Elon Musk recently defended Dogecoin (DOGE) via social media once again, following his accusations of seeing both Bitcoin (BTC) and Ethereum (ETH) as inferior and comparatively ‘slower’ to DOGE when it comes to the two cryptocurrencies’ respective base layers. Elon had then suggested that DOGE be considered a viable alternative path.
‘Costs high and rates slow’
Mark Wallace, a prominent YouTuber, had been responsible for expressing the initial excitement for a new DOGE update scheduled to be released in the near future. Elon had then commented on this update by saying that both Ethereum and Bitcoin are going after a transaction system that is ‘multi-layered, wherein he was essentially talking about the Lightning Network along with various other layer-2 scaling solutions. He then added that these types of coins tend to maintain high costs and slow rates regarding ‘base layer traction’.
Moreover, Elon had stated that Dogecoin might thus be the preferable alternative as it is attempting to successfully maximize the transaction rates for the base layer while simultaneously minimizing the costs of the transactions. Additionally, Dogecoin is utilizing crypto exchanges to act as the second layer.
Elon believes that transaction fees ‘have to be lowered’
Patrick Lodder, Dogecoin’s developer, had presented a proposal for the ‘meme’ crypto in the past, and Elon has since stated that it is of the utmost importance that this proposal is thoroughly supported. The main changes that were put forth by Patrick were concerning the transaction fees and how a reduction must be administered if DOGE wants to remain as top crypto for the future.
Furthermore, Partick had stated that as of right now, there is a 1 DOGE transaction fee currently put in place. However, many investors believe this to be quite steep now due to Dogecoin’s perceived value at the moment. He also believes that on-chain transactions are being disincentivized for no reason. This had therefore persuaded investors to keep DOGE on the various centralized trading platform rather than in a wallet due to the hesitation regarding the cryptocurrency’s perceived value loss.
DOGE had managed to record an all-time high price of $0.74 earlier on in 2021 before it began crashing down like so many others in the market. Currently, the price is $0.21, hardly what investors would want to be given how high the altcoin had managed to jump not too long ago.