Tesla CEO Elon Musk believes that Bitcoin (BTC) is not equally skillful for everyday payments as the meme-based cryptocurrency Dogecoin (DOGE).

Musk compared the earth's largest cryptocurrency, Bitcoin, to DOGE in a Fourth dimension Mag interview shortly after beingness named Fourth dimension's 2022 Person of the Twelvemonth.

"Bitcoin is not a good substitute for transactional currency. Even though it was created as a airheaded joke, Dogecoin is improve suited for transactions. The full transaction menses that you lot do with Dogecoin, like transactions per day, has much higher potential than Bitcoin," Musk said.

The Tesla CEO emphasized that Bitcoin is more suitable as a store of value, which is why its investors prefer to agree it rather than sell it or utilise it for payments. "The transaction volume of Bitcoin is depression, and the cost per transaction is high," Musk noted.

On the other hand, Dogecoin is not that adept every bit a store of value, Musk hinted, noting that the cryptocurrency is "slightly inflationary." Nevertheless, this "encourages people to spend, rather than sort of hoard as a store of value," he stated.

Bitcoin, the earth'due south virtually-valued cryptocurrency so far, was launched back in 2009 as a "peer-to-peer electronic greenbacks organisation" with a limited total supply of 21 1000000 BTC. In contrast, DOGE has an space supply later the money switched to provide an uncapped supply later hitting a supply limit of 100 billion coins in mid-2015.

Some industry figures such as Ripple CEO Brad Garlinghouse accept blasted Dogecoin for its alleged "inflationary dynamics" and unlimited supply.

Despite Musk criticizing Bitcoin every bit a payment tool, his electrical vehicle firm, Tesla, briefly adopted BTC as a payment method earlier this twelvemonth. The official reason for dropping the payment option was the company's concerns regarding the "rapidly increasing use of fossil fuels for Bitcoin mining and transactions." Tesla still continues to hold a significant amount of Bitcoin on its balance sheet after purchasing $ane.5 billion in BTC in February.

A number of global companies like Twitter have been actively adopting BTC every bit a payment selection by implementing the Lightning Network to decrease transaction costs.

Related: Bitcoin transaction fees are down by over 50% this year

Dogecoin doesn't announced to have a much bigger transactional volume than Bitcoin, co-ordinate to on-concatenation data. At the time of writing, Bitcoin'southward daily transaction volume amounts to $31 billion, or 3.5% of its market capitalization, according to data from CoinGecko. Dogecoin'southward daily transactions are worth $970 one thousand thousand, or 4.6% of its marketplace cap.

DOGE has emerged every bit one of the topperforming cryptocurrencies in 2022, much of which was manifestly associated with Musk's active endorsement on social media.