After a tweet from the head of Tesla and SpaceX, the cost of Dogecoin in two hours increased by 14%, to $0.22.
As Crypto-Auditor notes, Dogecoin’s price jumped 14% in two hours to reach $0.22 after the altcoin was mentioned on Twitter by Tesla and SpaceX CEO Elon Musk. He commented on a post by Dogecoin co-developer Matt Wallace, which stated that altcoin will become one of the most popular digital coins after the upcoming update. Musk argues that this will be Dogecoin’s advantage as developers strive to increase the speed of basic transactions and reduce transaction costs.
Reminder: The Dogecoin update is coming soon! It will position Doge perfectly to become one of the most used currencies in the world.
— Matt Wallace ⚠️ (@MattWallace888) July 9, 2021
The businessman also criticized Bitcoin and Ethereum. According to him, the transaction speed of these cryptocurrencies is low and the transaction fees are high. Not all Twitter users agreed with Musk’s opinion.
BTC & ETH are pursuing a multilayer transaction system, but base layer transaction rate is slow & transaction cost is high.
There is merit imo to Doge maximizing base layer transaction rate & minimizing transaction cost with exchanges acting as the de facto secondary layer.
— Elon Musk (@elonmusk) July 9, 2021
For example, Peter McCormack, a well-known presenter of the podcast What Bitcoin Did in the crypto community, drew an analogy with the space industry and suggested that a businessman create space rockets out of cardboard, thus reducing assembly speed and costs. McCormack noted that the process of creating space transport is slow and expensive.
At the end of June, Musk supported the proposal to update the Dogecoin network. It states that the average transaction fee on the altcoin blockchain should be reduced by 100 times. The businessman also explained why Dogecoin cannot be mined on the Tesla supercomputer.