Initially created in December 2013, Dogecoin is a Memecoin and a payment system based on internet jokes. Contrary to its primary purpose, the crypto asset has found its way to the top by becoming Elon Musk’s favorite blockchain. Here are the two reasons why the world’s richest man prefers Dogecoin over Bitcoin.
In a recent interview on the Full Send Podcast the CEO of Tesla and the 51 year old Billionaire, Elon Musk, has announced his support for the famous Memecoin, DOGE, and said he prefers it over Bitcoin for it has a much greater transactional capacity.
Elon Musk has also added that Dogecoin can be used not only to buy merchandise at Tesla and SpaceX but also as a means of payment at other large companies such as The Boring Company, which offers subway transportation services in Las Vegas.
He has mentioned in the interview:
“I’m mainly supporting Doge frankly, because I think Doge has the memes and dogs and it seems to have a sense of humor and doesn’t take himself too seriously. I think actually weirdly even though Doge was just designed to be like this ridiculous joke currency, but the actual total transactional throughput capability of Doge is much higher than bitcoin.”
One of the main reasons mentioned by Musk for this preference is that transactions made by DOGE would take at most 60 seconds while the transaction time for those made with Bitcoin would reach 10 minutes in some cases to be completed.
Another reason for this is the inflationary nature of Dogecoin, creating 5 billion coins annually while the total supply of Bitcoin does not exceed 21 million BTC.
“The fact that there’s five billion dollars created every year is actually good for using it as a transactional currency.”
It is worth mentioning that pretty much similar to all the previous times the millionaire declared something about the asset, the recent interview and his new statement on Dogecoin has also affected Dogecoin’s price notably.