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Sunday, October 1, 2023

Why Elon Musk boosted Dogecoin (DOGE)?

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Like everyone who holds or loves crypto currency, we know that Elon Musk has been promoting Dogecoin (DOGE) as its own cryptocurrency for months, even years now.

For example, in December 2021, Elon Musk said that Dogecoin is a better alternative to first cryptocurrency on the marketBitcoin, in an interview with popular podcast host, Lex Friedman.

He said: “Dogecoin actually has a higher transaction volume capacity than Bitcoin, and the cost of a transaction, the Dogecoin fee, is very low.” “For now, if you want make a Bitcoin transaction, the price of this transaction is very high. So you can’t use it effectively for most things. » So is he right, or is he overvaluing Dogecoin (DOGE)?

Is Elon Musk overvaluing the Dogecoin (DOGE) cryptocurrency?

In principle, Elon Musk is right to assert that Dogecoin is capable of performing more transactions per second than Bitcoin at the base layer.

However, Bitcoin has flourished thanks to the so-called second layer “Lightning Network”. This second layer only allows cheaper and faster transactions for the Bitcoin cryptocurrency.

This second layer is faster and cheaper thanit exceeds the technological capabilities of the cryptocurrency promoted by Elon MuskDogecoin, and all this with extreme decentralization. Which leads us to think that perhaps the only advantage Dogecoin has over Bitcoin is that The logo features a beloved dog in the greatest number.

Source: The Blog

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