Dogecoin (DOGE) literally started a few years ago as a joke, but in the meantime, some prominent figures in the cryptocurrency world see meme-coin as a competitor to Bitcoin (BTC). One of these people is the world’s richest man, Elon Musk.
Dogecoin vs. Bitcoin
During an episode of the program Submit an entire podcastMusk, where Musk was a recent guest, said that the Dogecoin network is much stronger than the Bitcoin network at certain points. For example, the Dogecoin network has a much higher transaction capacity. According to Musk, this means that Dogecoin is basically a more suitable method of payment.
Some Musk companies, including Tesla and SpaceX, already offer customers the option to purchase merchandise using DOGE as payment.
During the broadcast, Musk explained that a transaction on the Dogecoin network can be completed within 60 seconds. This is while a transaction on the Bitcoin network takes about 10 minutes. This is reason enough for Elon Musk to argue that Dogecoin has a better payment system than Bitcoin.
“I support Doge mostly because I think Doge has memes and dogs, has a sense of humor and doesn’t take himself too seriously. I think oddly enough, despite the Doge’s design as a ridiculous ‘joke coin’, the actual total productivity of the Doge is much higher than Bitcoin Coins.
Today, inflation is a word that many investors have come to absolutely hate. The truth is that the Dogecoin network is also experiencing strong annual inflation. At least 5 billion new DOGE tokens are added every year.
“The fact that five billion DOGE is added every year is actually good to use as a transaction currency.”
According to Musk, this is not a flaw, but an advantage. Since many additional tokens are added every year, the network is better suited as a means of payment. In the network where there is hardly any swellOr even deflation, Musk said, people are more likely to save their tokens rather than use them to make payments.