Elon Musk Explains Why He Prefers Dogecoin Over Ethereum, Cardano, And Other Cryptocurrencies
The Tesla owner gives his reasons for preferring the meme crypto
Elon Musk, the world's second-richest person, thinks that Dogecoin is much better than other cryptocurrencies, including Ethereum 2.0, Bitcoin, and Cardano. Replying to a tweet on his tweeter address a day ago, when asked why he prefers Doge to other coins that are trying to scale and with much lower fees, the Tesla boss claimed that Doge is better than others because it has dogs and memes, whereas the others do not have. While this reply is on a light note, Musk has deeper-seated reasons for choosing Doge over other coins or cryptocurrencies.
His response on Twitter was a part of his post calling on developers to continue working on Dogecoin to make it not just a meme coin, but a serious cryptocurrency to rival others in this market. In a recent review on the Dogecoin network, there seems to be very minimal activity in recent years.
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Even then, Dogecoin developer Ross Nicholl said recently in an interview with Decrypt that Musk has been giving developers valuable advice on how they can transform Dogecoin from its current status of a joke coin to an actual utility. Nicholl continues to say that Musk has helped improve the frequency of transactions on the Dogecoin platform, but his vision could be a long short rather than the next step that he intends it to be.
Nicholl contends that they need to have a well laid down plan that will require decisive steps ‘great, but we need to make a path from A-Z – it’s not the next step.’ He says it will be a long way off before they can announce any developments. His statement seems to contradict Musk’s plan to have the joke coin up and going.
Musk seems to have mixed reactions concerning the meme coin. In an interview with a TMZ reporter, when asked if he considers Dogecoin the next significant digital currency for the world, he turns the question around, asking the reporter what he wants. The reporter claims that he has high hopes for the coin, but Musk waters it down, saying that he thinks the people’s will be the ultimate determinant.
On further pressing on whether he (Elon Musk) sees any problem with Dogecoin considering its unlimited supply, he confirms that there could be an issue and even goes ahead to caution the reporter not to invest his life savings in cryptocurrency. He, however, affirms that Dogecoin is an excellent asset to speculate on and that it has a good chance of becoming the currency of the future in the world. Still, he insists that no one should take too much of a risk investing in cryptocurrency.
Despite giving mixed signals concerning Dogecoin, he still contends that it is a much better coin than other cryptocurrencies. While comparing it to Bitcoin, Musk thinks that Bitcoin is not as decentralized as its developers consider it to be. He brings forth the issue of environmental concerns of Bitcoin mining among the reasons he is against Bitcoin and hints at Tesla selling its Bitcoin holdings in the coming quarter. The company has already stopped accepting Bitcoin as payment for its motor vehicles.
On centralization, Musk claimed that Bitcoin is highly centralized, considering that only a few big mining companies control the production and supply of this coin. Musk was replying to a post claiming that Dogecoin is highly centralized.
Still, on the issue of centralization, Bitcoin investor Michael Saylor announced just recently that he had organized a meeting with Musk and the North American Bitcoin miners to discuss the issue of reducing the carbon footprint of bitcoin mining to the atmosphere. For this environmental concern, Musk has been portraying Bitcoin in a negative light and even stopped receiving the cryptocurrency as a means of payment.
The issue here though was about having a council of Bitcoin miners. The cryptocurrency community took this meeting with a pinch of salt asking how the Bitcoin network will now claim to be decentralized if there is an elite council to determine the production and control, and probably the supply of this coin.
This community fears that such moves will only lead to centralization of the network. It goes against the original idea of having cryptocurrency in the first place. However, the investor has brought this to light saying that it is a positive move towards promoting better energy usage and protecting the environment.
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Even after being part of this meeting, Musk is still considering accepting other cryptocurrencies as a means of paying for Tesla motor vehicles. Dogecoin that utilizes less than 1% of Bitcoin’s energy per transaction, is among the top contenders.
For good reasons, the meme coin is the front runner to replace Bitcoin as the crypto Musk will accept for car Tesla car purchases. Compared to its predecessor Bitcoin, Dogecoin has 10X higher block time and size, and the cost of transactions on its network is 100X times cheaper than those on the Bitcoin network.
Musk has noted these aspects in his twitter dialogue and says that Dogecoin wins hands down when it comes down to selecting between it and Bitcoin. Musk acknowledges that low transaction costs and faster transaction speeds that translate to more finished transactions are essential factors to consider when choosing the world's future cryptocurrency.
While it does not seem like a significant factor to consider, Musk also thinks it is incredible, according to his tweet, the idea of varying dogecoin fees based on the moon’s phases. It is not very clear why Musk thinks that this idea is fantastic, but it has helped hype and increase this coin’s value. So far, the coin has soared an impressive 12,000% in the last year. With all the community support, social media influencers, and the billionaires behind this coin, the future is indeed bright for this meme coin.
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