‘Bitcoin Just Gives Power To New Rich People’—Elon Musk Reveals Why He Supports Dogecoin Over Ethereum Even As Its Price Slides

The bitcoin and cryptocurrency community has this week been locked in a blazing row over the development of web3—the idea a decentralized crypto and blockchain-based version of the internet could replace the Silicon Valley-centric web 2.0.

Subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and discover hot new NFT and crypto blockbusters poised for 1,000% gains’

The bitcoin price has climbed this week, helped by former Twitter TWTR chief executive Jack Dorsey who trashed the ethereum-based web3 vision and made a bold bitcoin prediction.

Now, Tesla TSLA billionaire Elon Musk, who’s this year called for dogecoin developers to upgrade the meme-based cryptocurrency in order to better compete with bitcoin and ethereum, has weighed in on the web3 row—revealing why he’s “pro doge.”

Sign up now for the free CryptoCodex—A daily newsletter for the crypto-curious. Helping you understand the world of bitcoin and crypto, every weekday

MORE FROM FORBESCrypto Price Prediction: Exchange CEO Warns 2022 Could See Bitcoin Crash Amid Huge Ethereum, BNB, Solana, Cardano And XRP Sell-Off

MORE FOR YOU

“My goal is to build stuff and make money and have fun,” dogecoin cofounder Billy Markus said via Twitter. “I’m used to the corporate establishment and don’t really see any meaningful break away from it—bitcoin just gives power to new rich people.”

“That’s why I’m pro doge,” Musk replied, adding to a conversation between Dorsey and others on the direction of crypto technology. New research has recently revealed that just 0.01% of bitcoin holders control 27% of the bitcoin in circulation.

Musk was instrumental in the huge bitcoin price rally this year, setting crypto markets alight when it was revealed he’d added $1.5 billion worth of bitcoin to Tesla’s balance sheet in January. The bitcoin price has jumped from $4,000 per bitcoin in March 2020 to highs of $69,000 last month. However, Musk has appeared to somewhat sour on bitcoin over the last six months, partly due to its high energy demands.

Musk has this year repeatedly backed dogecoin over bitcoin other cryptocurrencies, claiming that if it is able to speed up transaction times and reduce fees it will be able to beat bitcoin “hands down.” The Tesla billionaire has also supported a plan that would see dogecoin work with ethereum to enable faster transactions.

The dogecoin price has, however, fallen steadily since peaking in May on the back of a Musk-fueled hype rally. The dogecoin price is now trading down 75% from its highs of over 70 cents, though remains up by almost 5,000% on this time last year.

Ethereum, helped by excitement over its potential to power the nascent web3 and the hype surrounding ethereum-based NFTs (non-fungible tokens), has also soared this last year, climbing at a faster clip than bitcoin as venture capitalist (VC) companies and investors rush to fund ethereum-based projects.

CryptoCodex—A free, daily newsletter for the crypto-curious

MORE FROM FORBESFed Issued Stark Bitcoin ‘Revolution’ Warning Amid Sharp Decline In The Price Of Ethereum And Other Cryptocurrencies

Such corporate support has, however, put off Dorsey, who fears web3 will merely shift the current status quo sideways.

“I’m not anti-ethereum,” Dorsey had said earlier. “I’m anti-centralized, VC-owned, single point of failure, and corporate controlled lies. If your goal is anti establishment, I promise you it isn’t ethereum. Don’t believe or trust me! Just look at the fundamentals.”

Dorsey—who left Twitter to begin working full time at his payments company Block, which includes Square SQ and Cash App—has this week heavily criticized what he sees as the investor-led development of web3 which is largely built on ethereum and other VC-backed blockchains.

“I care only about decentralized, secure, private foundations without single points of failure,” he added, implying bitcoin is the only cryptocurrency or blockchain that enables this.

Dorsey has clashed with well-known crypto investors and influencers this week, including former Coinbase chief technology officer Balaji Srinivasan and general partner at the venture capital firm Andreessen Horowitz Chris Dixon.

“I’m officially banned from web3,” Dorsey tweeted alongside a screenshot of his account being blocked by Andreessen Horowitz cofounder Marc Andreessen.

Dorsey has been a bitcoin believer for years, often talking up bitcoin’s prospects in interviews and rolling out bitcoin-based services at both Twitter and Square.

“If I were not at Square or Twitter, I’d be working on bitcoin,” Dorsey said at a Miami bitcoin conference in June.

Leave a Reply

Your email address will not be published. Required fields are marked *