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Elon Musk, the richest man in the world has been vocal about his support to Dogecoin. The billionaire has invested in the digital token along with Bitcoin and Ether, he said in October.

To Elon, the meme-based cryptocurrency has an advantage over Bitcoin other cryptos. Musk sees Dogecoin as the best cryptocurrency for transactions.

“Fundamentally, bitcoin is not a good substitute for transactional currency,” Musk told Time Magazine after being named Time’s 2021 Person of the Year. “Even though it was created as a silly joke, dogecoin is better suited for transactions.”

″[T]he transaction volume of bitcoin is low, and the cost per transaction is high,” he said. Musk added that bitcoin is more suitable as a store of value, which is why its investors want to hold onto it and not sell it or use it for transactions.

On the other hand, Dogecoin is a currency that “encourages people to spend, rather than sort of hoard as a store of value,” he said.

Nonetheless, while Bitcoin enthusiasts would agree that the crypto is a measure for storing value, they also argue that it’s designed as a peer-to-peer financial system. They gave an example of El Salvador making Bitcoin a legal tender.

Despite Musk’s bullishness on cryptocurrencies, the CEO of Tesla doubts that it would replace fiat. “I’m not a huge hater of fiat currency like many in the crypto ­world are,” Musk told Time.

But, according to Musk, “there are advantages with crypto relative to fiat, in that fiat currency tends to get diluted by whatever government it is. It ends up being a pernicious tax on people, especially those who have cash savings with a dilution of the money supply.”

However, financial experts view cryptocurrency as a volatile, risky and speculative investment. In turn, it’s recommended to only invest what you can afford to lose.