Elon Musk, the CEO of SpaceX and Tesla, has been a major Dogecoin supporter. Over the past few years, he was known to drop random DOGE-related memes and mentions on his Twitter. As of 2021, Elon Musk has taken a much more active role in promoting and supporting the crypto industry’s oldest memecoin.
While he had also praised Bitcoin several times, he does have his issues with it. One of his companies, the electric carmaker Tesla, both started and stopped accepting BTC payments in 2021, due to the coin’s major carbon footprint. He did reveal, however, that he is an official “bitcoiner,” but he wants BTC to go green before his company can continue supporting it.
On the other hand, Dogecoin remains his favorite crypto. He also sees DOGE as a better coin for making transactions compared to BTC, even despite being made as a joke back in 2013.
Dogecoin Encourages Spending, while Bitcoin is for HODLing
Dogecoin encourages spending, while Bitcoin is for HODLing, — Musk shared this opinion after being named Time’s Person of the Year. He added that Bitcoin’s transaction volume is low, while the cost of transactions is too high. He still sees Bitcoin as a great store of value, however. Musk believes that Bitcoin HODLers see it as such, too, which is why they are holding it instead of using it for transactions.
At the same time, Musk sees DOGE as a cryptocurrency that encourages people to spend, rather than hold, waiting for a price to increase.
Many in the Bitcoin community would agree that the coin is gaining a ‘store of value’ status. Still, they might also argue that it was designed to serve as a P2P financial system, which is more about being used for transactions. El Salvador’s move to make BTC legal tender is a good example of this.
For the time being, Musk remains bullish on crypto, but he doubts that it will ever be used to replace. In fact, he says that he is not a hater of fiat currencies, unlike many in the crypto world. However, he does see many of the advantages that the crypto industry has relative to fiat.