Of late, Elon Musk’s statements are perceived to have major impact on the valuation of cryptocurrencies.
Only few weeks back, Tesla’s CEO was seen as a resolute advocate of Bitcoin, aiding the numero uno crypto to appreciate in value. Musk started by using the hashtag #Bitcoin in his Twitter profile, which caused the price of BTC to rise.
Tesla’s CEO later revealed that the company would start taking Bitcoin payments in return for its goods. Bitcoin’s price soared as a result of this.
Musk responded to the tweet, stating:
“Ideally, Doge speeds up block time 10X, increases block size 10X & drops fee 100X. Then it wins hands down.”
Buterin, on the other hand, has disputed Musk’s suggestion of increased DOGE scalability. The Ethereum co-founder pointed out that attempting to achieve excessive scalability would result in an unprecedented centralization, which is incompatible with the characteristics of a blockchain.
Decentralization, as per Buterin, eliminates the probability of a blockchain becoming a single source of error. Decentralization, he said, protects against concerted assaults. Buterin went on to say that for everyday users to operate a node, decentralization is needed.
Ethereum co-founder Vitalik Buterin stated:
“For a blockchain to be decentralized, it’s crucially important for regular users to be able to run a node, and to have a culture where running nodes is a common activity.”
Following Buterin’s paper on the constraints to blockchain scalability, which contradicted Musk’s DOGE prediction, the Tesla CEO tweeted that Dogecoin would cross $1.
Following Buterin’s paper on blockchain scalability, which contradicted Musk’s rgument on DOGE, the Tesla CEO tweeted that Dogecoin would cross $1. A DOGE and a one-dollar bill are depicted in the tweet.
He fears the … pic.twitter.com/78WzM5ICjA
— Elon Musk (@elonmusk) May 24, 2021
Musk also posted an image of a distorted one-dollar bill with the words “cyberviking” on it in some other tweet. Elon Musk also added the comment, “How much is that Doge in the window?” to the illustration. DOGE jumped 20% to $0.42 on the day, a new intraday record. Dogecoin is currently trading at $0.3259, and its 24-hour trading rate has increased by 74.60%.
The popularity of DOGE has become a hot subject on social media, with many predicting that the coin would quickly surpass the $1 mark. The crypto world had been anticipating a $1 DOGE price since Elon Musk’s performance on Saturday Night Live on May 8th. DOGE, on the other hand, dropped 30% after the broadcast.