He also discussed the identity of Bitcoin's pseudonymous creator, Satoshi Nakamoto, and the official currency of Mars.

Elon Musk Discusses Crypto, Dogecoin, Bitcoin, Mars' Currency, and Who Satoshi Nakamoto Is
Elon Musk shared his thoughts on cryptocurrency, dogecoin, bitcoin, and the identity of Bitcoin's pseudonymous creator, Satoshi Nakamoto, in an interview with Lex Fridman, published Tuesday.

Musk, who has long been a supporter of the meme cryptocurrency dogecoin (DOGE), revealed:

Part of the reason why I think there is some merit to dogecoin, even though it was obviously created as a joke, is that it actually does have a much higher transaction volume capability than bitcoin.

"The cost of doing a transaction, the dogecoin fees are very low," the Tesla executive added.

In contrast, he said: "Right now, if you want to do a Bitcoin transaction, the price of doing that transaction is very high, so you could not use it effectively for most things, and nor could it even scale to a high volume." Following the publication of this interview, many people took to Twitter to remind Musk of the Lightning network.

This is not the first time Musk said that dogecoin is better than bitcoin for transactions. During his "Person of the Year" interview with Time Magazine, he noted that bitcoin is better as a store of value while dogecoin is better suited for payments. He also recently announced that his electric car company, Tesla, will start accepting DOGE.