Dogecoin gains 8% after Elon Musk says DOGE payments compete with Bitcoin, Ethereum

Dogecoin gains 8% after Elon Musk says DOGE payments compete with Bitcoin, Ethereum

Dogecoin (DOGE) may need a new marketing strategy after the latest publicity stunt from Elon Musk moved its price by less than 8%.

In a tweet on Thursday, “Dogefather” Musk argued that Dogecoin could do a better job at payments than Bitcoin (BTC) or Ether (ETH).

Our top trading bots

Musk: BTC, ETH “slow” with high fees

The latest in a long line of plugs, the Tesla and SpaceX CEO was responding to crypto YouTuber Matt Wallace, who revealed excitement about an upcoming protocol upgrade. 

“BTC & ETH are pursuing a multilayer transaction system, but base layer transaction rate is slow & transaction cost is high,” Musk claimed.

“There is merit imo to Doge maximizing base layer transaction rate & minimizing transaction cost with exchanges acting as the de facto secondary layer.”

The proposal envisages Dogecoin having on-chain transactions as the norm, with exchanges essentially fulfilling the role that the Lightning Network does on Bitcoin.

Exchanges currently process large numbers of transactions internally without touching the blockchains of respective coins. These are then synced as necessary, resulting in fewer on-chain transactions and, therefore, fewer fees and less strain on the relevant blockchain.

Responding, Twitter users took issue with the concept that exchanges would be happy to fulfill such a role. 

Employing centralized trusted third parties as the backbone of a payment network, others hinted, was vastly inferior to the Lightning Network solution.

“Elon Musk and Jeff Bezos are pursuing a multi planetary space transport, but development is slow & cost is high,” podcast host Peter McCormack mockingly replied.

“There is merit imo to building rockets with spit and cardboard, increasing build speed and minimising cost.”

DOGE price limps 70% below peak

For all the attention, meanwhile, DOGE/USD once again moved only slightly, trading up 7.6% at just under $0.23 at the time of writing.

Related: Elon Musk's latest attempt to pump Dogecoin fails miserably

Against its all-time highs from May 8, when Musk went on Saturday Night Live to bring Dogecoin to a wider audience, the pair is still down 70%.

Dogecoin gains 8% after Elon Musk says DOGE payments compete with Bitcoin, Ethereum
DOGE/USD 1-hour candle chart (Bittrex). Source: TradingView

Musk has inadverently diverted attention from DOGE with his own social media campaigns.

Various tweets have spawned new dog meme-themed cryptocurrencies — a post about Musk adopting a Shiba Inu named “Flocki” quickly saw the emergence of a raft of Shiba Inu-related tokens.

Prior to that, Shiba Inu (SHIB) itself competed with DOGE as retail investors piled into the meme trades.

Keep reading upon Cointelegraph
Driving ‘purists beserk’: Co-chair of blockchain caucus wants to 'reverse' crypto transactions
Bill Foster, Democratic Representative and co-chair of the Congressional blockchain caucus, has called for a regulatory framework that would enable third...
Stablecoins not that radical, says Bank of England official
There has been much commotion about stablecoins among central bankers, regulators and lawmakers in recent years, most notably in the furor surrounding Facebook’s...
Proposed New York Bitcoin mining ban watered down to allow green projects
A proposed crypto mining ban calling for a forced three-year hiatus on all mining operations in New York has been watered down — and will now allow green...
Coinbase rival Kraken launches mobile crypto trading in US
Major global cryptocurrency exchange Kraken has launched a mobile crypto trading application in a new move to boost industry adoption in the United States.The...
Shanghai Man: Aping out of gorilla token, digital dollar Biden its time... and more
This weekly roundup of news from Mainland China, Taiwan, and Hong Kong attempts to curate the industry’s most important news, including influential projects,...
Price analysis 5/3: BTC, ETH, BNB, XRP, DOGE, ADA, DOT, UNI, LTC, BCH
Ether (ETH) has been the star performer among major cryptocurrencies in the past few days as its rally has continued unabated. The second-largest cryptocurrency...
England’s central bank moves ahead with CBDC with 7 job postings
The United Kingdom’s central bank, the Bank of England, or BoE, still maintains that it is unsure on a path forward regarding a central bank digital currency,...
Multi-billion dollar investment trust backs Kraken ahead of possible listing
The $5.3 billion dollar investment trust RIT Capital Partners has acquired a stake in leading crypto exchange Kraken. The London based-trust, formerly named...
Experts debate whether NFTs really need blockchain
At the BlockDown 2021 conference, EllioTrades, a crypto YouTuber and co-creator of the Superfarm NFT project, joined a debate about the value of nonfungible...
XRP Climbs 26% In Bullish Trade
Investing.com - XRP was trading at $1.95049 by 01:39 (05:39 GMT) on the Investing.com Index on Wednesday, up 25.72% on the day. It was the largest one-day...
Delta Exchange completes $5M token raise following investments from DeFi players
Delta Exchange, a cryptocurrency derivatives platform, has successfully concluded a $5 million private sale of its native Delta Exchange Token (DETO), setting...
Bullishness for Bitcoin continues despite its struggle to reclaim $60,000
Bitcoin (BTC) continued to face strong resistance at the $60,000 level on March 19 as bulls spent the day climbing back from an early morning drop which...
SEC issues first ever charges over phoney ‘insider information’ on darknet
The U.S. Securities and Exchange Commission has announced charges against California resident James Roland Jones in the first-ever enforcement action from...
Starbucks On Blockchain, Who Is Next?
Chairman of the Board of Directors of Starbucks Howard Schultz said that his coffee network plans to include blockchain and digital currencies in his...
Facebook Messenger Users Targeted by Cryptocurrency Viral Miner
Experts from the Trend Micro Company recorded a new activity during which malicious actors have been distributing the Monero cryptocurrency miner called...