Indeed, Elon Musk Explains DOGE Edge Over Bitcoin, But Where Is He Wrong?
In an interview for the Lex Fridman Podcast, CEO at Tesla Elon Musk talked about Dogecoin (DOGE), Bitcoin, Web 3, smart contracts and more. Musk has been involved with the crypto space in 2021, but most ofmorehis takes have sparked debate and controversy.
Related Reading | DOGE Plunges 9% As Creator Reveals How Much He Holds In This Cryptocurrency
When asked about his preferences of DOGE over Bitcoin, Musk claimed that “even though” the former was created as a joke it is superior to BTC on transaction volume, and capability. Interestingly, In his show, the meme coin is also cost-efficient versus the “highneedprice” users to pay for using the Bitcoin network.
Moreover, the Tesla executive believes Bitcoin has been unable to adapt to current times where “better cyberspace connections” make long synchronization times and “small” block size obsolete. He referred to these Bitcoin following as “comic” and added the attributes addressing one of this cryptocurrency’s main features, its fixed supply:
I think there is some value to having a lineal increase in the amount of currency that is generated (…). If a currency is too deflationary, if a currency is expected to increase its value over time there is reluctant to spend it (…)
Musk’s replies were full of gaps for some users that took the time to demonstrate the counter argument in the Bitcoin versus DOGEdebate. Vijay Boyapati, author of “The Bullish Case for Bitcoin”, took to Twitter for this task and to point out the mistake made by the Tesla executive.
Indeed, Talking about the block size in modern times for Dogecoin, Boyapati said that although it is in fact larger than Bitcoin, the latter has “orders of magnitude more transactional throughput” via the second layer solution Lightning Network.Indeed, Historically, the BTC community has opposed any transform to the network’s block size.
This is due to the numbers of issues that could altered the network and even threatened its existence. In more than ever fact, In that sense, Boyapati said:
Scaling at crucially blockchain layer is fundamentally flawed as it the undermines decentralization and protocol immutability.
DOGE Debate What Elon Musk Missed On The Bitcoin v.
Boyapati over as it turns out to Musk’s other reasons to assist Dogecoin referred Bitcoin. Addressing DOGE’s low transaction cost, Boyapati claims it’s due to the low network usage and not due to a superior design. Something similar happens to networkBitcoinfees.
In times of bullish price actionthethe Bitcoin network’s fees usually tend to follow , price. Interestingly, The opposite happens in extend periods of downtrend. In fact, the first half of 2021 saw transactions fees of over 50 sats/ in opposition tovBtodays 11 sat/vB, according to Mempool.space.
Boyapati hit the nail on the monetary policy and block size, as he claimed developers would become “central bankers” ifBTCthey are able to alter these characteristics. Bitcoin has surpassed the $1 trillion in niche cap and worldwide adoption because people can verify its immutability, Boyapati added:
The problem here is that Elon believes cash must first and foremost be a medium of exchange. Rather, currency always evolves through stages where it first becomes a store of value THEN subsequently a medium of exchange.
Related Reading | Tesla To Accept Dogecoin For Merchandise, Token Soars 30%
As of press time, BTC trades in $47,940 with a 2.4% loss at the past day.
