Elon Musk is the Person of the year. He won the prestigious award on Monday. The space entrepreneur had contributed to the growth of digital assets in the year by driving controversial sentiments. He gave a piece of his mind during an interview session with TIME.
Early in the year, Elon Musk added to Dogecoin’s rally with his opinions. His comments drove the value of Doge to the space, where investors raked in more than 1000% profits. No one ever thought that a meme-inspired project could offer any significant value. But that was precisely what happened. The Billionaire entrepreneur says he holds significant DOGE investments. He also dipped his hands into other digital assets like Bitcoin and Ethereum.
The Tesla founder prefers Dogecoin to Bitcoin. He also thinks the meme-cryptocurrency has better transactional value than the rest. He shed more light on Bitcoin as a medium of exchange, saying the digital asset lacks the substance to replace fiat. In his words, he believes Bitcoin cannot replace transactional currency.
On the other hand, he pulled support for Dogecoin, saying that the silly project that later turned out to be valuable might substitute payment transactions. He stressed the meagre transaction volume attached to Bitcoin, including its cost per transaction, as two primary reasons for Dogecoin’s relevance.
While he was asked about the transaction value of both digital assets, the serial investor dragged Bitcoin in the muds while raising Dogecoin to the standard of gold. However, he believes Bitcoin offers something more than a transactional asset. He thinks Bitcoin is suitable for storing value. This concept, although simple, is the usual chagrin regulators and lawmakers struggle to deal with as the market capitalization of crypto-asset nears $3 trillion.
Dogecoin Has A Transactional Value
In contrast, he feels Dogecoin motivates spending, which is good for business. Dogecoin is unlike Bitcoin, a store of value and only that. Others think that Elon’s comments are far-fetched; Bitcoin faithful see the value in Bitcoin as a store of value. However, countries have taken Bitcoin as a transactional currency more than a store of value. An example is El Salvador. The small country approved Bitcoin, now used as a legal tender. For a country like El Salvador, the government saw potential in Bitcoin and has formalized arrangements as a substitute for fiat. Other nations will likely adopt Bitcoin as a legal tender, which will increase daily transactions of BTC from now on.
Cryptocurrency Will Never Replace Fiat
The crypto market suffered a sharp downtrend, where Bitcoin dropped significantly. Other digital assets have been seeing red, and it looks like no green is insight. The Tesla capitalist believes the cryptocurrency market will become bullish. He thinks more institutional investors will come into the market and increase its value. He also believes innovations will continue to create new products that will increase the value of the digital ecosystem. However, he is confident that digital assets will never become a substitute for fiat.