It is quite a known fact that Dogecoin is extensively supported by the Tesla and SpaceX CEO, Elon Musk, even after going through several lawsuits and allegations of manipulating the price of the token for personal benefits. But Elon continues to support the crypto and indicated that he is still very confident about the future prospects of Dogecoin. In a recent interview, Elon Musk talks about digital assets and his love for the memecoin, where he claims about 'mainly' supporting Doge. Elon asserts that the primary reason why he prefers Dogecoin over other cryptocurrencies is the concept behind it.
Despite being considered a coin, only derived out of a joke, Musk asserts that Dogecoin has several practical applications, also compared to Bitcoin, Doge has a higher transactional capability. While BTC transactions take around 10 minutes to complete, Dogecoin only takes 60 seconds to perform the same task. However, several persistent downsides of Doge might trigger Elon to not support the crypto for a long time.
Dogecoin competitors are experiencing several advancements which are making other cryptocurrencies more popular among investors. Doge's lack of a supply cap is one of the biggest disadvantages of crypto. It is mainly because cryptocurrencies with no supply cap are unideal assets that act as perfect hedge assets against inflation. Besides, its infinite mining will also eventually require more expansive blockchain mining activities. The crypto also has relatively poor technical support despite its growing community of users and supporters. Its development team is not as big as Bitcoin, Ethereum, and Cardano, which is why its developments are mostly delayed.
Nevertheless, over the past years, Elon's continued support has definitely worked its charms in making Dogecoin one of the most popular cryptocurrencies in the market. Earlier, he also hinted that he might integrate Doge payments into Twitter, before abandoning the Twitter deal altogether. For now, Elon still continues to believe that meme coins have more potential to become a legit currency than other major cryptocurrencies.
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