Elon Musk, the founder of SpaceX, has had a busy year. A few days went by when his entertaining (often controversial) initiatives, statements, or Tweets did not make news. He was duly named Time magazine’s Person of the Year.
In a Time interview, Elon Musk recently revealed his preference for dogecoin, arguing that it is “better suited for transactions.” Bitcoin is not a replacement for transactional currency.
“Bitcoin’s transaction volume is modest, and the cost per transaction is high.” It is, at least in terms of space, adequate for a possible value shop. “However, bitcoin is not a good substitute for transactional cash,” he claims.
Watch: TIME's 2021 Person of the Year @elonmusk discusses cryptocurrency #TIMEPOY https://t.co/FfwEGxW7LX pic.twitter.com/5BXAZky0LS
— TIME (@TIME) December 13, 2021
He goes on to say that “even though it was created as a foolish joke, the overall transaction flow for dogecoin has far greater potential than bitcoin.” It is slightly inflationary, but it is a set figure rather than a percentage. That is, the percentage of inflation diminishes over time.”
Why is this a positive thing? It encourages people to spend money rather than save it.
Musk’s support for cryptocurrencies is well known. In an SEC filing earlier this year, Tesla announced a $1.5 billion bitcoin transaction. He is, however, “not a major hater of fiat currency, as many in the crypto world are.”
“There are advantages to crypto versus fiat cash in that fiat currency is diluted by whatever government it is.” “It ends up being a devastating tax on people, particularly those with cash reserves because it dilutes the money supply,” he argues.
