Tesla CEO Elon Musk believes that even though Dogecoin was created as a silly joke, it is much better suited for transactions than Bitcoin. In a recent interview with TIME magazine, after being named TIME’s Person of the year, he said, "Fundamentally, Bitcoin is not a good substitute for transactional currency."

Musk said: “The transaction value of Bitcoin is low and the cost per transaction is high. At least at a space level, it is suitable as a store of value. But fundamentally, Bitcoin is not a good substitute for transactional currency.”

“The total transaction flow that you do with Dogecoin in transactions per day has a much higher potential than Bitcoin,” he added

Musk has been a frequent proponent of the meme currency and has helped to boost its popularity significantly through his tweets. Dogecoin had spiked over 20 percent earlier this week to over $0.21 after Musk announced that the electric car manufacturing company will start accepting it for various merchandise it plans to sell. "Tesla will make some merch buyable with Doge and see how it goes," Musk tweeted.

However, he did not specify what merchandise will be sold for dogecoins. Tesla sells many novelty items like belt buckles, miniature models of its vehicles. The company recently unveiled a limited edition' cyber whistle', a miniature replica of the much-awaited Cybertruck.

These items start from $50 and can go as high as $1,900. According to data from Coinmarketcap, Dogecoin has risen by nearly 6,000 percent over the last year.

Co-founder of the Bitcoin IRA has said, "Elon Musk has been an advocate for the crypto community for many years. His latest announcement will usher in a new era of commerce and trailblaze a path for altcoins to expand their use case."

Musk has been a supporter of transitioning cryptocurrencies into the traditional financial market for years. But when it comes to his favourite cryptocurrency, it has always been dogecoin.

Musk has 66 million followers on Twitter and often uses his influence on the site to show support for his favourite cryptocurrency. A tweet from Musk can send the prices of the meme-inspired crypto coin soaring, and in some cases, even tumbling, as it did when he called it a 'hustle’ during his guest-host spot on the "Saturday Night Live" comedy TV show in May.

Also Read | Yet another 'verified' fake Elon Musk page pops up on Facebook with cryptocurrency scam

(Edited by : Yashi Gupta)

First Published:Dec 18, 2021 10:31 AM IST