Elon Musk: Ethereum and Bitcoin “Doge” Transaction Throughput and Costs
The Dogemaster has struck once more. This time with a subtle endorsement of Dogecoin while throwing jabs at Ethereum and Bitcoin.
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
The vocal billionaire said that although the two most popular projects pursue multilayer transaction systems, their respective base layers suffer from scalability issues and high transaction costs. By “Dodging” scalability and transaction fees, both networks make CEXes de-facto secondary layers.
Earlier on, Elon bashed Bitcoin’s energy consumption levels following Tesla’s decision to halt receiving BTC as payment.
Despite Elon’s comments, Ethereum and Bitcoin developers are aware of fundamental problems. Before eventually shifting to Proof-of-Stake, several Ethereum projects like Optimism and Arbitrum have solutions at hand. Later, once Ethereum 2.0 activates, Ethereum will switch off Proof-of-work for staking, which is energy efficient.
On the other hand, Bitcoin’s Lightning Network is experimental. Once fully adopted, it will resolve Bitcoin’s scaling challenges, making BTC money.
Bitcoin Miners Unfazed by China’s Crackdown, Commits more Resources
The Bitcoin hash rate is recovering as miners, initially based in China, shift base, moving to Kazakhstan and other crypto-receptive zones.
Meanwhile, Gryphon Digital Mining will purchase 7,200 Antminer S19J Pro worth $48 million from Bitmain. From August 2021, the world’s largest chipset manufacturer will begin delivering 600 rigs every month until it honors its part of the deal, a boost for the U.S.-based miner that uses renewable energy to power its operations.
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