In an interview for the Lex Fridman Podcast, CEO at Tesla Elon Musk talked about Dogecoin (DOGE), Bitcoin, Net 3, sensible contracts and extra. Musk has been extra concerned with the crypto house in 2021, however most of his takes have sparked debate and controversy.
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When requested about his preferences of DOGE over Bitcoin, Musk claimed that “although” the previous was created as a joke it’s superior to BTC on transaction quantity, and functionality. In his view, the meme coin can also be cost-efficient versus the “excessive worth” customers must pay for utilizing the Bitcoin community.
Furthermore, the Tesla govt believes Bitcoin has been unable to adapt to present occasions the place “higher web connections” make lengthy synchronization occasions and “small” block measurement out of date. He referred to those Bitcoin attributes as “comedian” and added the next addressing one among this cryptocurrency’s fundamental options, its mounted provide:
I feel there’s some worth to having a lineal improve within the quantity of forex that’s generated (…). If a forex is simply too deflationary, if a forex is predicted to extend its worth over time there’s reluctant to spend it (…)
Musk’s replies have been filled with gaps for some customers that took the time to exhibit the counter argument within the Bitcoin versus DOGE debate. Vijay Boyapati, writer of “The Bullish Case for Bitcoin”, took to Twitter for this process and to level out the error made by the Tesla govt.
Speaking concerning the block measurement for Dogecoin, Boyapati mentioned that though it’s actually bigger than Bitcoin, the latter has “orders of magnitude extra transactional throughput” through the second layer resolution Lightning Community. Traditionally, the BTC neighborhood has opposed any change to the community’s block measurement.
That is as a result of numbers of points that would altered the community and even threatened its existence. In that sense, Boyapati mentioned:
Scaling on the blockchain layer is essentially flawed because it crucially undermines decentralization and protocol immutability.
What Elon Musk Missed On The Bitcoin v. DOGE Debate
Boyapati referred to Musk’s different causes to help Dogecoin over Bitcoin. Addressing DOGE’s low transaction price, Boyapati claims it’s as a result of low community utilization and never on account of a superior design. One thing related occurs to Bitcoin community charges.
In occasions of bullish worth motion, the Bitcoin community’s charges often are likely to comply with the worth. The other occurs in prolong intervals of downtrend. In reality, the primary half of 2021 noticed transactions charges of over 50 sats/vB in opposition to todays 11 sat/vB, in accordance to Mempool.house.
Boyapati hit the nail on the BTC financial coverage and block measurement, as he claimed builders would turn out to be “central bankers” if they’re able to alter these traits. Bitcoin has surpassed the $1 trillion in market cap and worldwide adoption as a result of folks can confirm its immutability, Boyapati added:
The issue right here is that Elon believes cash should at first be a medium of trade. Relatively, cash at all times evolves by means of phases the place it first turns into a retailer of worth THEN subsequently a medium of trade.
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As of press time, BTC trades at $47,940 with a 2.4% loss previously day.