Picture of gold bitcoins on top a circuit board

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 be cost-efficient versus the “excessive value” customers have to 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present occasions the place “higher web connections” make lengthy synchronization occasions and “small” block dimension out of date. He referred to those Bitcoin attributes as “comedian” and added the next addressing certainly one of this cryptocurrency’s primary options, its fastened provide:

I believe there may be some worth to having a lineal improve within the quantity of foreign money that’s generated (…). If a foreign money is just too deflationary, if a foreign money is anticipated to extend its worth over time there may be reluctant to spend it (…)

Musk’s replies had been filled with gaps for some customers that took the time to display the counter argument within the Bitcoin versus DOGE debate. Vijay Boyapati, creator 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 dimension for Dogecoin, Boyapati mentioned that though it’s the truth is bigger than Bitcoin, the latter has “orders of magnitude extra transactional throughput” through the second layer resolution Lightning Community. Traditionally, the BTC group has opposed any change to the community’s block dimension.

That is because of the numbers of points that might altered the community and even threatened its existence. In that sense, Boyapati said:

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 assist Dogecoin over Bitcoin. Addressing DOGE’s low transaction value, Boyapati claims it’s because of the low community utilization and never resulting from a superior design. One thing related occurs to Bitcoin community charges.

In occasions of bullish value motion, the Bitcoin community’s charges often are inclined to observe the value. The alternative occurs in lengthen durations of downtrend. Actually, the primary half of 2021 noticed transactions charges of over 50 sats/vB in opposition to todays 11 sat/vB, in line with Mempool.house.

Boyapati hit the nail on the BTC financial coverage and block dimension, 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 firstly be a medium of alternate. Moderately, cash at all times evolves by means of levels the place it first turns into a retailer of worth THEN subsequently a medium of alternate.

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As of press time, BTC trades at $47,940 with a 2.4% loss previously day.