Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The Crypto Market ends the week at a total market capitalization of $1,175 trillion. Bitcoin has increased by over 6% this week. Ethereum gained almost 17% over the past seven days. XRP is up by nearly 3% this past week. Almost all altcoins are trading in the green, with very few exceptions. The DeFi sector increased the total value protocols (TVL) to around $44 billion. Crypto…
Tesla founder and CEO Elon Musk reaffirmed his support for the Doge ecosystem in a Friday interview on the Full Send Podcast. Musk who has always been vocal about his preference for the meme token rehashed his reasons for this.
According to the billionaire, Dogecoin has a far greater transactional capacity than king crypto Bitcoin.
DOGE Is a Better Choice in the Long Run
Musk highlighted the transaction times of either blockchain to support his argument. Bitcoin processes transactions in about 10 minutes, a good distance from Dogecoin’s one minute, emphasizes Musk. Another point the Tesla CEO brought up is the contrast in token supply.
Dogecoin uses an inflationary system that mints 5 billion tokens yearly whereas BTC has a max supply of 21 billion tokens. While many have pointed to Bitcoin’s deflationary nature as a great advantage, Musk thinks this attribute does not suit a system willing to cater to billions of transactions.
The fact that there’s five billion dollars created every year is actually good for using it as a transactional currency,” said Musk on Dogecoin.
Ultimately, the Tesla founder touts DOGE as a better option and believes the meme token is on track to function as a long-term medium of exchange.
Likewise, Musk stressed to point out that another BTC’s deflationary structure promotes hoarding. Results from a 2013 survey from the University of San Diego and George Mason University confirm this idea. Reportedly, over 60% of newly-produced Bitcoins have not been exchanged in 4 years. According to the SpaceX founder, BTC may be heading towards some trouble within the next decade.
Musk Loves the DOGE Community’s Goofiness
Although Dogecoin started as a joke, the project has gathered a massive loyal following. Billionaire Musk points to this as one of the token’s selling points. Another big perk of the meme token over many others — suggests Musk — is its relatability and goofiness.
The Dogecoin ecosystem thrives on humor, and Musk who bears the title of “Dogefather” in DOGE circles seems pleased with this. Elon claims this is one of the main reasons he supports digital currency:
It seems to have a sense of humor and doesn’t take itself too seriously.”
According to the founder, this becomes even more interesting in light of his original view. Musk noted that Dogecoin greatly yet surpasses Bitcoin when it comes to the actual total transactional throughput capacity. All these happened despite Doge starting out as an unserious cryptocurrency.
Rise in Scam Projects
Amid a rise in crypto scams, the billionaire distanced himself from projects trying to leverage his influence. Some of these Musk-themed cryptocurrencies include Dogelon Mars, Elon, and a variety of others. Musk’s pull in the crypto community is no secret and some creators believe ties to him will increase their appeal.
However, Musk has only ever endorsed two projects namely Shiba Inu and Dogecoin. The others seem to hold no interest for the billionaire.
Last week, the Dogecoin community was rife with warnings against the rise of Dogechain. Users warned that the new crypto platform was posing as Dogecoin’s blockchain when really it has no affiliation to Doge.