Elon Musk, the TIME’s Person of the Year, Still Prefers Dogecoin Over Bitcoin As Transactional Currency

The world’s richest man Elon Musk has been named as the TIME’s Person of the year 2021 on Monday, December 13. Mr. Musk who has often had frank opinions about digital assets once again shared his opinions during an interview with TIME Magazine.

As we know, Elon Musk has been largely favoring the meme-inspired cryptocurrency Dogecoin (DOGE) for a very long period of time. He also noted that he has some part of his investments in DOGE apart from Bitcoin (BTC) and Ethereum (ETH).

During his recent interview, Musk said that he would prefer Dogecoin over Bitcoin or any other cryptocurrency for transactional purposes. He further added:

“Fundamentally, bitcoin is not a good substitute for transactional currency. 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”.

Bitcoin More Suitable As a Store-of-Value

While that Musk favors DOGE over BTC, he isn’t critical of the world’s largest cryptocurrency. Musk says he thinks Bitcoin to be more suitable as Store-of-Value. That is why investors usually hold on to it and not sell it or use it for transactions, he notes.

He further added that Dogecoin, on the other hand, is a currency that “encourages people to spend, rather than sort of hoard as a store of value”. While some Bitcoin supporters would also agree to the fact that Bitcoin serves as a store of value. On the other hand, countries like El Salvador have made Bitcoin a legal tender thereby facilitating daily BTC transactions.

Elon Musk is overall bullish about cryptocurrencies but he doubts that they will replace fiat. “I’m not a huge hater of fiat currency like many in the crypto ­world are,” he added. But he notes that crypto has a relatively higher advantage over fiat. He stated:

“There are advantages with crypto relative to fiat, in that fiat currency tends to get diluted by whatever government it is. It ends up being a pernicious tax on people, especially those who have cash savings with dilution of the money supply.”