Why is Dogecoin a better payment option than Bitcoin?
Tesla and SpaceX CEO Elon Musk was chosen the 2021 Person of the Year by the US weekly magazine “TIME” recently. Elon Musk, as we all know, is a big fan of cryptocurrencies. He is also the co-founder of the well-known payment corporation PayPal, and he has his own distinct perspective on payment methods and protocol techniques. The richest man in the world did not miss the opportunity to promote his favorite Dogecoin and explained in detail why he believes Dogecoin is superior in several aspects, according to a taped conversation with Elon Musk provided by “TIME.” Elon Musk believes Bitcoin is a trustworthy store of value, but he claims that Dogecoin can execute more transactions at a cheaper cost of use than Bitcoin. As a result, he considers Dogecoin to be a superior payment option to Bitcoin. BigONE believes that the recent surge in the price of Dogecoin is due in large part to Elon Musk’s comments.
Five functions of Cryptocurrency
Before we get into why Dogecoin is so intriguing, it’s important to grasp what cryptocurrency is. In order for legal currency and cryptocurrencies to be beneficial to us, they must fulfill the following five fundamental attributes:
• Value scale: the function of measuring whether all commodities have value and whether their value is high or low.
• Circulation means: currency acts as a medium of exchange in the circulation of commodities to realize the value of commodities.
• Storage means: Currency acts as an independent form of value and means of storage of social wealth.
• Means of payment: a widely accepted method of payment for paying off debts or purchasing goods.
• World currency: Currency in the form of equivalents in the world market.
Against this backdrop, Elon Musk feels that Dogecoin outperforms Bitcoin in at least some of their standard functions.
Elon Musk discusses the distinction between Dogecoin and Bitcoin.
BigONE believes that Elon Musk’s grasp of the cryptocurrency system has always been at the most fundamental level of its operation. As the founder of a multinational and well-known payment organization, he is intimately familiar with the intricate mechanism of currency. Bitcoin, according to Elon Musk, is a particularly intriguing example. Because of its low transaction volume, Bitcoin has a limited transaction volume, and the cost of each transaction is relatively significant. As a result, Elon Musk and many other seasoned cryptocurrency aficionados believe that Bitcoin is a better choice as a means of storing value. But, fundamentally, Bitcoin is not a suitable replacement for transactional currencies.
Unlike his assessment of Bitcoin, Elon Musk feels Dogecoin is well-suited as a commonly utilized payment method. Despite the fact that Dogecoin is a terrible joke, it is more ideal for trading. Analyzing the total transaction flow of Dogecoin reveals that it has more potential than Bitcoin. While Dogecoin is now suffering inflation, the figure is a fixed number rather than a percentage. This suggests that the percentage of inflation will decrease over time.
BigONE also believes that this is a positive trend because it encourages individuals to use Dogecoin for consumption rather than hoarding it as a means of storing value.
According to survey data from relevant institutions, Tesla Motors under Elon Musk currently holds approximately 38,300 bitcoins, ranking second in terms of holdings. Earlier in 2021, Elon Musk addressed if Tesla might accept Bitcoin as a payment method for Tesla electric vehicles. He first refused Bitcoin as a payment mechanism, causing the price of Bitcoin to plummet by roughly 50%. In 2021, Tesla’s Bitcoin holdings fluctuated due to his erratic social media activities. This is also why many people despise him. Previously, related organizations initiated a boycott campaign against Elon Musk’s social media profiles. Elon Musk should recognize the value of silence.