Tesla Inc. TSLA CEO Elon Musk in response to a tweet that detailed why Dogecoin (DOGE) price could rise, suggested early Monday that the joke cryptocurrency being “inflationary,” but not “meaningfully” so, gives it an advantage over Bitcoin (BTC).
What Happened: “Doge appears to be inflationary, but is not meaningfully so (fixed # of coins per unit time),” Musk said. “Whereas, BTC is arguably deflationary to a fault.”
“Transaction speed of Doge should ideally be a few orders of magnitude faster,” the billionaire entrepreneur added.
Musk has been on a tweet spree in recent days over Dogecoin, and others including Snoop Dogg, Kiss frontman Gene Simmons, and YouTuber MrBeast have joined the fray.
When a Twitter user pointed out that 20 addresses hold about 50% all Dogecoin and one address alone holds 36.8 billion Dogecoin, Musk said, that "does seem a bit high."
Why It Matters: Dogecoin has the second-highest circulating supply of all cryptocurrencies at the moment, with 128.27 billion coins — next only to that of BitTorrent (BTT).
The cryptocurrency had an uncapped supply initially, until co-founder Jackson Palmer decided otherwise in 2014. Even so, 5 billion new dogecoins can be created every year. In contrast, Bitcoin has a capped supply of 21 million coins, 18.6 million of which are already in circulation.
Dogecoin traded 25% higher at $0.0718 at press time on Monday. The cryptocurrency hit an all-time high of $0.0814 on Sunday.
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