Elon Musk claims that Bitcoin and Ethereum are slow and expensive to make case for Dogecoin big upgrade
Popular cryptocurrency YouTuber Matt Wallace took to Dogecoin on Twitter, reminding that the Dogecoin update is coming soon. And Elon Musk, billionaire Tesla continues to start the cryptocurrency war. He claims that both Bitcoin and Ethereum have slow and expensive base layers.
Elon Musk: There’s merit to using Dogecoin as BTC and ETH are slow
According to Wallace, the upcoming upgrade will position the Shiba Inu-inspired coin as one of the most used currencies in the world. Interestingly, the CEO of Tesla was quick to respond and he actually supported Wallace’s point.
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
Musk believes transactions costs and speeds using Bitcoin and Ethereum are expensive and slow at the base layer. Instead, he indicated that the meme coin could serve as a solution as it minimizes the fees. The billionaire suggested that people could actually switch to using DOGE for faster payments at a lower cost. Therefore, there’s merit to maximizing the base layer transaction rate of the meme coin.
It is hoped that Bitcoin, via its payments-focused lightning network and a recent upgrade called Taproot, will be able to solve some of its scaling issues. Meanwhile, Etheruem is in the awaited phase since Long upgrades are not expected to be completed for many years.
As AZCoin News reported, Musk proposed a Dogecoin upgrade that he claimed is needed for dogecoin to become the currency of Earth and beat Bitcoin hands down. The Dogecoin price has been on the rise this year, initially leading the memecoin wave in January but later developing a tumultuous community led by Musk, who envisioned it eventually competing with Bitcoin and Ethereum.
Musk has previously said that all of his Dogecoin-related comments should not be taken seriously but has since ramped up his support for it. He even made a call to support the developer and promised to literally put a Dogecoin on the moon through his rocket company SpaceX.
With today’s stance, Musk has once again reaffirmed his support for Dogecoin. However, interest in DOGE has recently dropped and its price has dropped more than 70% since its peak. Some investors desperately begged Musk to intervene again, hoping for a quick rise in prices, which hasn’t happened recently.
Peter Brandt: DOGE forms reversal pattern, the further decline may occur
DOGE/USD 4-hour chart | Source: TradingView
At the present time, it can be seen that the Elon Musk effect on DOGE is still there. DOGE is up nearly 7% in the past 24 hours, trading at $0.22.
However, DOGE’s uptrend is only temporary. Trader Peter Brandt shared a reversal H&S pattern of this meme-coin. He warned that once this pattern completes, the downtrend is just one of the options that won’t necessarily happen.
Source: Peter Brandt/Twitter
Brandt shared a DOGE/USDT chart from Binance, marking the Head & Shoulders pattern on it so that it is clearly visible. The Head & Shoulders pattern can signify a reversal in the trend both ways, but here it is showing a reversal.
Some users in the comment thread suggested that the pattern looks more like a Descending Triangle, not a Head & Shoulders. A Descending Triangle is a bearish pattern. It suggests that downside movement is building and a breakdown is in the cards.
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