Elon Musk tells TIME Magazine why Dogecoin is better than Bitcoin for payments.
13th December, TIME The magazine named Elon Musk, CEO of Tesla / SpaceX, Person of the Year 2021. In a recorded interview with Musk TIME The richest man in the world, posted on his Twitter channel as part of the Person of the Year announcement, explained why he believes Dogecoin is better than Bitcoin in several ways.
Before we examine the self-proclaimed “DogeFather” fixation with meme tokens, we should first examine what makes money do. In order for fiat and crypto to be useful to us, there are three main functions that need to resolve cold cash or hot digital funds. It is generally accepted that currencies serve the following three functions:
- Units of batteryt: a measure of comparison for different goods or services.
- Medium of exchange: an accepted method of payment used to pay a debt or purchase goods.
- Save value: the inherent ability of a particular asset to maintain its solvency in the short and long term.
With this in mind, Elon Musk, who also co-founded PayPal, believes that Dogecoin is better than Bitcoin in at least one of the basic monetary criteria, as in these transcribed quotes from the Human Resources interview.
“From my understanding of the monetary system at a fundamental level of how it actually works – its detailed mechanics – I believe there are very few people who understand it better than I do. Bitcoin is an interesting example and the main driver behind it. [the crypto space], but Bitcoin’s transaction volume is low and the cost per transaction is high. It is basically suitable as a store of value. But basically Bitcoin is not a good substitute for transaction currency. “
However, Musk believes that Dogecoin is ideal to be a widely used method of exchange.
“Although it was made as a silly joke, Dogecoin is more suitable for transactions. The total flow of transactions – transactions per day – that you can do with Dogecoin is potentially much higher than with Bitcoin. It [Dogecoin] Slightly inflationary, but this inflation number is a fixed number, not a percentage. This means that the rate of inflation will decrease over time. This is really good because it encourages people to spend it instead of hoarding it. [Dogecoin] As a store of value. “
The Tesla Foundation holds the second largest amount of Bitcoin by any company, namely Report 38,300 Coins. Earlier this year, Musk also changed course on whether Tesla would accept Bitcoin as payment for Tesla electric cars.
His initial rejection of Bitcoin payments caused that cryptocurrency to drop by 50%. Ironically, its own commercial social media promotions hurt and helped Tesla’s Bitcoin holdings this year. Perhaps someone should tell the richest man in the world and the person of the year that silence is gold.