Electric car manufacturing company Tesla announced that it now accepts Bitcoin (BTC) as payment for its top-level cars. Taking note of this, entrepreneur Kim Dotcom tried persuading Elon Musk, the CEO of Tesla, that Bitcoin Cash (BCH) provides a much fairer deal when it comes to payments. Acknowledging the entrepreneur, Elon Musk too agreed that Bitcoin Cash (BCH) is better than Bitcoin (BTC) in terms of lower transaction fees.
Elon Musk Acknowledges BCH’s Supremacy Over BTC
The CEO of Tesla, Elon Musk’s tweet of accepting Bitcoin payment for buying Tesla cars spread buzzes in the community. He further added that the ‘Pay by Bitcoin’ capability will be made available outside the U.S. by the end of 2021.
The news made waves in the world of the crypto community, confirming the cryptocurrency’s mainstream appeal.
Musk further clarified that the BTC payments paid to Tesla would be retained and not converted to fiat money.
Tesla is using only internal & open source software & operates Bitcoin nodes directly.
Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency.
— Elon Musk (@elonmusk) March 24, 2021
In reaction to this, popular entrepreneur Kim Dotcom approached Elon Musk to highlight Bitcoin Cash’s (BCH) advantage over Bitcoin (BTC) as a payment option.
Kim pointed out that over half of all cash payments worldwide are just below $10, further reiterating that replacing bitcoin as a payment method would not be affordable as the median fees are quite high. For instance, a median fee for Bitcoin would be $8.92, while for Bitcoin Cash it would be only $0.001.
According to Kim, Bitcoin Cash (BCH) serves the mass market, unlike Bitcoin (BTC), which is only for the top one percent. To which Elon Musk replied, “Fair Point.”
Tesla Has Purchased $1.5 Billion Worth of Bitcoin
Even though Bitcoin’s mempool size and count are much higher than that of bitcoin cash the transaction fees are still much lower.
In February, Tesla bought $1.5 billion worth of bitcoin. At the time the company said that it would begin accepting the cryptocurrency as a payment option on a limited basis in the near future.