Bitcoin and cryptocurrencies have surged this week after two technology giants signaled their support for crypto (subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and discover crypto blockbusters poised for 1,000% gains).
The bitcoin worth has added nearly 10% during the last week, helped by a hotly-anticipated live discussion on bitcoin and crypto between Tesla billionaire Elon Musk and Twitter’s Jack Dorsey—with the meme-based dogecoin and the second-largest cryptocurrency ethereum arguably the event’s surprise winners.
Now, because the dogecoin worth nears 20 cents per doge token after crashing under the psychological level earlier this month, Musk has shared a dogecoin idea that proclaims the memecoin is not a speculative asset however reasonably “dogecoin is cash.”
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“I am attempting to let you know dogecoin is cash,” the meme, shared by Musk on Twitter, reads; a twist on a well-liked Matrix film quote that asks whether or not dogecoin might make somebody “some huge cash.”
Musk’s tweet briefly despatched the dogecoin worth over 20 cents per doge token on common U.S. crypto alternate Coinbase—which added dogecoin support just last month—nevertheless it shortly fell again, buying and selling consistent with at the moment’s more-or-less flat bitcoin and cryptocurrency market.
After hovering to over 70 cents in Might, riding a Musk and influencer-fueled rally, the dogecoin worth has crashed nearly 75%. Nonetheless, dogecoin’s nonetheless up a staggering 6,000% on this time final yr as a result of speculators piling into the Shiba Inu dog-based cryptocurrency.
This week, talking in the course of the Crypto Council for Innovation’s ₿ Phrase occasion, Musk elaborated on ideas that had previously been floated to upgrade dogecoin via ethereum to “max transaction charges and decrease transaction prices.”
“There could also be some advantage in combining one thing like ethereum and dogecoin,” Musk mentioned, revealing he owns some ethereum tokens along with his bitcoin and dogecoin.
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“Bitcoin by itself merely can’t scale to change into the financial system for the world at base layer,” Musk mentioned, arguing bitcoin will “wrestle to change into peer-to-peer money” with out the adoption of a second layer community.
“There’s some advantage in contemplating one thing that has larger max transaction price and decrease transaction price and seeing how far you may take a single-layer community with exchanges appearing as a de facto second layer,” Musk mentioned. “I feel you possibly can take that additional than individuals notice and as bandwidth will increase over time latency decreases.”
An extended-time supporter of dogecoin, Musk has this yr totally embraced the considerably satirical cryptocurrency that was created in 2013 as a “joke,” issuing requires upgrades and promising his rocket firm SpaceX will put a “literal dogecoin on the literal moon.”
Throughout this week’s on-line chat between Musk, Twitter’s Jack Dorsey and Ark Make investments’s Cathie Wooden, it was additionally revealed SpaceX has joined Tesla in holding bitcoin, although Musk did not say how a lot.