Dogecoin is best suited as a transaction currency over Bitcoin, claims Elon Musk ⋆ ZyCrypto

Elon Musk, the world’s richest person and CEO of Tesla, still takes Dogecoin very seriously despite its meme status. Speaking on the Full Send podcast on Friday, the billionaire confirmed his support for DOGE, calling it a fun and easy-to-use cryptocurrency.

“I mainly support Doge, honestly, because I think Doge has the memes and the dogs, and it seems to have a sense of humor and doesn’t take itself too seriously.” Musk said when asked what he thought about the future of crypto.

Musk, 51, praised the cryptocurrency’s use cases, noting in particular that its transaction capacity eclipsed that of Bitcoin. “I think, actually strangely, even though Doge was just designed to be like this ridiculous joke currency, the actual total transaction capacity of Doge is much higher than bitcoin.”

According to him, while Dogecoin transactions complete in 60 seconds, Bitcoin takes about 10 minutes, an undesirable number for the world’s largest cryptocurrency. He further added that, unlike bitcoin’s limited supply of 21 million coins, Dogecoin’s inflation feature, which allows 5 billion coins to be created annually, was essential for the coin to be a transactional currency.

“The fact that five billion dollars are created every year is actually good for using it as a transaction currency.” Musk added.

Musk started out as an ardent supporter of Bitcoin, with Tesla buying $1.5 billion in 2021 and launching payments for Tesla cars with BTC. He would later drop the cryptocurrency, claiming that mining was dangerous to the environment and ban payments in it.

Since then, he has shifted ground, becoming a die-hard supporter of Doge on social accounts and securing the title “The Dogefather”. Tesla, SpaceX and The Boring Company – an underground construction company based in Las Vegas – have also started accepting Dogecoin for goods in the past year with Musk’s blessings.

Recently, Tesla revealed that it had sold 75% of its Bitcoin holdings, and Musk stated that the company also held Dogecoin and had not sold any of those holdings. “We have not sold any of our Dogecoin; we still have it” Musk said in a quarterly investor call last month. Elon has also revealed that he has some Doge in personal wallets and plans to keep buying more.

However, over the past 17 months, Musk’s recommendation has not had much of an effect on the meme coin, with its price down over 90% since May 2021. DOGE was trading at $0.06825 after a 1.77% decline in the last 24 hours.