Elon Musk, the world’s richest man famous for prioritizing Dogecoin, a meme coin, over Bitcoin, has clarified his stance. Musk, who has been named Time Magazine’s Person of the Year, explained that Dogecoin is better suited for transactions.
Musk, who has a solid understanding of the money system as he “played a significant role in creating PayPal,” explained that “the transaction volume of bitcoin is low and the cost per transaction is high.”
The world’s richest man believes that these drawbacks make Bitcoin unsuitable for making payments. But, he adds that, at least at its base level, Bitcoin is suitable for “maybe a store of value.”
By contrast, Elon Musk opines that Dogecoin is better suited for transactions than the Bitcoin network, even though it was initially created as a silly joke. Musk also praised the tokenomics of the world’s biggest meme coin.
He explained that Dogecoin is slightly inflationary. However, the inflationary number of Dogecoin is a fixed number, as opposed to a percentage.
"That means over time, its percentage inflation actually decreases, and that's actually good because it encourages people to spend rather than sort of hoard it as a store of value."
On the Flipside
- Despite continual backing from Musk and other influencers, Dogecoin (DOGE) continues to underperform in the market. At the time of this writing, DOGE is currently trading at $0.1903, 74% less than its May 8th all-time high of $0.7376.
Why You Should Care
While it originally gained popularity and adoption as a meme coin, Dogecoin has been steadily adding utility to its ecosystem.