Elon Musk criticizes Bitcoin and Ethereum for processing speed and transaction fees, while giving too much praise to Dogecoin

Popular crypto youtuber Matt Wallace mentioned Dogecoin on Twitter and reminded the community that a major network update is imminent. And Elon Musk, Tesla billionaire, continues to start the crypto war. In addition to supporting DOGE, Musk has criticized both Bitcoin and Ethereum for processing speed and transaction fees, arguing that Dogecoin can do better.

Elon Musk criticizes two market-leading blockchains

According to Wallace, the upcoming upgrade will make the Shiba Inu-inspired coin one of the most widely used in the world. Interestingly, Tesla executives were quick to respond and express their warm support for Wallace’s views.

BTC and ETH follow a multi-tier transaction system, but the base tier transaction rate is slow and transaction costs are high.

It is in credit that Doge maximizes the base tier transaction rate and minimizes transaction costs, with the exchanges acting as the de facto secondary tier.

– Elon Musk (@elonmusk) July 9, 2021

The story could have ended here, but no, Musk doesn’t endorse Dogecoin in the usual way. Instead, the Tesla CEO said that both Bitcoin and Ethereum have a multi-tier scaling model, but the base tier transaction speed is slow and transaction fees are high. However, my favorite memecoin is a better solution as it helps lower transaction fees.

Additionally, in his opinion, Dogecoin will scale to maximize transaction speed on the base layer and the exchanges will act as layer 2.

Although Musk’s support helped raise the price of DOGE by 7% to $ 0.22, the crypto community disliked and even criticized the billionaire’s opinion. One person asked how exchanges work as Layer 2 for Dogecoin. Meanwhile, many Musk are pushing to work on scalability solutions for Bitcoin and Ethereum. However, Musk doesn’t seem to care much as he only focuses on these memecoin.

The DOGE price rose after Musk’s tweet. Source: TradingView

Previously, after a series of tweets about DOGE that resulted in prices rising / falling abnormally, Musk had suggested that people not take their social media behavior too seriously. But he kept mentioning Dogecoin on Twitter, even asking for developer support, and promising to literally get DOGE to the moon through his rocket company SpaceX.

Musk’s views on other cryptocurrencies are not that uniform. In around May 2021, about two months after accepting bitcoin payments, Musk announced a hiatus due to environmental concerns in mining bitcoin. Since then, Elon Musk has repeatedly criticized the world’s oldest cryptocurrency.

Veronica

According to the AZCoin News

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