Why Elon Musk Thinks Dogecoin Is Better For Transactions Than Bitcoin

Tesla Inc TSLA CEO Elon Musk was announced as the 2021 "Person of the Year" by Time magazine, with the staunch Dogecoin DOGE/USD-backer using the platform to flaunt the virtues of the dog-themed meme crypto.

Dogecoin Over Bitcoin: Excerpts from Time's interview with Musk showed the Tesla CEO thinks Dogecoin has a better transactional value than Bitcoin BTC/USD. The transaction volume of Bitcoin is low, while the cost of transaction is high, Musk said. At its base level, it may be suitable as a store value, he added.

Musk does not see Bitcoin as a good substitute for transactional currency. Dogecoin, though created as a joke, is better suited for transactions, the Tesla chief said. Musk clarified that the total transaction flow that can be done with Dogecoin is substantially more, for example, Dogecoin has a much higher potential than Bitcoin in terms of transactions per day.

Related Link: How to Buy Dogecoin

While conceding Dogecoind is slightly inflationary, Musk said the inflationary number is a fixed number as opposed to a percentage.

"That means over time its percentage actually decreases and that is actually good because it encourages people to spend and rather than hoard it as a store of value," Musk said.

Musk Isn't Huge "Fiat Hater": Musk also said he is not a huge hater of fiat currency. Cryptocurrencies hold a relative advantage over their fiat counterparts, as the latter tends to be diluted by governments, excerpts of the interview showed.

"It ends up being a pernicious tax on people, especially those who have cash savings with dilution of the money supply, Musk said.

Musk also went on to say he could go at length about the nature of money, thanks to the significant role he played in creating PayPal Holdings Inc PYPL.

"There are very few people that understand [the money system] better than me," he said.

But Musk failed in talking up Dogecoin as it continued to languish: Doge was down 7.83% at $0.1571, Monday afternoon at publication. Bitcoin was also retreating 6.29% to $46,833.28

Related Link: Here Are The Most-Discussed Cryptos On Twitter In November; Shiba Inu Beats Biggies Fair And Square

Image by Trever Gearhart from Pixabay