Time person of the year for 2021 Elon Musk believes Dogecoin to be good for transactions, sees Bitcoin as store of value

NEW DELHI: In an interview with Time magazine, Tesla CEO Elon Musk spoke about cryptocurrencies, Bitcoin and the meme crypto Dogecoin. He said that

Dogecoin

is good for transactions, while Bitcoin has a store of value.


On the eve of being named as Time 'Person of the year' for 2021,

Musk

was interviewed by the magazine.
Time 'Person of the Year' award is given every year and it started in 1927.

The honour is given to an individual or group who influenced the last 12 months strongly, in a positive or negative way.

Musk explained that having a significant role in creating PayPal, he had an understanding of the money system at a fundamental level, and the way it actually works.

He compared the two cryptocurrencies in the following manner:

* He said that Bitcoin is unsuitable for payments as its transaction volume is low and the cost per transaction is high.

* At its base level, it's suitable as a store of value.

* Musk emphasized that fundamentally Bitcoin can't be an alternative for transactional currency.

* About Dogecoin, he said that although created as a meme currency, it is suitable for transactions.

*

Doge

is a bit inflationary but even that inflationary number is a fixed number as opposed to a percentage, Musk described.

This means that its percentage inflation actually decreases after a period and that makes people spend rather than hoard it as a store of value.

Musk has been a proponent and supporter of the meme cryptocurrency since its launch and called himself Dogefather at one point too. He revealed the reason for supporting Doge was because he and many of his employees at Tesla and Spacex own the crypto along with Bitcoin and Ether.

(For the latest crypto news and investment tips, follow our Cryptocurrency page and for live cryptocurrency price updates, click here.)

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