Slow and Expensive Transactions — Elon Musk Criticized Bitcoin and Ethereum
Billionaire Elon Musk criticized the Bitcoin and Ethereum blockchains for their slow transaction speed and high cost.
In response to a tweet from YouTube blogger Matt Wallace about the upcoming Dogecoin update, Musk stated that Bitcoin and Ether are using a multi-tiered transaction system, but the transaction rates are slow at the basic level and their costs are very high.
Musk agreed that once DOGE maximizes transaction speed at a basic level and minimizes transaction costs with the exchanges, the currency will become even more popular.
Then a whole discussion unfolded on the network.
Machine learning engineer Pranay Pathole noted that Dogecoin is 15 times faster than Bitcoin to date. In his opinion, it’s easy to achieve a reduction in network fees and an increase in block size, while increasing the speed of generating new blocks tenfold will be a little more difficult.
And the developer Udi Wertheimer proposed to implement the SegWit update solutions for the Bitcoin network in Dogecoin.
But The Block analyst Larry Cermak said Musk was wrong and added that cryptocurrency exchanges never worked as the second-tier solutions.
To which Wertheimer replied that the exchanges had been doing this for more than ten years.
Chermak emphasized 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.
And on his page, Chermak added that Musk, apparently, understands little about the subject of the conversation, although he truly believes in what he says.
“What’s sad is that I initially really believed that Elon was informed on these topics (why wouldn’t you be after deploying billions?!). But as time goes and he keeps sharing these nonsensical takes, I’m increasingly convinced he’s just clueless and not even trolling,” the analyst said.