{"id":380804,"date":"2021-12-14T12:09:14","date_gmt":"2021-12-14T09:09:14","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/dogecoin-is-better-than-bitcoin-for-payments-elon-musk-declares\/"},"modified":"2021-12-14T12:09:14","modified_gmt":"2021-12-14T09:09:14","slug":"dogecoin-is-better-than-bitcoin-for-payments-elon-musk-declares","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/dogecoin-is-better-than-bitcoin-for-payments-elon-musk-declares\/","title":{"rendered":"# Dogecoin is better than Bitcoin for payments, Elon Musk declares"},"content":{"rendered":"

“# Dogecoin is better than Bitcoin for payments, Elon Musk declares <\/strong>”
\n<\/p>\n

Tesla CEO Elon Musk believes that Bitcoin (BTC) is not that good for everyday payments as the meme-based cryptocurrency, Dogecoin (DOGE).<\/p>\n

Musk compared<\/a> the world\u2019s largest cryptocurrency, Bitcoin, to DOGE in a Time Magazine interview shortly after being named<\/a> Time\u2019s 2021 Person of the Year.<\/p>\n

\u201cBitcoin is not a good substitute for transactional currency. Even though it was created as a silly joke, Dogecoin is better suited for transactions. The total transaction flow that you do with Dogecoin, like transactions per day, is much higher potential than Bitcoin,\u201d Musk said.<\/p>\n

Tesla CEO emphasized that Bitcoin is more suitable as a store of value, which is why its investors prefer to hold it rather than sell it or use it for payments. \u201cThe transaction volume of Bitcoin is low, and the cost per transaction is high,\u201d Musk noted.<\/p>\n

On the other hand, Dogecoin is not that good as a store of value, Musk hinted, noting that the cryptocurrency is \u201cslightly inflationary.\u201d However, this \u201cencourages people to spend, rather than sort of hoard as a store of value,\u201d he stated.<\/p>\n

Bitcoin, the world\u2019s most-valued cryptocurrency so far, was launched back in 2009 as a \u201cpeer-to-peer electronic cash system\u201d with a limited total supply of 21 million bitcoins. In contrast, DOGE has an infinite supply after the coin switched to provide an uncapp<\/a>ed supply after hitting a supply limit of 100 billion coins in mid-2015.<\/p>\n

Some industry figures like Ripple CEO Brad Garlinghouse have blasted Doge for its alleged \u201cinflationary dynamics\u201d and unlimited supply.<\/p>\n

Despite Musk criticizing Bitcoin as a payment tool, his electric vehicle firm Tesla briefly adopted BTC as a payment method earlier this year. The official reason for dropping the payment option were the company\u2019s concerns regarding the \u201crapidly increasing use of fossil fuels for Bitcoin mining and transactions.\u201d Tesla still continues holding a significant amount of Bitcoin on its balance sheet after purchasing $1.5 billion in BTC in February.<\/p>\n

A number of global companies like Twitter<\/a> have been actively adopting BTC as a payment option by implementing the Lightning Network to decrease transaction costs.<\/p>\n

Related: <\/em><\/strong>Bitcoin transaction fees are down by over 50% this year<\/em><\/strong><\/p>\n

Dogecoin doesn\u2019t appear to have a much bigger transactional volume than Bitcoin, according to on-chain data. At the time of writing, Bitcoin\u2019s daily transaction volume amounts<\/a> to $31 billion, or 3.5% of its market capitalization, according to data from CoinGecko. Dogecoin\u2019s daily transactions are worth<\/a> $970 million, or 4.6% of its market cap.<\/p>\n

DOGE has emerged as one of the top-performing cryptocurrencies in 2021, much of which was apparently associated with Musk\u2019s active endorsement on social media.<\/p>\n