In Brief:
- Elon Musk becomes TIME’s 2021 ‘Person of the Year’.
- Calling Bitcoin “a store of value”, Musk however, added that Dogecoin is better for transactions than Bitcoin.
- On cryptocurrency, he said that it won’t replace fiat currency in future.
TIME’s 2021 Person of the Year, Elon Musk said Dogecoin is better for transactions than Bitcoin in an interview with TIME.
Elon Musk has been an ardent supporter of meme-inspired cryptocurrency, Dogecoin even though he has holdings in Bitcoin and Ether too as revealed by him at ‘The B Word Conference’.
Calling Bitcoin as not being a good alternative for transactional currency fundamentally, Musk revealed his preference for Dogecoin instead.
Musk explained, ″[T]he transaction volume of bitcoin is low, and the cost per transaction is high”. Musk further stated that bitcoin is more preferable as a store of value, and that is why its investors want to hold onto it and not even sell it or use it for transactions.
Musk described Dogecoin as a currency that urges people to rather spend it than hoard it as ‘a store of value’.
Musk also touched upon the future of cryptocurrency. He doubts that it will replace fiat saying that he is not a huge hater of fiat currency like many in the crypto world are.
Although Musk said, “there are advantages with crypto relative to fiat, in that fiat currency tends to get diluted by whatever government it is. It ends up being a pernicious tax on people, especially those who have cash savings with dilution of the money supply.”
Musk has always been a clear supporter of cryptocurrency. Infact, his opinion on Twitter on matters like cryptos is something that attracts a lot of speculation and sensation too. He had recently declared cryptos as “impossible to destroy” and urged the regulators to not regulate it.
