{"id":480037,"date":"2021-12-29T18:00:23","date_gmt":"2021-12-29T18:00:23","guid":{"rendered":"https:\/\/wncen.com\/?p=480037"},"modified":"2024-06-11T14:10:16","modified_gmt":"2024-06-11T14:10:16","slug":"elon-musk-explains-doge-edge-over-bitcoin-but-where-is-he-wrong","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/elon-musk-explains-doge-edge-over-bitcoin-but-where-is-he-wrong\/","title":{"rendered":"Elon Musk Explains DOGE Edge Over Bitcoin, But Where Is He Wrong?"},"content":{"rendered":"
In an interview for the Lex Fridman Podcast, CEO at Tesla Elon Musk talked about Dogecoin (DOGE), Bitcoin, Web 3, smart contracts and more. Musk has been more involved with the crypto space in 2021, but most of his takes have sparked debate and controversy.<\/p>\n
Related Reading |\u00a0DOGE Plunges 9% As Creator Reveals How Much He Holds In This Cryptocurrency<\/a><\/strong><\/p>\n When asked about his preferences of DOGE over Bitcoin, Musk claimed that \u201ceven though\u201d the former was created as a joke it is superior to BTC on transaction volume, and capability. In his view, the meme coin is also cost-efficient<\/a> versus the \u201chigh price\u201d users need to pay for using the Bitcoin network.<\/p>\n Moreover, the Tesla executive believes Bitcoin has been unable to adapt to current times where \u201cbetter internet connections\u201d make long synchronization times and \u201csmall\u201d block size obsolete. He referred to these Bitcoin attributes as \u201ccomic\u201d and added the following addressing one of this cryptocurrency\u2019s main features, its fixed supply:<\/p>\n I think there is some value to having a lineal increase in the amount of currency that is generated (\u2026). If a currency is too deflationary, if a currency is expected to increase its value over time there is reluctant to spend it (\u2026)<\/p><\/blockquote>\n Musk\u2019s replies were full of gaps for some users that took the time to demonstrate the counter argument in the Bitcoin versus DOGE debate. Vijay Boyapati, author of \u201cThe Bullish Case for Bitcoin\u201d, took to Twitter for this task and to point out the mistake made by the Tesla executive.<\/p>\n Talking about the block size for Dogecoin, Boyapati said that although it is in fact larger than Bitcoin, the latter has \u201corders of magnitude more transactional throughput\u201d via the second layer solution Lightning Network.<\/a> Historically, the BTC community has opposed any change to the network\u2019s block size.<\/p>\n This is due to the numbers of issues that could altered the network and even threatened its existence. In that sense, Boyapati said<\/a>:<\/p>\n Scaling at the blockchain layer is fundamentally flawed as it crucially undermines decentralization and protocol immutability.<\/p><\/blockquote>\n Boyapati referred to Musk\u2019s other reasons to support Dogecoin over Bitcoin. Addressing DOGE\u2019s low transaction cost, Boyapati claims it\u2019s due to the low network usage and not due to a superior design. Something similar happens to Bitcoin network fees.<\/p>\n In times of bullish price action, the Bitcoin network\u2019s fees usually tend to follow the price. The opposite happens in extend periods of downtrend. In fact, the first half of 2021 saw transactions fees of over 50 sats\/vB in opposition to todays 11 sat\/vB, according<\/a> to Mempool.space.<\/p>\nWhat Elon Musk Missed On The Bitcoin v. DOGE Debate<\/h2>\n