Dogecoin over Bitcoin: Elon Explains Why it is always Memecoins

Dogecoin is one of the most widely accepted cryptocurrencies by merchants, companies, and crypto payment processors.

Over the past year, Tesla founder and entrepreneur Elon Musk has been one of the biggest influencers when it comes to crypto. When Bitcoin came into existence in 2009, Musk showed no interest in getting involved with the virtual currency. Then suddenly in February 2021, Elon Musk publicly announced that Tesla purchased US$1.5 billion worth of Bitcoin. This endorsement resulted in the further popularization of cryptocurrencies, at a time when people were trying to discover new ways to make financial returns – which the COVID-19 pandemic ironically also contributed towards. A former fan of Bitcoin, Elon Musk says that Dogecoin has an advantage over Bitcoin and other cryptocurrencies and believes it to be the most promising cryptocurrency for trading. Bitcoin transactions have a lower transaction value and an increased cost per transaction. It is appropriate as a value store, at least on a spatial level. Elon Musk, however, said that Bitcoin is fundamentally not a good replacement for transactional currency.

Memecoins are digital tokens inspired by popular social media jokes, sarcasm, puns, and memes. According to Coinmarketcap, there are over 130 memecoins in circulation today. Unlike major cryptocurrencies that are created with a purpose, memecoins don't have a goal and specific reason. While mainstream digital tokens are born to enhance blockchain technology, promote decentralization, and shield transactions from manipulation, memecoins like dogecoin and Shiba Inu just exist to entertain investors. Comparatively, memecoins are way too volatile than the actual cryptocurrencies as they lead to sudden growth and fall in a short period. Since mainstream virtual tokens have had the upper hand for a long time, we failed to notice the growth of memecoins on the sideline. In 2021, the joke-theme cryptocurrencies have performed far beyond anybody's anticipation and are at the bonnk of outperforming major cryptocurrencies.

Dogecoin is one of the most widely accepted cryptocurrencies by merchants, companies, and crypto payment processors. You can pay with DOGE for online services, computer games, travel, buying clothes, to buy cars, and even houses. Elon Musk recently announced his Boring Company will accept Dogecoin as payment for rides on its Las Vegas transit system, Loop. You can already fill up a Tesla using Dogecoin at select supercharging stations.

A growing community of holders: One of the major advantages of dogecoin is that it has a growing community of holders and supporters. Cuban and Mark once stated that its growing community of users makes it a suitable medium for exchange. One of the primary reasons for its rising community support is that its investors use it as an absolute value. These investors are also very active on social media platforms and share memes based on the crypto as a part of its promotion.

Decentralized exchange compatibility: DOGE can be transacted and traded on decentralized exchanges. Especially, the Ren project has enabled it to work on the Ethereum blockchain platform, and also access the decentralized finance network. This indicates that DOGE is compatible with the emerging decentralized finance movement within the crypto market.

Easy transaction: Dogecoin shares several similarities with BTC, which means it provides certain benefits that are similar to Bitcoin. The crypto's coding is also quite similar to Bitcoin, which makes it secure and easier to transact. Also, there are no mining limits on Dogecoin. This provides the investors with the unlimited opportunity to trade Dogecoin, be it a short-term or long-term investment.

DOGE's listing in the stock exchange: Since its inception, some of the best stock and crypto exchange platforms have listed Dogecoin, including eToro, which is one of the biggest multinational crypto brokerages. It is listing in eToro has substantially increased the clients' demands to trade Dogecoin. The platform has also attributed to more traffic from clients who want to trade DOGE.

Dogecoin's unique market positioning: DOGE's inflationary status, its unique mining feature, and ties to Litecoin are considered unique by several investors. But because it was an early crypto entrant, Dogecoin's mining model is based on the proof-of-work, which means complex computational problems must be solved to validate transactions across the blockchain.

In conclusion, Dogecoin might not be bigger in terms of market cap but when it comes to popularity, Bitcoin stands no chance.