Elon Musk is back to tweeting about Bitcoin, Ethereum and Dogecoin.
He did so with a tweet in which he praised Dogecoin which unlike Bitcoin and Ethereum does not need a second layer to be scalable, guaranteeing speed and low transaction costs.
In reply to Matt Wallace, youtuber pro Dogecoin, who claimed that with the new DOGE update it could become one of the most used coins in the world, Elon Musk wrote:
BTC and ETH are pursuing a multilayer transaction system, but the entry level transaction rate is slow and the transaction cost is high.
There is the merit of Doge in maximizing the entry level transaction rate and minimizing the cost of transactions with exchanges acting as a de facto secondary level.
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
In fact, Elon Musk complains that Bitcoin and Ethereum only work easily with a second layer. In the case of Bitcoin, the Lightning Network has become critical for enabling quick transactions, and it is increasingly used.
Ethereum also takes advantage of the second levels (such as Polygon ), but with the transition to Proof of Stake, Vitalik Buterin aims to make the first level also scalable and, containing the cost of fees which is currently very high,
Reactions to Elon Musk’s tweet about Dogecoin, Bitcoin and Ethereum
Elon Musk’s tweet obviously moved the price of Dogecoin , which today earns 5% and returns to 22 cents. Bitcoin, on the other hand, was not particularly affected by the words of Tesla’s CEO, on the contrary today it earns 1%, returning to 33,000 dollars, after yesterday’s decline. On the other hand , Ethereum remains in negative territory , which even today loses 3%, reaching around $ 2,100.
But what is striking are also the reactions of the community.
Elon Musk’s tweet, which confirms his support for Dogecoin , was met with an avalanche of criticism.
Peter McCormack’s reply is significant :
— Peter McItsComingHome 🏴 (@PeterMcCormack) July 9, 2021
In practice, McCormack advises Elon Musk to try to go into space with makeshift means since he seems to want everything immediately. On the other hand, the Bitcoin structure, while undoubtedly slow, guarantees a lot of security.
Among the many who have pointed out the excellent functioning of layer 2, Calvin Ayre also checks to underline that BSV works very well without second levels, reaffirming without saying it, that Bitcoin Satoshi Vision is the real bitcoin.
An obvious fact remains: it seems that Elon Musk’s tweets are no longer able to have the same effects on the market.