Elon Musk called Bitcoin and Ethereum transactions slow and expensive

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Elon Musk criticized the Bitcoin and Ethereum blockchains for slow processing of transactions and high transaction costs. So he responded to a tweet from YouTube blogger Matt Wallace about the upcoming Dogecoin (DOGE) cryptocurrency update.

Wallace said that with the update, Dogecoin will become “one of the most widely used cryptocurrencies in the world.” The Tesla founder agreed with this opinion.

 

“BTC and ETH use a multi-tiered transaction system, but the transaction rate at the basic level is slow and the cost is high. In my opinion, there is an advantage that DOGE maximizes transaction speed at a basic level and minimizes transaction costs with exchanges acting de facto as a second tier, ”he wrote.

 

Machine learning engineer Pranay Patole noted that Dogecoin is already 15 times faster than bitcoin, and that reducing network fees and increasing block size are easy to achieve. According to him, the most difficult task is to increase the speed of generating new blocks tenfold.

The developer Udi Wertheimer proposed to implement the SegWit update solutions for the Bitcoin network in Dogecoin, which are a prerequisite for using the Lightning Network.

The Block analyst Larry Cermak pointed out Musk’s mistake, noting that cryptocurrency exchanges never worked as second-tier solutions. Wertheimer stated that they have been doing this “for a decade.”

Chermak stressed that such platforms cannot be considered second-tier networks, since the user faces the risk of interacting with a third party, and also loses privacy. In his opinion, bitcoin exchanges are more like “highly specialized sidechains”.

The vast majority of economic activity is linked to exchanges, Wertheimer said. He stated that such platforms have developed an effective method of mutual settlements, and the threat of loss of confidentiality and the risks associated with the storage of assets are present in other second-tier solutions.

 

“It’s like a terminology question. People have considered exchanges and banks as “second tier” since the earliest days of bitcointalk. Nobody told me that the definition was changed. In any case, what Elon is saying is pretty clear. There is no need for fancy experiments if everyone uses custody anyway. He is 100% right, ”concluded Wertheimer.

 

On his page, Chermak wrote that Musk understands little about the subject of the conversation, although he truly believes in what he says.

 

“Sadly, at first I really believed that Elon was aware of these issues (why not, after he invested billions ?!). But over time, as he continues to share meaningless reasoning, I am more and more convinced that this is not trolling, but simply ignorance, ”the analyst said.

 

Over the past 24 hours, the price of Dogecoin has increased by 4.4%, according to CoinGecko. At the time of writing, the cryptocurrency is trading at $ 0.21.

The rate of the imitator DOGE – the Baby Doge Coin (BABYDOGE) cryptocurrency – has grown much stronger. According to CoinGecko, over the past day, the cryptocurrency has risen in price by 24%.

The rise in asset value could also have been influenced by the message from the NASCAR racing series Brandonbilt Motorsports. On July 10, at the Atlanta circuit, driver Brandon Brown will drive a Chevrolet Camaro wearing a cryptocurrency livery.

In June, Musk backed a proposal by Dogecoin developer Patrick Lodder to lower fees on the meme cryptocurrency network and increase its decentralization.

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