Despite the fact that most of the hype surrounding Dogecoin (DOGE) has died down, Tesla CEO and multi-billionaire Elon Musk continue to provide support for the ‘meme’ cryptocurrency. Many continue to remain puzzled regarding this support and believe that his decision to support this ‘joke’ crypto and ceasing support for Bitcoin (BTC) has more to do with his own personal agenda than anything else.
Apart from constantly talking about it on Twitter and social media, Elon believes that it is important to support the upcoming proposal for Dogecoin, and he had also recently offered his thoughts as to how the cryptocurrency’s digital payment system can be improved.
‘Dogecoin needs to be faster’ according to Elon
According to the billionaire, if the altcoin is serious about wanting to stay as a top contender in the crypto market, then it would have to develop a much faster and relatively less complex base layer so that various other exchanges may be able to work atop Dogecoin. If this strategy is implemented, then the cryptocurrency’s network may even become superior to that of Ethereum (ETH) and Bitcoin (BTC) itself, in Elon’s opinion.
This strategy is also brought forth as a result of Musk wanting Dogecoin to maximize its transaction rate at its base layer and also greatly reduce the transaction cost at the same time, which will help the altcoin tremendously, according to the billionaire. He added that the exchanges would then be able to serve as the second layer. Furthermore, he believes that this could work because both ETH and BTC are focusing on multi-layered transaction systems, wherein the transaction cost of the base layer will be much higher, and the rate will be considerably slower by comparison.
Comparing DOGE to Visa
The Tesla CEO was asked about whether he thinks DOGE’s network shall be able to compete with the likes of Visa’s network when it comes to transaction speeds, to which Elon simply replied that there is no need for Dogecoin to have such a speed, to begin with. He stated that reaching Visa’s speed is not a requirement nor should it be a goal, mainly because the regulated exchanges shall be acting as the second layer, as previously mentioned. He nevertheless did agree that it is generally a good idea to have higher transactions speeds anyway and that costs should certainly be lowered.
Not everyone agrees with Elon, however, as Willy Woo (an on-chain analyst) has rejected the billionaire’s thesis and believes that Musk’s intentions will most likely end up forcing the world to return to a state of fiat dependency.