down by more than 50% in 2018

According to on-chain data, Dogecoin does not appear to have a greater transaction volume than Bitcoin. According to CoinGecko data, Bitcoin’s daily transaction volume is $31 billion at the time of writing. This amounts to 3.5% of its market capitalization. Dogecoin’s daily transactions amount to $970 million or 4.6% of its total market capital.

DOGE emerged as the most popular cryptocurrency in 2021. This was largely due to Musk’s active endorsement via social media.