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Elon Musk Explains Why Dogecoin Is Better Than Bitcoin for Payments

By Aaron – Cryptocurrency Specialist - 29/12/2021

TIME magazine chose Elon Musk, the CEO of Tesla/SpaceX, as their Person of the Year for 2021 on Dec. 13. Musk outlined why he feels buying Dogecoin is superior to buying Bitcoin in certain ways during a taped conversation with TIME that was released to its Twitter feed as part of its Person of the Year announcement.

We should first take a look at what money does before we look at the self-proclaimed "DogeFather's" obsession with meme tokens and buying cryptocurrency. There are three major purposes that cold hard cash or hot digital funds must be able to address in order for fiat money and cryptocurrencies to be helpful to us, these include Unit of Account, Medium of Exchange and Store of value.

These three functions are widely acknowledged as being addressed by currencies. With that in mind, Elon Musk — who also co-founded PayPal — feels that Dogecoin outperforms Bitcoin in at least one of the baseline currency characteristics, as recorded from the Person of the Year interview.

“My understanding of the money system, at a fundamental level of how it actually works — the detailed mechanics of it — I think there are very few people who understand it better than me” Musk stated. He goes onto explain the differences in Bitcoin transaction volume compared to other networks, commenting that “cost per transaction is high” and that “fundamentally Bitcoin is not a good substitute for transactional currency.”

Referring to Dogecoin, “Even though it was created as a silly joke, Dogecoin is better suited for transactions. The total transaction flow — transactions per day — that you can do with Dogecoin has much higher potential than Bitcoin.”

Tesla is said to own the second-largest number of Bitcoins held by a firm, at 38,300 coins, after completing several large bitcoin purchases. Musk also went back and forth earlier this year on whether Tesla would accept Bitcoin as payment for Tesla e-vehicles. His first rejection of Bitcoin payments resulted in a 50% drop in the value of the cryptocurrency.

If you are looking to Buy and Sell Bitcoin, or simply learn more about digital assets, navigate our website or get in touch to speak with a member of our team about buying crypto!

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