Musk: "Dogecoin is more suitable as currency than Bitcoin"

▲ Elon Musk, Dogecoin (DOGE)/AI Generated Image ©

Elon Musk re-emphasized that "Dogecoin is closer to actual currency than Bitcoin," reigniting the currency debate in the cryptocurrency market. Differences in transaction fees and inflation structure were presented as key reasons.

According to cryptocurrency media Watcher.Guru on May 12 (local time), Tesla CEO Elon Musk argued on the Lex Fridman podcast that Dogecoin (DOGE) is more suitable as a practical currency than Bitcoin (BTC). Musk cited Dogecoin's higher transaction volume and lower transfer fees compared to Bitcoin as reasons.

Musk specifically explained that Bitcoin's deflationary structure has limitations as a real payment method. He stated, "People tend not to easily spend currency expected to increase in value over time," adding, "There is a certain value in a structure where the money supply increases linearly." On the other hand, Dogecoin, based on an inflationary structure, can promote usage and consumption.

The media analyzed that these claims partly align with the cryptocurrency classification system of U.S. regulatory agencies. The U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) view Bitcoin as a 'digital commodity' with expected long-term value appreciation, while meme coins like Dogecoin are classified closer to 'digital collectibles.'

Musk has repeatedly supported Dogecoin in the past. He introduced Dogecoin for payments of some Tesla and SpaceX merchandise and has repeatedly stated in public that it is his most preferred cryptocurrency. The market evaluates that his remarks consistently influence Dogecoin investment sentiment.

However, the media reported that despite Musk's claims, Bitcoin still maintains a strong position as a store of value. Dogecoin, on the other hand, is recognized for its differentiation in terms of payment efficiency and low transaction costs.

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