Tesla billionaire Elon Musk, who has repeatedly supported Dogecoin versus Bitcoin, Ethereum and other cryptocurrencies in the past few months, has once again opted for the meme-based cryptocurrency.
Musk, Tesla’s self-proclaimed technoking, who was once elected CEO of Dogecoin in a winking Twitter poll, warned of limitations he sees with Bitcoin and Ethereum and branded them as “slow” with “high” costs.
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Tesla billionaire Elon Musk has accepted “joke” Bitcoin and Ethereum rival Dogecoin as favorite projects … [+]
“There are merits [in my opinion] Doge, maximizing base layer transaction rate and minimizing transaction costs, with exchanges acting as the de facto secondary layer, “Musk said of Twitter, replying to Dogecoin investor and YouTuber Matt Wallace.
“[Bitcoin and ethereum] pursue a multi-tier transaction system, but the base tier transaction rate is slow and transaction costs are high, “added Musk.
Hopefully, Bitcoin will be able to resolve some of its scaling issues via its payments-centric lightning network and a recent upgrade called taproot, while Etheruem, the second largest cryptocurrency after Bitcoin, is in the middle of a long-awaited upgrade from which is expected not to be completed for years.
Musk responded to a tweet from Wallace claiming “the Dogecoin update is coming soon” and that it will “perfectly position Doge to become one of the most widely used currencies in the world”.
In May, Musk proposed a Dogecoin upgrade which he claimed was “needed”. [for dogecoin] to become the currency of the earth “and to beat Bitcoin” mind-bogly.
Dogecoin price has gone up this year, initially on the Meme stock wave back in January, but later an arbitrary community has emerged, somewhat led by Musk, who envision it will eventually be able to compete with Bitcoin and Ethereum.
Musk, whose disrespectful stance toward bitcoin and cryptocurrencies on Twitter has alienated much of the bitcoin community, previously said that any of his Dogecoin-related comments shouldn’t be taken seriously, but has since stepped up his support for it – and has been challenging and encouraging developer support promised to bring a “literal Dogecoin to the literal moon” through his rocket company SpaceX.
Tesla continues to hold the more than $ 1 billion worth of bitcoins it bought earlier this year – though that investment is now viewed as underwater – but Musk has also stated that he personally holds Dogecoin.
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Comments from Tesla and SpaceX CEO Elon Musk on Twitter did not raise the Dogecoin price … [+]
Dogecoin price, which is up over 4,000% year over year, has fallen sharply in recent weeks as fickle investors lost interest in Dogecoin in search of the next hot digital asset.
Dogecoin price didn’t move immediately after Musk’s latest Doge tweet, a noticeable difference from earlier this year when Musk’s early morning and night tweets regularly moved the market by double-digit percentages.
In the past month, Dogecoin price has lost around 30% as the sell-off accelerated over the past week, even as a new Tiger King branded cryptocurrency due to support from Wallace, who said last weekend he was buying the little-known Character.