Elon Musk smashes bitcoin’s monopoly and proposed a digital currency dogecoin
Elon Musk & Bitcoin
A cryptocurrency is just a form of digital or virtual currency we already use digital currencies in the form of dollars, Euros, and other forms of currencies that we use online to buy goods or services.
Cryptocurrency is secured by something called cryptography.
Cryptography is just how we make communications private and it is a kind of encrypted ting but a little bit more complex. Blockchain is the really advanced technology that is used to run different cryptocurrencies. It works on the decentralized mechanism that is used to manage or store transactions. Bitcoin, Ethereum, and Dogecoin are an example of cryptocurrencies.
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Bitcoin is the very first and most prominent cryptocurrency in the world.
It is a decentralized cryptocurrency that is used to buy or sell directly without any third parties like banks or government authorities.
The basic idea behind bitcoin is to build a strong decentralized mechanism and demolish the monopoly of centralized authorities. But now bitcoin facing a
downfall because of its high consumption of fuels for mining and transactions.
In late January,
and Tesla’s CEO (TSLA) delivered the amount of bitcoin surging 20%
after he included ‘#bitcoin’ into his Twitter account. But last week, bitcoin dropped over 10 percent following Musk tweeted. In discussions with Twitter users across the weekend, Elon
Musk seemed to indicate Tesla had or might sell the rest of its $1.5bn bitcoin investment.
Tesla’s CEO Elon Musk had previously this week criticizing the amount of energy necessary for mining Bitcoin after his decision to stop using Bitcoin to market his electric automobiles.
“We are concerned about rapidly increasing use of fossil fuels for bitcoin mining and transactions,
especially after coal, which has the worst emissions of any fuel,” Elon Musk said on twitter.
Tesla’s boss had stated that the corporation would consider different cyber currencies which utilized lower as much as one percent of bitcoin’s energy each trade, for purchasing cars. His Twitter conversation now indicates that Dogecoin could be the prime candidate to replace Bitcoin.
He comes up with another tweet that is particularly backing of dogecoin and its speed. Elon Musk explained on Twitter, Dogecoin speeds up its adding a new block up to ten times, the size of the block in a blockchain also increases by ten times & drops commission rates up to 100 times. Subsequently, it wins hands down.
He added that reduced prices and higher volume are
essential to developing the currency for all over the world, this is again supporting Dogecoin.
Due to bitcoin’s environmental impact, Musk continued its support to Dogecoin. But on the other hand, the price of Bitcoin and Dogecoin in addition to different cryptocurrencies has dropped during the past couple of days. Bitcoin cost has declined under the $45,000 mark, almost
$20,000 off. By the time of writing it is available now for $44,996.
Musk has claimed that Bitcoin isn’t quite as de-centralized as people think it to be.
Bitcoin: Can it truly as decentralized as you believe?
Says ‘No’ by Elon Musk and he explained “Bitcoin is really highly concentrated and centralized, with controlled by a couple of significant mining
companies,”
Dogecoin is a digital currency, such as Bitcoin or even Ethereum–even though it is really different than either of those well-known currencies. It was originally made at least in part as a joke for crypto fans and took its name from the popular meme.
Despite this odd source story, it’s exploded in popularity in 2021–by the time of writing, Dogecoin has come to be the 5th largest
digital currency by market cap of $63 Billion.
Dogecoin isn’t any joke, with a great surged in worth and gained greater than 5,000% in 2021. Elon called meme coin as the people’s coin and guaranteed he will take the doge coin into the
moon.
Comparison between Bitcoin and Dogecoin
Dogecoin includes a couple of critical differences in contrast to Bitcoin. First of all, it is faster and easier to allow miners to finish their transactions, making Dogecoin more effective due to its transaction payments procedures. Bitcoin takes almost ten minutes to confirm a new block in a
blockchain. On the other hand, dogecoin confirms within 60 seconds.
One more substantial distinction between bitcoin and dogecoin is that Dogecoin has no limit to mine.
On the other hand, miners can’t mine bitcoins more than 21 million which means it restricts the miners to make an unlimited amount of coins.
Due to this limitation the bitcoin infrastructure enforced miners to work hard for mining a new coin.
It takes miner’s most of the time and to some level, it will help guarantee the potential of bitcoin is to raise and hold its worth
with the passage of time.
Elon Musk: A Big fan of Cryptocurrency
Despite the controversy of bitcoin, Elon Musk is still a big supporter of cyber currencies because he believes this technology will definitely change the entire world in near future. Specifically,
Tesla’s boss fully believes in Dogecoin It could be far better than the king of crypto’s “Bitcoin”.
Significantly, Musk had on Friday reported that he’s working on Dogecoin development team to “enhance system transaction efficiency” But, it was not clear if he was speaking to improve speed, energy use, or its usability, and much more.
The Dogecoin, which was considered as a joke in 2013, climbed over 30 percent on Friday morning after Musk’s tweet. It was trading at
$0.53, having attained as large as $0.56. By the time of writing it is available now for $0.49.
Elon Musk has signaled he may think of his very own cryptocurrency in the not too distant future.
Only this could be done if Dogecoin would fail.
While reacting to some Twitter user who inquired “Why not just make a crypto from scratch that does everything you want technically and has a lot of dev support and doesn’t have a high concentration of ownership at least initially? “Musk responded on Saturday “Only if Doge can’t do it. Big pain in the neck to create another
one”
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