Dogecoin It started out as a meme, but is now Elon’s favorite blockchain. And he recently explained two of the reasons why.
Dogecoin was created to be the ultimate crypto meme, but the richest man in the world takes it very seriously.
The richest man in the world and CEO of Tesla, Elon Muskis a well-known supporter of Dogecoin, but in a recent interview on the Full Send Podcast he said that the Dogecoin Blockchain had much higher transactional capacity than Bitcoin.
He also noted that DOGE can currently be used not only to purchase merchandise at Tesla and SpaceX but as a means of payment in other large companies such as The Boring Companywhich offers underground transportation services in Las Vegas.
Dogecoin 1 – Bitcoin 0
Musk explained that Dogecoin transactions complete in 60 seconds, while bitcoin transactions take approximately 10 minutes to complete. For Musk, this is enough for the meme coin to be considered a better payment system. The fact that it has a happy community also seems to help:
“Mostly I am outspokenly supporting Doge, because I think Doge has the memes and the dogs and seems to have a sense of humor and doesn’t take himself too seriously. I think it’s actually weird, even though Doge was designed to be like this ridiculous joke coin, but Doge’s actual total transactional throughput capacity is much higher than Bitcoin.”
In addition, he emphasized that the inflationary factor of Dogecoinwhich allows the creation of 5 billion coins per year, may be better in the long term to establish its use as a transactional currency, far from Bitcoin and its maximum supply of 21 million BTC.
“The fact that five billion dollars are created every year is really good to use as a transactional currency.”
One of the downsides of deflation is that it encourages hoarding, as the real perceived value of the currency increases over time. This problem could affect the bitcoin economy in the future, considering that according to studies carried out in 2013 by the University of San Diego and George Mason University, more than 60% of all mined bitcoins have not been moved since 2018.
Musk and cryptocurrency scams
Another topic the billionaire discussed is the growing number of scams around cryptocurrencies. He warned that his Twitter account is “target of many scammers” due to its high interaction with his followers.
Elon Musk’s influence in the crypto community is more than proven; in fact, it is scientifically proven. A study by Dr. Lennart Ante for the Blockchain Research Lab revealed that the “Musk effect” is real. Whenever Elon Musk tweets about Dogecoin, he tends to drive Dogecoin prices up almost immediately.
And, in fact, the Tesla ads buying Bitcoin Y stopping its acceptance as a means of payment they marked the beginning of the most recent strong bullish and bearish trends for Bitcoin.
He also clarified that it has nothing to do with other meme coins like “Elon” and other Elon-themed cryptocurrencies ranging from Dogelon Mars to more creative names.
Thus, even though Musk supports two meme cryptocurrencies (Shiba Inu Y Dogecoin), he has no interest in any other cryptocurrency, whether inspired by him or any other breed of cute dogs.