Elon Musk continues to champion dogecoin.
In October, Musk said that he only owns bitcoin, ether and dogecoin.
He explained why he supports dogecoin, a meme-inspired cryptocurrency that began as a joke in 2013, in particular. For Musk, it all started after hearing from his employees, he said.
“Lots of people I talked to on the production lines at Tesla or building rockets at SpaceX own Doge,” Musk said. “They aren’t financial experts or Silicon Valley technologists. That’s why I decided to support Doge — it felt like the people’s crypto.”
Musk has even joked about dogecoin potentially becoming the future reserve currency.
“The point is that dogecoin was invented as a joke, essentially to make fun of cryptocurrency,” he told TMZ in May. “Fate loves irony. What would be the most ironic outcome? The currency that started as a joke in fact becomes the real currency. To the moon!”
Fate loves irony. What would be the most ironic outcome? The currency that started as a joke in fact becomes the real currency.
Elon Musk
Musk, believes that dogecoin has an advantage over bitcoin and other cryptocurrencies and believes that it is the best cryptocurrency to transact with.
“Fundamentally, bitcoin is not a good substitute for transactional currency,” Musk told Time Magazine. “Even though it was created as a silly joke, dogecoin is better suited for transactions.”
″[T]he transaction volume of bitcoin is low, and the cost per transaction is high,” he said. Musk added that bitcoin is more suitable as a store of value, which is why its investors want to hold onto it and not sell it or use it for transactions.
Dogecoin, on the other hand, is a currency that “encourages people to spend, rather than sort of hoard as a store of value,” he said.
Although Musk is a supporter of cryptocurrencies, he doubts that it will replace fiat. “I’m not a huge hater of fiat currency like many in the crypto world are,” he told Time.
Musk’s latest Tweet resulted in a 20% rally in the dogecoin price!