Back in July 2021, Tesla CEO Elon Musk confirmed publicly during a conference that he owns a few cryptocurrencies, such as Bitcoin, Ethereum and Dogecoinbut he has repeatedly favored the latter in interviews and posts on social media.
The 50-year-old entrepreneur did explain last year the main reason behind his decision to support Dogecoin after repeatedly mentioning in the past that he collaborated with its developers.
“Lots of people I talked to on the production lines at Tesla or building rockets at SpaceX own Doge,” Musk wrote on Twitter.
“They aren’t financial experts or Silicon Valley technologists. That’s why I decided to support Doge – it felt like the people’s crypto.”
Back in May 2021, Musk did not hesitate to joke that Dogecoin could actually become a reserve currency in the future.
“The point is that Dogecoin was invented as a joke, essentially to make fun of cryptocurrency,” he told TMZ.
“Fate loves irony. What would be the most ironic outcome? The currency that started as a joke in fact becomes the real currency. To the moon!”
Elon Musk reveals reasons behind support for Dogecoin
Just a couple of months ago, Musk said in an interview he gave to Time Magazine that he would favor the introduction of Dogecoin as a transactional currency over the more popular Bitcoin.
“Fundamentally, Bitcoin is not a good substitute for transactional currency,” Musk said.
“Even though it was created as a silly joke, Dogecoin is better suited for transactions.
The transaction volume of Bitcoin is low, and the cost per transaction is high. “
“At least at a space level, it is suitable as a store of value. But fundamentally, Bitcoin is not a good substitute for transactional currency.
“The total transaction flow that you do with Dogecoin in transactions per day has a much higher potential than Bitcoin.”