It should be noted that Elon Musk regularly mentions Dogecoin, and does so in a persistent manner. For example, in early December Coindesk representatives published an article about too high commissions in the Etherium network, due to which novice investors cannot take advantage of the decentralized finance industry based on this blockchain. Musk responded with just one word.

That said, so far DOGE does not seem like a good asset to invest in. Specifically, the cryptocurrency has fallen 31 percent in the past thirty days, and the coin is even 75 percent behind its all-time high price of 73 cents. Accordingly, the bubble in the case of Dogecoin can really be considered burst – at least temporarily.

Dogecoin exchange rate chart from the first of January 2021

However, Musk isn’t stopping that. He continues to promote the cryptocurrency – and in the most unexpected interviews.

Why Dogecoin rose

Here’s one of the Tesla executive’s quotes, published by Cointelegraph. In it, the billionaire talks about why he doesn’t think BTC is a good medium for making payments. On top of that, Musk recalled his role in the creation of PayPal, which makes him understand the device of money.

Bitcoin is not a good substitute for currencies for transactions. Dogecoin, on the other hand, is best suited for payments even despite the fact that the project was originally created as a joke. The total number of transactions with DOGE is much higher than that of Bitcoin.


In other words, Elon believes that Bitcoin is not suitable for transactions on a daily basis - due to low transfer speeds and high fees, among other things. We've clarified the actual data: yesterday, the average fee for interacting with the Bitcoin network was $1.98.

Graph of the average commission on the Bitcoin network

However, it is important not to forget that on top of the main Bitcoin network there is also the Lightning Network, which allows for almost instant payments in BTC. Most importantly, the commissions in this case do not exceed a cent, which means that here the first cryptocurrency is quite suitable for paying for goods, services and other trivialities. It is on the basis of the Lightning network that Salvadorans use Bitcoin at McDonald’s, Starbucks and other popular establishments.

However, BTC has its own sphere of application. It’s capital accumulation, Musk believes.

The number of transactions with BTC is relatively low, but their total amount is very high.

That is, the entrepreneur hints that high net worth holders are actively using Bitcoin as a means of capital accumulation and are happy to transfer large amounts of funds.

At the same time, holding investments in DOGE for a long time is hardly a good idea. After all, altcoin is quite volatile and has no maximum supply limit, which means that there can be an infinite number of coins in circulation, which traditionally is not a good feature of the asset. Bitcoin, on the other hand, is limited to 21 million coins in circulation. On top of that, this week miners have just mined 90 percent of all bitcoins from their maximum amount.

Elon Musk on the cover of TIME

Here’s a recording of a conversation with the entrepreneur in which he shares his take on the situation in the digital asset market. We recommend you to listen to it if you can understand English.

Elon also announced an interesting initiative inside Tesla – the company will soon start selling their own merchandise for DOGE. The giant will introduce this option and then “see how it goes”.

The billionaire’s new mention of the altcoin sparked a positive reaction among traders as DOGE soared from $0.156 to $0.21 in just a couple of hours on December 14. On the chart, the asset’s behaviour is more than visible.

Dogecoin price over the last 7 days


We think Bitcoin's criticism is unlikely to benefit Ilon Musk's reputation within the cryptocurrency community. However, it was seriously damaged back in May 2021, when the entrepreneur took it upon himself to criticise the energy-intensive nature of the BTC mining niche. Apparently, Musk's point of view can no longer be changed, and he will clearly remain a fan of DOGE. Accordingly, the entrepreneur will continue to praise the cryptocurrency despite its weak fundamentals as a crypto project.

What do you think about this? Share your opinion in our Millionaire Crypto Chat. We’ll talk about other topics related to the world of decentralisation and digital assets there as well.