Elon Musk Calls Dogecoin Better Over Bitcoin, Tesla to Accept DOGE Payments for Merchandise Sales

The richest man in the world Elon Musk has constantly supported meme-inspired cryptocurrency Dogecoin along with more serious crypto like ETH and BTC. But at the same time, Musk believes, Dogecoin is better equipped as a transactional currency.

Musk was recently awarded the title of 'Time’s 2021 Person of the Year' by Time Magazine. While speaking about preferable crypto as a transactional currency he said, “Fundamentally, Bitcoin is not a good substitute for transactional currency. The transaction volume of Bitcoin is low, and the cost per transaction is high. Even though Dogecoin was created as a silly joke, it is better suited for transactions.”

The billionaire CEO hinted that BTC is better suited as value storage, which is exactly the reason why its investors invest in it and rarely use it to buy, sell or trade with it. Musk voiced at the same time Dogecoin is a currency that “encourages people to spend, rather than sort of hoard as a store of value.” Nonetheless, advocates of bitcoin would confirm that the asset is a store of value, they claim BTC to be an accurate peer-to-peer financial system used for transactions with living practical examples like El Salvador making bitcoin legal tender.

According to the 50 year old CEO, it is very unlikely that cryptocurrency will replace fiat. He said, “I’m not a huge hater of fiat currency like many in the crypto ­world are,” he continued “there are advantages with crypto relative to fiat, in that fiat currency tends to get diluted by whatever government it is. It ends up being a pernicious tax on people, especially those who have cash savings with a dilution of the money supply.”

While this Dogecoin praise wasn’t enough, Musk made another tweet earlier today stating that Tesla shall be accepting Dogecoin payments against merchandise sales. Well, Musk hasn’t provided any timeline as to when will Tesla start accepting DOGE payments. However, this announcement was enough to trigger a rally in the DOGE price despite the entire market moving sideways.

In the last 24 hours, Dogecoin is up 16.59%, trading at $0.2016 whereas Bitcoin is down 3.33% trading at $47,453.27. Musk is distinctly bullish on cryptocurrency but economic experts consider cryptocurrency as a volatile, risky and speculative investment.