Elon Musk, an entrepreneur and business magnate, mainly invests in crypto currencies such as Bitcoin, Ethereum and Dogecoin. As reported by Tesla and SpaceX CEO Elon Musk, cryptocurrency Dogecoin is the best for transactions in comparison to Bitcoin and other cryptocurrencies. Let’s analyze the reasons behind Elon Musk cryptocurrency Dogecoin favor.
What Is Cryptocurrency?
Cryptocurrency is defined as a digital payment system which is not dependent on any of the banks to authenticate transactions. When we transfer the cryptocurrency funds, the transactions are logged in a public ledger. Cryptocurrency is stored in digital wallets. Cryptocurrency received its name as it uses encryption to validate transactions. Dogecoin is a cryptocurrency which is created by two software engineers namely, Billy Markus and Jackson Palmer in 2013. It is considered both the first “meme coin”, and, more precisely, the first “dog coin”. As we all are aware, Bitcoin is the first and world’s biggest cryptocurrency introduced in 2009. Bitcoin is basically a kind of digital currency in which transaction records are maintained and they are independent of the central bank.
Who Is Elon Musk?
Elon Musk is well-known for his cryptocurrency endorsements. He closely analyzes the cryptocurrency and tweets his observations regularly. As per information from Elon Musk cryptocurrency Bitcoin has low transaction value and the cost per transaction is high while Dogecoin is well suited as the transaction value is of much higher potential than Bitcoin. As mentioned by Elon Musk cryptocurrency Bitcoin is basically not a good substitute for transaction processing, but is more suitable as a store value and that’s the reason why people want to hold Bitcoin and not to sell it or use it for transactions purpose. According to Elon Musk cryptocurrency Dogecoin is quite inflationary, but the inflationary number is a fixed number as opposed to a percentage, which means over a time its percentage of inflation decreases. This is actually good as it encourages people to spend rather than holding it as a store of value. As per the Google Trends data, Dogecoin is the most Googled cryptocurrency in the US last year. The study was prepared throughout the United States to establish the cryptocurrency, find people of each state who want to invest in, based on the searches.
Elon Musk Cryptocurrency Dogecoin
The total transactions that one can perform per day with Dogecoin, has a considerably greater potential as compared to the Bitcoin. Elon Musk has also worked with Paypal, thus, has a good knowledge of the transaction processing. Musk, a person of Times magazines for the year 2021, while speaking in times interview highlighted that Dogecoin has a “much higher potential”. The latest information from specialized bitcoin and digitalized currency news channel, Coindesk confirms that the transaction fee of Dogecoin is very low, which comes around an average of 0.65 $ per transaction whereas for a particular transaction in Bitcoin costs 15 $ approximately. As stated in a recent tweet by Elon Musk cryptocurrency Dogecoin will be accepted in Tesla, his Electric car maker company, for some commodities such as belt buckle, apparel, mini models of its vehicles, etc. and he will see how it works. This has really increased the shares and market value for Dogecoin. Considering all the above mentioned points one can understand that, Elon Musk is a great supporter of cryptocurrency Dogecoin and he endorses Dogecoin over Bitcoin due to Dogecoin’s higher potential value, lower transaction charges and much more.