Elon Musk has continued to express his interest in the humor coin Dogecoin. Musk stated his preference for DOGE over Bitcoin in a recent interview with Lex Fridman.
He Thinks Dogecoin Is the Best Money He’s Ever Seen.
Elon Musk, a former PayPal executive, believes Dogecoin is ahead of the pack as a medium of trade. This is not the first time Tesla’s CEO has voiced such an opinion. He recently stated this in an interview with Times magazine as the magazine’s person of the year.
The Tesla CEO told Lex Fridman that he believes Mars will use a cryptocurrency, touting Dogecoin as a possible option. He said this after stating his belief that humanity will land on Mars by 2026. Musk, on the other hand, emphasized that the decision of a currency would be left up to the population of Mars, adding that it “would be kind of a localized thing on Mars.”
During the interview, Musk discussed the status of the banking system and how cryptocurrency corrects “errors increased by the government.” The billionaire stated this, citing the complexity of maintaining the database as well as the government’s discretionary power to boost supply.
Musk went on to say that, while Bitcoin improves on this system, its limited transaction volume and hefty costs make it unsuitable as a currency and more akin to a store of value. He claimed that Dogecoin, on the other hand, was more scalable in terms of volume and had very low fees.
Musk agreed that Layer 2 solutions such as the Lightning Network, which has been implemented in countries such as El Salvador, address the difficulties stated. However, he went on to say that Bitcoin’s deflationary nature encouraged individuals to “hodl” it rather than spend it, which he said was not a characteristic that a currency should have. Musk went on to say that Dogecoin’s use of a fixed value for inflation solves the problem without necessarily making it inflationary.
Musk is still a member of Team DOGE.
This year, Elon Musk has remained an outspoken supporter of Dogecoin. To promote the coin, he has used a variety of media, including Twitter and recent interviews. Many have blamed the billionaire for the rise in interest in the coin.
In a tweet nearly two weeks ago, the Tesla CEO, who had earlier this year launched a Twitter poll asking if his fan base would prefer to utilize DOGE for payments at Tesla, stated that the business would start taking the token for specific Tesla items.
“Tesla will create some apparel with Doge and see how it goes.”
Elon Musk’s enthusiasm for DOGE shows no signs of waning. In May, the billionaire stated in a tweet that he was working on the project alongside developers.
“I’m collaborating with Doge developers to increase system transaction efficiency.” “Possibly promising.”