Dogecoin (DOGE) literally started a few years ago as a joke, but in the meantime some prominent persons within the crypto world even see the meme-coin as a competitor of bitcoin (BTC). One of those people is the richest man in the world Elon Musk.
Dogecoin vs. Bitcoin
During an episode of the Full Send Podcast, where Musk was recently a guest, he said that the Dogecoin network is much stronger than the Bitcoin network on certain points. For example, the Dogecoin network has a much higher transaction capacity. According to Musk, this means that dogecoin is basically better suited as a means of payment.
Some Musk companies, including Tesla and SpaceX, already offer customers the option to purchase merchandise using DOGE as a method of payment.
During the podcast, Musk explains that a transaction on the Dogecoin network can be completed within 60 seconds. This while a transaction on the Bitcoin network takes almost 10 minutes. This is reason enough for Elon Musk to argue that Dogecoin has a better payment system than Bitcoin.
“I mostly support Doge because I think Doge has the memes and dogs, has a sense of humor and doesn’t take himself too seriously. I think oddly enough, even though Doge is designed as a ridiculous ‘joke currency’, Doge’s actual total throughput is much higher than bitcoin’s.”
DOGE inflation
Today, inflation is a word that many investors have become quite averse to. The fact is that the Dogecoin network is also subject to strong annual inflation. At least 5 billion new DOGE tokens are added every year.
“The fact that five billion DOGE are added every year is actually good for using it as a transaction currency.”
According to Musk, however, this is not a disadvantage, but an advantage. Because so many extra tokens are added every year, the network is better suited as a means of payment. At network where there is hardly any inflationor even deflation, people are more likely to save their tokens rather than use them to make payments, Musk said.
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