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Elon Musk Tells TIME Magazine Why Dogecoin is Better than Bitcoin for Payments -Breaking

by Mike Robinson

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TIME Magazine Interview: Elon Musk explains why Dogecoin for payments is better than Bitcoin

On Dec. 13, TIME magazine named CEO of Tesla/SpaceX — Elon Musk — as its 2021 Person of the Year. During a recorded interview with Musk that TIME posted to its Twitter (NYSE:) channel as part of its Person of the Year announcement, the world’s richest person explained why he believes is better than in some regards.

Before we examine the self-proclaimed “DogeFather’s” fixation with meme tokens, we should first examine what money does. To be useful, fiat money or cryptocurrencies must be capable of performing three main functions. It’s generally accepted that currencies address the following three functions:

  • Unité de account is a measure stick to help you compare the prices of different services or goods.
  • Medium for exchangeAccepted method of payment to settle debts or purchase goods
  • Value storeInherent ability to pay a particular asset in the short and long term.

    • With that as context, Elon Musk — who also co-founded PayPal (NASDAQ:) — believes that Dogecoin is better than Bitcoin in at least one of those baseline currency criteria as shared in these transcribed quotes from the Person of the Year interview.

    “My understanding of the money system, at a fundamental level of how it actually works — the detailed mechanics of it — I think there are very few people who understand it better than me. Bitcoin is an example of this and the main mover. [the crypto space]Although the Bitcoin transaction volume is small and the transaction cost per transaction high, it is highly transactional. The base Bitcoin level is sufficient to be used as a storage of value. But fundamentally Bitcoin is not a good substitute for transactional currency.”

    Musk, however, believes Dogecoin can be widely used for exchange.

    “Even though it was created as a silly joke, Dogecoin is better suited for transactions. The total transaction flow — transactions per day — that you can do with Dogecoin has much higher potential than Bitcoin. It [Dogecoin]This is slightly inflationary but it’s a fixed percentage and not an actual number. This means its inflation percentage will decrease over time. That’s actually good because it encourages people to spend it rather than hoard [Dogecoin] as a store of value.”

    Tesla (NASDAQ) holds the number two most Bitcoins held by any corporation. It is believed to be 38,300 coins. Musk also flipped flopped earlier in the year over whether Tesla would accept Bitcoin for Tesla eVehicles.

    Bitcoin’s initial rejection led to a half-million dollar decline. Ironically, his own mercurial social media actions have both hurt and helped Tesla’s Bitcoin holdings this year. Perhaps someone should tell the combo-world’s richest person and Person of the Year that silence is golden.

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