Tesla CEO Elon Musk is still talking about Dogecoin’s future, discussing what the meme currency must achieve to stay relevant in the digital payments world.
This week, the tech billionaire took to Twitter to share his thoughts on how to improve Dogecoin’s digital payments system.
If Dogecoin (DOGE) aims to build a faster and less cumbersome base layer, other exchanges could work on top of it, says Musk. This strategy, according to Musk, could make the meme currency’s network superior to the networks of Bitcoin and Ethereum.
“BTC and ETH are pursuing a multilayer transaction system, but base layer transaction rate is slow & transaction cost is high.
There is merit [in my opinion] to Doge maximizing base layer transaction rate & minimizing transaction cost with exchanges acting as the de facto secondary layer.”
When asked if the DOGE network would need to be capable of settling transactions at the same speed as the Visa network, Musk argued that DOGE will not have to compete with Visa’s speed.
“It won’t need to reach Visa speed, as regulated exchanges will act as de facto second layer.
But the perfect should not be the enemy of the good – it is still good to increase base layer transaction speed & lower base layer transaction cost.”
On-chain analyst Willy Woo rejects Musk’s thesis, claiming that Musk’s DOGE plans will return the world to a fiat-dependent state.
“Remember when the US decoupled from the Gold Standard creating a new era of fiat when they ran out of gold to back it?
That’s exactly what you’re proposing with ‘regulated exchanges’ being the layer 2. If they don’t have the coins, then it’ll decouple and we’ll be back to fiat.”
Even as the markets slow down, Musk appears to still be interested in Dogecoin’s development. In late June, Musk supported a proposal that would change the fee structure and policy of the DOGE network.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/adike