In a recent tweet, Tesla CEO Elon Musk reaffirmed his support for Dogecoin, arguing that the Bitcoin spoof had the potential to become a currency.
Musk has referred to the meme coin as “people’s crypto” to emphasise its broad appeal.
Dogecoin is a viable currency because of its inflationary process, which pushes individuals to spend more. Because the meme coin isn’t a store of value, people are unlikely to hoard it. According to Musk, Bitcoin, on the other hand, is deflationary money, making it “not a good substitute” for transactional currency. However, Musk has already expressed scepticism about Dogecoin’s ability to supplant conventional currency.
According to Robinhood CEO Vlad Tenev, Dogecoin is a considerably cheaper alternative to established card networks. The meme coin’s block time must be decreased to ten seconds for this to happen. In the meantime, Dogecoin has dropped more than 91% from its all-time high, which was reached a year ago. Following Twitter’s agreement with Musk, the meme cryptocurrency enjoyed a temporary price increase. However, along with the rest of the market, the meme cryptocurrency plummeted. Its price fell below 10 cents earlier this week. In the tweet that caught Musk’s attention, Billy Markus, the joke cryptocurrency’s co-founder, said he liked the joke cryptocurrency because “it recognises it is ridiculous.”
Half-jokingly, the centibillionaire prophesied that Dogecoin would become the world’s currency. According to the controversial entrepreneur, it would be “the most interesting outcome.”