Billionaire and business magnate Elon Musk is once again praising dog-themed crypto asset Dogecoin (DOGE).
In a lengthy new interview with podcast host Lex Fridman, Musk says that the popular meme coin’s built-in mechanisms render it superior to leading crypto Bitcoin (BTC) in terms of practical use cases.
“Part of the reason why I think there’s merit to Dogecoin, even though it was obviously created as a joke, is that it actually does have a much higher transaction volume capability than Bitcoin. The cost of doing a transaction, the Dogecoin fee is very low.
Right now, if you wanted to do a BTC transaction, the price of doing that transaction would be very high, so you could not use it effectively for most things, and nor could it even scale to a high volume.”
Musk then says DOGE’s supply mechanic, which may appear inflationary at first, is actually deflationary in the long run and that its monetary system is ‘fundamentally’ the best one he’s seen thus far. However, he notes that there’s a caveat – it’s all one big accident.
“Dogecoin, just somewhat randomly, has a fixed number of coins or hash strings that are generated every year. So, there’s some inflation, but it’s not a percentage at base. It’s a fixed number, so the percentage of inflation will necessarily decline over time.”
I’m not saying that it’s the ideal system for a currency, but I think it actually is just fundamentally better than anything else I’ve seen, just by accident.”
DOGE is exchanging hands at $0.17 at time of writing, a 12% decrease from its seven-day peak of $0.194.
Originally Published here
Featured Image: Shutterstock/digitalart4k/sensvector
