Key Takeaways:
- Elon Musk tweets that Tesla will now accept Dogecoin for payments.
- The value of Dogecoin surges by 20% within an hour.
- Founder of Dogecoin supports Musks’ views on Dogecoin.
- Currently, Tesla is not capable of receiving or detecting other digital assets.
Musk has created another hype in the crypto industry today with his tweet. He has announced that Tesla is now ready to accept dogecoin to pay for selected merchandise. However, his tweet has also made it clear that it will just be a trial run as he mentions, “Tesla will make some merch buyable with Doge & see how it goes”.
In 2013, Dogecoin, whose name is inspired by a Shiba Inu dog, was launched as a joke cryptocurrency and earned the name of meme coin. Musk started heavily promoting it on social media, and his support surged the value of the coin by a record of 69 per cent in May.
Owing to today’s tweet, the value of this meme coin has again surged by 20% within an hour. It seems that the billionaire has been considering this for a while now; as he stated in an interview with Time Magazine after being honoured as its “Person of the Year”, “Dogecoin is better suited for transactions.”
He further stated that though this started as a joke, Dogecoin has a much higher potential than Bitcoin in terms of transactions per day. In addition, he finds the decreasing manner of its inflation percentage “good” as it will encourage people to spend it rather than hoard it as a store of value.
The billionaire further added that Bitcoin is “not a good substitute for transactional currency” because he noted that it has low transactional volume but a high cost per transaction. Supporting his views, Dogecoin’s founder Billy Markus has tweeted, “I think it’s safe to say the cofounder of PayPal might know a little something about money, so y’know….”
All this has got crypto investors anticipating that Dogecoin may be the next big deal in the market of digital currencies. However, as of now, Tesla has made it clear that it “cannot receive or detect any other digital assets.”
