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Elon Musk has once again weighed crypto. This time, he is targeting Bitcoin and Ethereum.
Elon Musk shares Crypto Views
Elon Musk has condemned Bitcoin and Ethereum.
In a Twitter post earlier this morning, Tesla and the SpaceX founder shared their thoughts on the two leading cryptocurrencies, specifically referring to scalability.
BTC & ETH pursues a multi-tier transaction system, but the base tier transaction rate is slow and transaction costs are high.
There is profit imo to Dodge maximizing base layer transaction speed and minimizing transaction costs with exchanges acting as de facto secondary layers.
̵1; Elon Musk (@elonmusk) July 9, 2021
He wrote to Dogecoin influencer Matt Wallace, saying that Bitcoin and Ethereum “pursue a multi-tier transaction system, but the base tier’s transaction rate is slow and transaction costs are high.”
He added that he believed there was “profit” in using Dogecoin as a method of “maximizing the base layer’s transaction speed and minimizing transaction costs”, where cryptocurrency exchanges take on the role of a “de facto secondary layer.”
Numerous crypto enthusiasts responded to Musk for criticizing his recordings. Some raised questions about how exchanges would work as a Layer 2 for Dogecoin, while others called on Musk to explore scalability solutions for Bitcoin and Ethereum. “Pack it all together – Elon solved blockchain scalability, ”joked Anthony Sassano, a prominent Ethereum supporter. “I can’t believe people are listening to this,” added Joel Heyman, a longtime Bitcoin supporter.
While the use of the Bitcoin blockchain can be relatively slow and expensive, the Lightning Network has led to major improvements in transaction times and costs. Similarly, several Layer 2 solutions are currently under development to help Ethereum scaling. Many of Ethereum’s leading DeFi protocols have outlined their plans to launch at Arbitrum and Optimism, two highly anticipated optimistic Rollup solutions expected to launch this year.
Both Bitcoin and Ethereum are known for their high degree of decentralization, making scalability problematic. Nevertheless, it seems to Musk that his focus is primarily on Dogecoin. Musk has been the leading proponent of the meme currency for the past few months, while his views on other cryptocurrencies have been harder to establish. He shocked the crypto community in May by revealing that Tesla would halt Bitcoin payments due to environmental concerns and has since criticized the leading blockchain. Despite Musk’s recent stance, Tesla still keeps Bitcoin on its balance sheet after investing $ 1.5 billion. Earlier this year. In February, Musk was filmed, saying crypto was likely “the currency of the future”.
Publication: At the time of writing, the author of this feature owned ETH, ETH2X-FLI and several other cryptocurrencies.
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