Subscribe now to CryptoAsset
Bitcoin’s value has fallen drastically in the last month, wasting around 25% of its value and achieving the value of ethereum and the maximum of other primary cryptocurrencies, adding meme-based dogecoin.
Musk, speaking to Time magazine after naming him Time’s 2021 Personality of the Year, said he believes dogecoin is more suitable for transactions than bitcoin and has “much greater potential. “
Sign up now for the Loose CryptoCodex, a daily newsletter for people curious about cryptocurrencies.
“Bitcoin is an attractive example and the main driving force in this regard,” Musk said in a video shared on Twitter via Time.
“The bitcoin transaction volume is low and the charge consistent with the transaction is high. Bitcoin would possibly be suitable as a store of value, but fundamentally, bitcoin is not a smart replacement for transactional money. Even though it was created as a silly joke, dogecoin is more suitable for transactions,” Musk said, explaining, “the total transactions you can make with dogecoin, transactions consistent with the day, is noticeably more consistent with [than with bitcoin] and has much more consistent with the potential. “
Musk, who also told the magazine that he doesn’t believe dogecoin, bitcoin, ethereum or any other cryptocurrency will absolutely update fiat currency, has now said via Twitter that “Tesla will make sure products can be bought with doge and see how it goes,” following in the footsteps of Mark Cuban, some other dogecoin er and generation investor, which added dogecoin to NBA Dallas Mavericks products in March.
Bitcoin’s value has skyrocketed in the more than 12 months, as investors and investors bet that it will act as a hedge against inflation created through the government’s massive Covid-19 stimulus measures. In May 2020, famed macro-investor Paul Tudor Jones made headlines when he revealed that he believed Bitcoin was the “fastest horse to beat inflation. “
“Dogecoin is slightly inflationary, yet that inflationary number is a constant number rather than a percentage,” Musk told Time this week. people to spend instead of accumulating it as a store of value. “
Musk also said his delight in the invoice industry means he understands how the financial formula works better than most.
“I can literally communicate about the nature of cash for hours because I played a vital role in creating PayPal,” he said. “My perception of the financial formula at a basic point of how it works, its detailed mechanisms, very few other people perceive it better than me. “
High bitcoin prices, which pushed bitcoin from less than $20,000 consistent with bitcoin right now last year to nearly $70,000 last month, have helped the broader crypto market succeed at a combined price of about $3 trillion.
However, Musk has denied that his tweets are a thing in bitcoin and crypto value fluctuations even after his tweets continuously increased the value of dogecoin in recent years and his message that Tesla would avoid accepting bitcoin bills due to considerations about its environmental impact in caused bitcoin’s value to fall by 15%.
“Markets move all the time based on nothing I know of,” Musk said. “So the statements I make are materially different from the random inventory movements that can happen anyway?I don’t think so. “
CryptoCodex: a free daily newsletter for Crypto-Curious
Ethereum, the largest cryptocurrency of the moment after bitcoin, is up 500% in the past 12 months, outpacing bitcoin’s rally amid renewed interest in Ethereum-based non-fungible tokens (NFTs) and decentralized finance (DeFi). it also skyrocketed when investors bet that they can win a market percentage of Ethereum.
Dogecoin, with the help of Musk and other prominent investors and influencers, is up 5,000% over the next year, even though dogecoin’s value is now down nearly 80% from its all-time high set in May before Musk’s top profile. appearance at the Saturday Night Live comedy comic book show.
Since then, Musk has counted on dogecoin developers to update the meme-based cryptocurrency with faster transaction times and reduce fees to “beat Bitcoin without hesitation. “
The broader bitcoin and cryptocurrency market also remains very volatile and has fallen drastically in recent weeks, wiping out approximately $1 trillion in price from the combined market.