Elon Musk explains further why Dogecoin may be better than Bitcoin; hints at selling Tesla’s Bitcoin

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Updated: May 17, 2021 4:32 PM

Tesla chief Elon Musk’s latest Twitter duel has revealed more on why the world’s second-richest person and a Bitcoin believer till recently has suddenly turned against it.

Bitcoin, Elon MuskNailwal wants Polygon’s token to be on the top, at least right after Bitcoin and Ethereum. (Image: REUTERS)

Tesla chief Elon Musk’s latest Twitter duel has revealed more on why the world’s second-richest person and a Bitcoin believer till recently has suddenly turned against it. After having stopped Tesla Car purchases using Bitcoin last week, citing environmental concerns, Elon Musk spent his weekend replying to people on Twitter who questioned his move. Along with environmental concerns, Musk has now claimed that Bitcoin is not as de-centralised as people believe it to be. On Sunday evening, the Tesla chief also seemed to agree with a tweet suggesting Tesla would sell its Bitcoin holdings this quarter but later clarified that it has not done so already.

Bitcoin: Is it really as decentralised as you think? Elon Musk says ‘No’

“Bitcoin is actually highly centralised, with supermajority controlled by a handful of big mining (aka hashing) companies,” Elon Musk wrote, replying to a post that claimed Dogecoin was highly centralised. “A single coal mine in Xinjiang flooded, almost killing miners, and Bitcoin hash rate dropped 35%. Sound “decentralized” to you?” he added.

Why Dogecoin wins over Bitcoin

Last week, while stopping Tesla car purchases using Bitcoin, Elon Musk had said that the company would consider other cryptocurrencies that used less than 1% of Bitcoin’s energy per transaction, for car purchases. His Twitter dialogue now suggests that Dogecoin might be the frontrunner to replace Bitcoin. “Ideally, Doge speeds up block time 10X, increases block size 10X & drops fee 100X. Then it wins hands down,” he said on Twitter. He added that low fees and high volume are needed to become the currency of Earth, again favouring Dogecoin.

Tesla selling its remaining Bitcoin?

However, that was not the end of Elon Musk’s Twitter session for the weekend. Late Sunday evening the Tesla Chief brewed another controversy in the cryptocurrency world. Musk seemed to be in agreement with a Twitter post that read — “Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their Bitcoin holdings. With the amount of hate, Elon Musk is getting, I would not blame him.” To this Elon Musk replied, “Indeed”. Later on, he did clarify that so far Tesla has not sold any of its holdings in Bitcoin. Tesla had bought $1.5 billion of Bitcoin earlier this year, 10% of which was later sold by the electric car manufacturer.

Elon Musk has continued to speak in favour of Dogecoin while slandering Bitcoin for its environmental impact. However, the prices of both Bitcoin and Dogecoin along with other cryptocurrencies have fallen over the last few days. Bitcoin price has tumbled below the $45,000 mark, nearly $20,000 off its all-time high.

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