Elon Musk, CEO of Tesla and SpaceX, has consistently supported dogecoin, One Cryptocurrency inspired by meme. He invested in it, along with bitcoin and ether, he said in October.
But for Musk, dogecoin has an edge over bitcoin and other cryptocurrencies: He considers dogecoin the best cryptocurrency to trade.
“Basically, bitcoin is not a good substitute for transactional currency,” Musk told Time Magazine after being voted Time’s Person of the Year 2021. “Although it was made as a silly joke, dogecoin is more suitable for transactions. “
“[T]He said that bitcoin transaction volume is low and cost per transaction is high. for transactions.
Dogecoin, on the other hand, is a currency that “incentivizes people to spend, rather than hoard as a store of value,” he said.
However, while bitcoin advocates would agree that Assets are a store of value, they also argue that it is designed to a healthy peer-to-peer financial system and can be used for transactions, citing situations like El Salvador legal tender for bitcoin.
And while Musk is clearly bullish on crypto, he doubt that it will replace fiat. “I’m not a huge fan of fiat currencies like a lot of people in the crypto world,” Musk tell Time.
However, according to Musk, “there are advantages with crypto over fiat money, in that, fiat money tends to be diluted by any given government. money supply.”
However, financial experts consider cryptocurrencies to be a volatile, risky, and speculative investment. In return, you should only invest what you can afford to lose.
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