Elon Musk says Tesla will start accepting Dogecoin, increasing shares in the cryptocurrency by up to 33 percent.
Elon Musk said Tesla would accept Dogecoin as payment for some of its merchandise, causing the ‘meme coin’ to increase by 33 percent in just two hours.
Musk tweeted after a poll in which 78 percent of his followers said he’d have to make some stuff purchasable with Doge and see how it goes.
Dogecoin jumped 33 percent to 21 US cents after the tweet.
The currency originally started as a joke in 2013, but now has an impressive market cap of US39 billion (A$51 billion).
Musk did not say which merchandise would be included, but Tesla does sell clothing and mini models of its vehicles.
This isn’t Tesla’s first foray into cryptocurrency. It bought US1.5 billion bitcoin in January, and by March it said it would start accepting the currency for car purchases.
But then Musk backtracked in May, saying that bitcoin’s energy consumption was “crazy” and that Tesla would no longer accept purchases using the currency.
Bitcoin and other cryptocurrencies are ‘mined’ using intense computing power which leaves a huge carbon footprint.
It has since focused its attention on Dogecoin, even working with developers to improve its efficiency.
Tesla boss claims Dog is better for transactions.
Doegcoin has struggled in recent weeks, with its spin-off, Shiba Inu, briefly toppling it on the crypto leaderboard. The Shiba Inu now sits slightly below Dogecoin with a market cap of $34 billion.
In 2013, American software engineer Billy Marcus and Australian entrepreneur Jackson Palmer created Dogecoin. He used a Japanese dog, a Shiba Inu, as his coin’s mascot.
However, in August 2020, an anonymous person calling himself “Ryoshi” created a spin-off of Dogecoin named Shiba Inu or SHIB after the mascot.
Now it is competing with its predecessor.
Musk’s power to pump cryptocurrency has earned him the nicknames “Krypto King” and “Dogfather”.
this week his name was time of magazine person of the Year for 2021.