Bitcoin Suitable For Store Of Value, Dogecoin For Transactions, Explains Elon Musk

Tesla CEO, who overtook Amazon founder Jeff Bezos this year to become the world’s wealthiest person, said while Dogecoin could be inflationary, at least, it is a fixed number as opposed to Bitcoin

Recently Elon Musk was named Time Magazine’s ‘Person of the Year 2021'. Image: Getty

New Delhi: Chief Executive Officer (CEO) of Tesla, Elon Musk, who has been named TIME Magazine’s Person of the Year, said compared to Bitcoin (BTC), Dogecoin (DOGE) is more suitable for transactions, as Bitcoin is suitable as a store of value.

In an interview with TIME magazine, Musk said, “Even though it’s created as a silly joke, Dogecoin is better suited for transactions.”

Tesla and Spacex CEO Musk, the richest person in the world, was named Time Magazine’s ‘Person of the Year 2021'. The entrepreneur, who overtook Amazon founder Jeff Bezos this year to become the world’s wealthiest person, said while Dogecoin could be inflationary, at least it is a fixed number as opposed to Bitcoin. “And that’s actually good because it encourages people to spend, rather than sort of hoard as a store of value,” he said.

“The transaction value of Bitcoin is low and the cost per transaction is high. At least, at a space level, it is suitable as a store of value. But fundamentally, Bitcoin is not a good substitute for transactional currency,” Musk told the magazine.

“Even though it was created as a silly joke, Dogecoin is better suited for transactions. The total transaction flow that you do with Dogecoin is… transactions per day has much higher potential than Bitcoin.”

During the interview with the magazine, published on Monday, Musk talked about cryptocurrencies such as Bitcoin and Dogecoin.

“For nearly a century, TIME has named a Person of the Year — the individual or group who most shaped the previous 12 months, for better or for worse,” CEO Edward Felsenthal explained. “Person of the Year is a marker of influence, and few individuals have had more influence than Musk on life on Earth, and potentially life off Earth too,” he added.

Elon Musk’s net worth is more than $300 billion.

“I played a significant role in creating Paypal so my understanding of the money system at a fundamental level, how it actually works, the detailed mechanics of it — I think there’re very few people that understand it better than me,” Musk added.