Elon Musk is undoubtedly the most popular Dogecoin (DOGE) fan, having vocally and entrepreneurly helped the memecoin on various instances. The world’s richest person has often said that DOGE is his favorite cryptocurrency, and has gone as far as to enable DOGE payments in several business ventures, such as Tesla and SpaceX merchandise. However, Elon Musk has also stated that Dogecoin (DOGE) makes for a better currency than Bitcoin (BTC). Let’s discuss why he believes so, and if there is any merit to his beliefs.
Why Is Dogecoin A Better Currency Than Bitcoin According To Elon Musk?
In a podcast episode with Lex Friedman, Musk revealed why he things Dogecoin (DOGE) functions better than Bitcoin (BTC) as a currency. Firstly, Musk highlights that DOGE has much higher transaction volume than BTC. Not only that, Musk points out that the cost of transacting on DOGE is cheaper than BTC.
Moreover, Musk believes that Bitcoin’s (BTC) deflationary model poses challenges to using it as a currency, while Dogecoin (DOGE) has an inflationary model. He states, “there is some value to having a linear increase in the amount of currency.” Musk clarifies, “If a currency is expected to increase in value over time, there is reluctance to spend it.“
Is Musk Right?
Musk’s outlook on Dogecoin (DOGE) being a better currency than Bitcoin (BTC) may have some merits. His argument is further strengthened by the SEC and CFTC’s views on crypto assets. The two financial regulators stated that Bitcoin (BTC) is a “digital commodity,” an asset whose value is expected to grow over time.
Also Read: Did Dogecoin Admit Elon Musk Is Its Secret Creator?
On the other hand, the SEC and CFTC classified memecoins, such as Dogecoin (DOGE), as “digital collectibles.” The value of digital collectibles is not expected to grow over time.
Therefore, going by Musk’s viewpoint, using Dogecoin (DOGE) as a currency may have mroe benefits than Bitcoin (BTC).
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