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.
The bitcoin price has climbed this week, helped by former Twitter TWTR -1% chief executive Jack Dorsey who trashed the ethereum-based web3 vision and made a bold bitcoin prediction.
Now, Tesla TSLA +7.5% 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.”
“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.
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