Tesla’s founder and CEO, Elon Musk, has put his support behind dogecoin, a meme-inspired cryptocurrency. Tesla will accept meme-inspired coins —”people’s crypto”—as payment for selected products on its website, Musk revealed in a tweet on January 14.
Customers cannot use the currency to purchase Tesla electric vehicles, but they may purchase collectible goods such as a “cyberwhistle,” a “Giga Texas” belt buckle, and a “cyberquad” four-wheeler for youngsters.
Customers must have their own dogecoin wallets set up in order to pay with the cryptocurrency, according to Tesla’s support page, and any payment made with any other digital currency may result in the asset being lost or destroyed.
How the market reacted to Musk’s tweet about dogecoin?
The price of dogecoin has increased by 18% to $0.20. According to CoinMarketCap data, dogecoin has a market valuation of $25.6 billion and is the world’s 11th largest digital coin. The price of the meme-coin had dropped to its lowest position since April 2021, following a recent decline in all digital assets. Musk’s tweet in December 2021 about a dogecoin test run provided it a boost as well.
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Last year, the electric vehicle manufacturer accepted bitcoin payments for a limited time for its items, including vehicles. However, in May 2021, this came to a halt as Musk expressed concern about the environmental impact of bitcoin mining.
On the other side, dogecoin is known to use less energy than bitcoin. According to TRG Datacenters, this coin requires 0.12 kWh of energy each transaction, compared to 707 kWh and 62.56 kWh per transaction for bitcoin and ethereum, respectively.