If you are also a crypto lover, you must know how the market’s ups and downs are affected by one tweet or an interview with Elon Musk. His favourable behaviour for cryptocurrencies always motivates investors to trade more. The prices of different cryptocurrencies are hikes at breakneck speed whenever Musk tweets. He is well known for his cryptocurrency endorsements.
Recently, in an interview with Time, Tesla and SpaceX chief told his observations about the different suitability of cryptocurrencies. He compared Dogecoin and Bitcoin and said, “Even though it was created as a silly joke, Dogecoin is better suited for transactions. The total transaction flow you do with Dogecoin transactions per day has a much higher potential than Bitcoin.”
Why is Dogecoin better than Bitcoin? Explained by Elon Musk.
Musk told the magazine Time, “The transaction value of Bitcoin is low, and the cost per transaction is high. At least at a space level, it is suitable as a store of value. But fundamentally, Bitcoin is not a good substitute for transactional currency.”
Well, Dogecoin has always been treated as a silly joke to the industry. Since Bitcoin prices are so high to purchase by low budget investors, Dogecoin became a substitute for these highly-priced cryptocurrencies.
According to Musk, Dogecoin can be better suited for transactions; shall we consider it a hint of accepting cryptocurrencies as payment for a purchase? Earlier, Elon Musk has experimented with Bitcoin to take it as a payment mechanism, but he drops the idea after a fall in its prices.
India has also been much affected by his tweets, as we can see that we have 10 crores of investors in the cryptocurrency market, which is much higher than investors in the stock market.
Some countries are looking forward to legalising cryptocurrency and allowing it as a medium of exchange. One of the most preferred cryptocurrencies is Bitcoin, or we can say it was. Musk observations are driving the market crazy; after his statement, the prices of Dogecoin has risen rapidly it’s currently up over 18%.