Bitcoin, according to Elon Musk, is suitable for use as a store of value.
Tesla CEO Elon Musk, who was awarded Time Magazine’s Person of the Year, believes bitcoin is better suited as a store of wealth than the joke cryptocurrency dogecoin, which is better suited for transactions. “Even though it was created as a joke, dogecoin is better suited for transactions,” Musk remarked.
Elon Musk, CEO of Tesla and SpaceX and the world’s richest person, has been chosen Time Magazine’s “Person of the Year” for 2021. Musk discussed cryptocurrencies bitcoin (BTC) and dogecoin (DOGE) in an interview with the magazine that was published on Monday (DOGE).
“Person of the Year is a measure of influence, and few people have had more influence than Musk on life on Earth, and potentially on life beyond Earth,” CEO Edward Felsenthal said. Musk’s net wealth exceeds $300 billion.
“I played a significant role in creating Paypal, so my understanding of the money system at a fundamental level, how it actually works, the detailed mechanics of it — I think there’s very few people that understand it better than me,” Musk said.
The Tesla CEO then stated that bitcoin is inappropriate for payment purposes. “Bitcoin’s transaction volume is low, and the cost per transaction is high,” he remarked emphasizing:
It is, at least at its base level, suitable for maybe a store of value.
Tesla CEO Elon Musk has long been a supporter of the joke cryptocurrency. In the crypto world, he is even referred to as the Dogefather. He previously stated that he owned dogecoin, bitcoin, and ether. However, his firms, Tesla and SpaceX, solely possess bitcoin.
In an interview with Time Magazine, Tesla CEO Elon Musk stated:
Even though it’s created as a silly joke, dogecoin is better suited for transactions.
Tesla and SpaceX CEOs proceeded to explain dogecoin. “It is slightly inflationary, but it is a fixed number rather than a percentage,” he explained. “That means that its percentage inflation actually decreases over time, which would be actually good because it encourages people to spend rather than hoard it as a store of value.”
Musk previously stated that he regards DOGE as the people’s cryptocurrency, and that everyone he speaks with at Tesla owns dogecoin. In August, he agreed with Shark Tank star and Dallas Mavericks owner Mark Cuban that “the community for doge is the strongest when it comes to using it as a medium of exchange.”