Time for Binance to Step Away from Twitter
Elon Musk's Twitter Revamp: A Potential Game-Changer for DOGE and Cryptocurrencies in General
DogeCoin Surges 10% Amidst X Payments Speculation, Resulting in $10M Loss for DOGE Futures Traders
However, Musk believes that dogecoin has an edge over bitcoin and other cryptocurrencies: he considers it to be the ideal cryptocurrency for trading.
"Bitcoin is fundamentally not an acceptable alternative for transactional cash," Musk said after being selected Time's Person of the Year for 2021. "Dogecoin is better suited for transactions, even if it was intended as a joke."
′′[B]itcoin's transaction volume is limited, and the cost per transaction is expensive," he explained. Musk went on to say that bitcoin is better suited as a store of wealth, which is why investors prefer to keep it rather than sell it or use it for transactions.
Dogecoin, on the other hand, is a cryptocurrency that "encourages individuals to spend rather than hoard as a store of value," according to him.
While advocates of bitcoin acknowledge that the commodity is a store of value, they also contend that it is meant to be a sound peer-to-peer financial system that can be used for transactions, citing examples such as El Salvador's adoption of bitcoin as legal money.
Despite Musk's enthusiasm for bitcoin, he does not believe it will eventually replace fiat currency. Musk told Time, "I'm not a major hater of fiat currency as many in the crypto world are."
"There are advantages with crypto relative to fiat currency," Musk says, "in that fiat currency tends to get diluted by whichever government it is." With the depletion of the money supply, it ends up being a pernicious tax on individuals, especially those who have cash reserves."
Financial professionals, on the other hand, consider bitcoin to be a volatile, dangerous, and speculative investment. As a result, it's advised that you only invest what you can afford to lose.
