In a recent tweet by the Tesla CEO, he is again seen extending support to Dogecoin over Bitcoin and Ethereum.
Business magnate and entrepreneur Elon Musk has again extended his support to Dogecoin (DOGE) over Bitcoin and Ethereum. In a recent tweet by the Tesla billionaire, he is seen reinforcing the scalability of the meme-based currency to take over the world.
The tweet was meant to be a reply to Youtuber Matt Wallace’s Twitter post on the upcoming Dogecoin update.
BTC & ETH are pursuing a multilayer transaction system, but base layer transaction rate is slow & transaction cost is high.
There is merit imo to Doge maximizing base layer transaction rate & minimizing transaction cost with exchanges acting as the de facto secondary layer.
— Elon Musk (@elonmusk) July 9, 2021
Wallace, a Dogecoin investor, claimed that the newest update would place the meme-currency at par with its other currency rivals. The founder of SpaceX Musk cautioned his followers of the inability of Bitcoin and Ethereum to be fast and inexpensive blockchain networks. According to Elon Musk, there is a standard set by Doge for optimizing the base layer exchange rate and minimizing transaction cost. With the transactions performing as the de facto secondary layer, Doge can achieve low costs at a relatively higher speed. Attacking Bitcoin and Ethereum crypto-assets, Musk also expressed his dissatisfaction for their ideal of chasing multilayer transaction systems, when their base layer is incompetent.
With this post, Musk has reassured the followers of his revered support for Doge. The intensified engagement by the billionaire for Doge led to a Snowball effect this year. This was followed by the amplified adoption of the currency, propelling the asset’s price to a brand new high. However, ever since the effect, the Shibu-Inu-inspired currency has seen a decline in people’s intrigue, leading to the price tumbling down to 70% of its zenith.
Ever since its inception, Bitcoin has received intense scrutiny owing to its lack of development and innovation. The dearth of updates in the system has led to people resorting to newer and much more viable crypto-assets. The only advantage Bitcoin holds is credited to the fact that it was the first cryptocurrency to hit the market. Since a huge amount of money is invested in keeping the currency around, it is said to still be in circulation. Ethereum, on the other hand, is seen as a tough competitor to Bitcoin, with its inclusive technology that supports innovation.
Luckily for Bitcoin, an upgrade called taproot is said to be able to settle a few of its scaling issues. The Taproot upgrade for Bitcoin will enable smart contracts to operate competently, at low prices. Presently, the smart contracts are functional only on the Ethereum Network because of their impressive efficiency. With this upgrade, Bitcoin can uplift and consolidate itself with the prevailing finance.