The memecoin Dogecoin, which was created as a joke, doesn’t look like a joke to the richest man on the planet, Elon Musk. The major DOGE supporter Musk has recently reiterated that he would always prefer Dogecoin over Bitcoin for day-to-day transactions.
During an interview on the Full Send Podcast, Tesla CEO said that the DOGE blockchain has much more transactional capacity than BTC.
He also emphasized that DOGE is currently accepted as payment at other big businesses, such as The Boring Company, which provides subway transit services in Las Vegas, in addition to Tesla and SpaceX.
Dogecoin vs. Bitcoin
Musk noted that while bitcoin transactions take around 10 minutes to complete, Dogecoin transactions are completed in just 60 seconds. According to Musk, this justifies the meme coin as a superior form of payment. He stated:
“I think actually weirdly, even though Dogecoin was just designed to be like this ridiculous joke currency, the actual total transactional throughput capability of Doge is much higher than bitcoin.”
In comparison to Bitcoin, which has a maximum supply of 21 million BTC, Dogecoin’s inflationary component, which permits 5 billion coins to be minted yearly, may be preferable in the long run for establishing its use as a transactional currency, according to Musk.
“The fact that there’s five billion Doge created every year is actually good for using it as a transactional currency.”
As the apparent actual worth of the currency rises over time, one drawback of deflation is that it encourages hoarding. Given that over 60% of all bitcoin mined have not changed hands since 2018, studies conducted in 2013 by the University of San Diego and George Mason University suggest that this issue could have an impact on the bitcoin economy over time.
This is not the first time when Elon Musk is taking the side of DOGE. Before this, Around a month ago, Musk-owned The Boring company announced that it would accept Dogecoin as a payment medium, as TheCoinRise reported.