Musk Says Web 3.0 Sounds Like BS – Touts Doge

Musk managed to draw the ire of the broader crypto community again while delighting Doge holders.

Elon Musk, CEO of Tesla and SpaceX, posted a series of tweets shading Ethereum and Web 3 while touting Doge. Unfortunately, his tweets managed to pump up Doge again for a while.

On Thursday, Musk wrote that Web 3, a concept that’s widely supported in the crypto community, “sounds like bs.”

The stance is extraordinary, seeing that his brother, Kimbal Musk, launched an autonomous decentralized organization (DAO) for charity. Arguably, DAO projects are part of Web 3, even according to Kimbal Musk, who said:

Everyone on #Web3 has been fantastic, and we could not have asked for a more warm welcome ❤️🌱🤠

Musk replied to Sam Altman, the CEO of OpenAI. Altman said that returns on investments in the 2020s would probably be much lower than in the 2010s. He believes this is due to a flood of capital in the financial sector, thanks to Fed’s stimulus and COVID relief. However, he added that returns on Web 3 projects, often associated with blockchain and the metaverse, will remain high.

Musk disagreed, saying that Web 3 “sounds like bs.”

Web 3.0 – What is it?

But what is Web 3? The term refers to a model of how the internet evolved (and will become) in time. First, there was Web 1. It featured a large number of websites that the users would find. However, posting anything on the internet was hard, as building a website required some technical knowledge.

That’s where Web 2 comes in. Web 2 is the internet we know today. It features giant corporations that run platforms for social media, e-commerce or others. These platforms allow average users to become creators, share their ideas and sell their products. But, on the other hand, giant corporations profit from selling user data and advertising.

Web 2 is the era of Amazon, Google and Meta. However, new technologies like the blockchain could threaten their dominance. That is why some believe that we are entering an era of Web 3.

Web 3 promises to decentralize the internet. For example, the internet could work on a blockchain consensus mechanism instead of several giant platforms running the space.

Many crypto supporters see it as an enormous promise for the internet. For example, entrepreneur and crypto enthusiast Alex Becker believes that blockchain can help small users compete with massive platforms like Amazon. He also believes that Web 3 would help democratize society and take the power away from the government and the media.

Musk’s Take on It

That is why most crypto supporters did not react well to Musk’s tweet. Elastos, an open-source software company, used their Twitter account to criticize Musk’s take. They said that Web 3 would allow internet users to become internet owners.

There are already developments in that space. For example, Basic Attention Token pays users money for their data while browsing Brave browsers. In addition, HEX claims to be a decentralized certificate of deposit, and it rewards users for staking coins.

Major companies have already unveiled plans for investment into Web 3. For example, stripe, the most prominent fintech in the US, worth $95 billion, said it planned to build the future of web 3 payments.

Furthermore, the co-founder of Reddit partnered to invest $100 million on blockchain social media on Solana.

Musk also took shots at Ethereum for its high gas fees. Ethereum is an intelligent contract network. Blockchain networks like Ethereum are essential for a transition to Web 3.

Musk Touts Doge

Instead, Musk suggested DogeCoin as an alternative. The CEO of Tesla has a strange fascination with the meme coin, and he likes to tweet about it. Last week, for instance, he attacked Binance for allegedly shady behaviour over Doge withdrawals.

This has had a marked effect on the price of Doge. His tweets have sent Doge, joke crypto, to the top ten cryptos by market cap. Musk tweeted about Doge, many of his followers and crypto traders bought it up, hoping that the attention would send Doge even higher.

Musk’s tweets have also inspired a series of doge-themed cryptos, including Shiba Inu (SHIB) and Floki Inu. SHIB is the 13th crypto by market cap, worth $23 billion. Doge, on the other hand, is worth $27.5 billion.

His newest tweets briefly sent Doge to $0.222 from $0.206. However, the meme coin has since fallen to $0.211. Doge competitor SHIB did not react to Musk’s tweets.

Doge Can’t Replace Ethereum

Despite Musk’s support, Doge cannot yet run smart contracts. This makes Musk’s suggestion rather unworkable at this point.

Musk has spoken about making Doge better, including scaling it and reducing transaction fees. He even claimed to be working with Doge developers on improvements.

However, Doge has seen no patches as of yet. On the other hand, Ethereum founder Vitalik Buterin said that Musk’s Doge plans were unviable. Buterin criticized Musk’s claims, explaining that there are firm limits to how far blockchain can scale. He also said that Musk’s plans would lead to “extreme centralization” in the coin and compromise what made blockchain what it is.

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It is unclear whether Musk was serious with his suggestions about Doge or his criticism over Web 3. Earlier in 2021, he stated that his tweets about Doge were just jokes. It is also unclear whether his tweets about Web 3 are jokes.

Occasionally I make jokes about dogecoin, but they are really just meant to be jokes

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