Elon Musk Claims Dogecoin Has Potential As A Currency

Alex Dovbnya

Elon Musk has reaffirmed his support for Dogecoin, the world’s largest cryptocurrency, in a recent tweet

Tesla CEO Elon Musk has reiterated his support for Dogecoin, claiming that the Bitcoin parody has the potential to become a currency in a recent tweet.

Musk has repeatedly called the meme coin “folk crypto” to emphasize its widespread appeal.

Due to the inflation mechanism, Dogecoin is a viable currency as it encourages people to spend more. People are unlikely to hoard the meme coin as it does not act as a store of value.

Bitcoin, on the other hand, is a disinflationary currency, making it “not a good substitute” for transaction currency, according to Musk.

That said, the Tesla boss has previously expressed doubts that Dogecoin will be able to replace fiat.

Last month, Robinhood CEO Vlad Tenev believed that Dogecoin was a much cheaper alternative to popular card networks. For this to happen, the meme coin’s block time must be reduced to ten seconds.

Meanwhile, Dogecoin is now down more than 91% from its peak, which was reached a year ago. The meme cryptocurrency saw a short-lived price spike after Twitter finalized its deal with Musk. However, the meme cryptocurrency then plunged lower along with the rest of the market. Earlier this week, the price fell below 10 cents.

In the tweet that caught Musk’s attention, Billy Markus, the co-founder of the joke cryptocurrency, says he likes the joke cryptocurrency because “it knows it’s stupid”.

The cent billionaire previously half-jokingly predicted that Dogecoin could become the currency of the Earth. It would be “the most entertaining outcome”, according to the controversial entrepreneur.

Leave a Reply

Your email address will not be published.