Updated: Jul 20
Photo Source::Justin Pacheco - https://www.dvidshub.net/image/7132409/usafa-hosts-elon-musk
Elon Musk continues to support dogecoin. Many people are miffed and confused why, including many bitcoin maximalists. One such popular Bitcoin podcaster is Peter McCormack. When Elon Musk yet again gave his support for Dogecoin, Peter responded rather childish with comment that he will keep supporting LADA. Which of course doesn't exist...
But maybe, just maybe Peter is missing what the richest and most influential man in the world sees with Dogecoin. What possibly could Elon see that he doesn't?
Well, if one actually takes the time to understand what dogecoin is and how it works, then the picture becomes much clearer. Dogecoin is similar to both Bitcoin and Litecoin in its origin (Dogecoin is a fork of luckycoin, which is a fork of Litecoin), but differs in only a couple key areas. For one, Dogecoin has a continuous block reward. Secondly, it uses a different mining algorithm than Bitcoin called Scrypt, which it is merge mined with Litecoin also. Third, It has faster block times of 1 minute, which is 2.5 times faster than Litecoin and 10 times faster than Bitcoin.
The most overlooked quality of Dogecoin is the continuous block rewards, which will provide incentive or a "debasement tax" to Scrypt miners forever. Since Scrypt miners can mine both Litecoin and Dogecoin at the same time this helps strengthen Litecoin as well. Since over time as the block rewards for Litecoin end, the miners can charge less for fees getting the dogecoin rewards.
Furthermore, Scrypt hash algorithm is memory intensive, meaning that memory chips are needed to construct the Scrypt miners. This has limited the growth of Scrypt miners and slowed down the ASIC mining upgrades unlike SHA-256 Bitcoin miners which continuously upgrade.
Additionally, Scrypt mining for Litecoin and Dogecoin consume a fraction of the power that SHA-256 Bitcoin mining consumes. Would this make Scrypt miners more ESG friendly than Bitcoin SHA-256 mining?
Elon by supporting Dogecoin, by default is supporting Litecoin. The real question does Elon know this?