Do you think Dogecoin is just a humorous concept? Think again. Elon Musk is earnestly backing this once-jokingly introduced cryptocurrency.
Elon Musk's inclination towards Dogecoin isn't something unexpected. The CEO of Tesla has been consistently vocal about his preference for this cryptocurrency during his public appearances.
On a recent podcast with Lex Fridman, Elon mentioned that Dogecoin stands out as the leading cryptocurrency when examined on a foundational level.
Elon Loves the Doge!
Moreover, Elon criticized Bitcoin, the world's top cryptocurrency, by underlining its inefficiency, indicating it to be 'comically slow in 2021.'
Dogecoin, contrastingly, boasts the advantages of minimal transaction fees, leading to a rise in transaction volume.
While some might think Elon is overstretching, there's no denying that his comments have left a mark on the cryptocurrency market and Bitcoin's valuation this year.
Elon is invested in Bitcoin, Ethereum, and Dogecoin, but earlier in the year, the Tesla CEO expressed frustration with Bitcoin over its heavy energy consumption.
In the same podcast, Elon Musk added that consumer habits contribute significantly to making Dogecoin 'better than anything else' he's observed.
Bitcoin enthusiasts prefer holding onto their Bitcoin rather than spending it. There appears to be hesitance in using Bitcoin for regular transactions.
A defining trait that earns Dogecoin considerable attention is its broad acceptance. Though many investors were initially drawn to its playful aspect, they stayed due to its ability to resonate with 'us' - the general public.
In the past, the SpaceX CEO unveiled that his endorsement of Dogecoin was linked to the realities and interests of his workforce, rather than canine enthusiasm or personal penchant.
Musk has often extolled Dogecoin over Bitcoin, asserting that the meme-inspired currency is more captivating than Bitcoin and its counterparts.
He refers to himself as 'pro doge' and believes that if Dogecoin can reduce transaction times and fees, it will inevitably outperform.
How About Other Major Coins?
If there's one thing to describe the crypto scene in 2021, it could only be termed as 'chaotic' or 'frantic.'
A flood of new players has emerged, with many reaching exceptional heights. Moreover, 2021 has also observed the growing involvement of Wall Street and prominent individuals in the sector.
Reports indicate that cryptocurrencies have sparked more curiosity this year than before, with prominent figures like Elon Musk and Jack Dorsey frequently speaking out and influencing this domain.
Bitcoin, the most prominent digital currency globally, has achieved remarkable milestones this year.
Its value surged by roughly 70%, catapulting the crypto market's total worth to 2 trillion USD. Yet, Bitcoin's future remains ambiguous because of price instability and escalating regulatory examinations.
Bitcoin's value is highly volatile, with severe fluctuations making it unpredictable. After hitting record highs, Bitcoin's market cap can dissipate rapidly, posing significant concerns for investors.
Bitcoin is deemed legal in numerous nations; however, some governments lack precise regulatory structures for this asset class or have fully prohibited Bitcoin.
In earlier times, monetary authorities and banks were powerless to control Bitcoin. Nonetheless, with time, governments have begun asserting control and steering it onto a legal path, which could potentially hinder the prospects of the virtual currency.
Lately, the NFT gaming trend, featuring games like Axie Infinity, The Sandbox, or Decentraland, has garnered immense attention.
The rise of NFT and DeFi has significantly enhanced the Ethereum blockchain. But similar to Bitcoin, high transaction fees and limited scalability are drawbacks from an investment perspective.
