Elon Musk shared his views on the future of cryptocurrencies, distinguishing between Bitcoin and Dogecoin based on their practical use cases.
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Bitcoin as a Store of Value: Musk stated that Bitcoin is more suitable as a digital store of value or an asset allocation option rather than a currency for everyday transactions. He highlighted its limited transaction capacity and high per-transaction costs as key reasons it is not ideal for high-frequency payments.
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Dogecoin for Transactions: In contrast, Musk pointed out that Dogecoin, despite its origins as a joke, offers advantages in transaction efficiency and practicality, making it more viable for payment use cases.
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Core Argument: Musk emphasized that very few people truly understand the "essence of currency," and from both design and practical perspectives, cryptocurrencies need to align with their intended functions—Bitcoin for value preservation and Dogecoin for efficient transactions.
When discussing the long-term development of cryptocurrencies, Musk bluntly stated that very few people truly understand the essence of "currency." He cited Bitcoin as an example, pointing out that while Bitcoin is groundbreaking in the crypto system, its limited transaction volume and high cost per transaction make it unsuitable as a high-frequency trading currency from a design and practical usage perspective.
Musk believes that at its most basic level, Bitcoin is closer to a store of value or an asset allocation option than a form of currency for everyday payments. In contrast, he noted that although Dogecoin was initially created as a joke, it is more practical in terms of transaction efficiency and payment use cases.
