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- Dogecoin could be a better payments currency than Bitcoin as per Elon Musk
- Tesla CEO compared the assets in the Time Magazine after being the biggest influencer of the year
- Musk hinted that DOGE is not as good as a store of value, as the crypto coin is slightly inflationary
Dogecoin, the meme-based cryptocurrency has seen tremendous growth since the beginning of this amid the WallStreetBets frenzy. The coin began to attract mainstream attention following the wordings of Elon Musk, the CEO of Tesla and SpaceX, who has been recently cherished as the Time’s 2021 person of the year. Notably, Musk has continued to promote the meme-coin, as he believes that Bitcoin is not that good for day-to-day payments in comparison to DOGE. Indeed, the Tesla CEO compared the assets in a Time Magazine after being the biggest influencer of the year.
Dogecoin is better suited for transactions
According to Musk, although DOGE has been created as a silly joke back in 2013, it is better suited for transactions made on a daily basis. On the other hand, he believes that Bitcoin is not a good substitute for such activities. In the Time Magazine, Musk also highlighted that the total transaction flow of Dogecoin has much higher potential than BTC. BTC’s transaction volume is low and the cost of the asset is high.
DOGE is not a store of value
Furthermore, the Tesla CEO also highlighted that the flagship cryptocurrency is more suitable as a store of value. Hence, investors prefer to hold it rather than selling it or use it for payments. Simultaneously, Musk also hinted that DOGE is not as good as a store of value, as the crypto coin is slightly inflationary. Hence, the factors help encourage users to spend Dogecoin, rather than sort of hoard as a store of value.
BTC vs DOGE
Bitcoin emerged back in 2009 as the first cryptocurrency with a limited supply cap of 21 million. On the other hand, Dogecoin has an infinite supply after the coin switched to offer an uncapped supply after hitting a supply limit of 100 billion coins in mid-2015. Following the scenario, several industry leaders including Brad Garlinghouse, the CEO of Ripple, have blasted the meme-coin for its alleged inflationary dynamics.
Besides, it is also worth noting that although the Tesla CEO criticizes BTC as a payment tool, his electric vehicle firm has briefly adopted this method earlier this year. Although Tesla dropped the feature, it is still holding a significant amount of the asset on its balance sheet.
According to some on-chain data, we have observed that DOGE doesn’t appear to have much bigger transactional volume than BTC. At press time, the coin designed by Satoshi Nakamoto has a daily transaction volume of $31 billion which is 3.5% of its total market cap. On the other hand, DOGE sees a daily transaction volume of $970 million which is more than 4.5% of its market cap.
Hence, Dogecoin has emerged as one of the top performing assets of the year. Notably, much of the growth of the digital asset is associated with Musk’s active influence on social platforms.
