Elon Musk’s Impact on Dogecoin
Elon Musk, the self-exalting tech guru who likes to call himself, “Dogefather”, is in the news again, and he has managed to make a huge impact in the cryptocurrency market.
The present time is different in the way that his comments about DOGE as a possible payment method for Tesla cars resulted in a rise in its price of 15%.
The news started as a result of an interaction during the Q&A session which was held at the Berlin gigafactory on the 14th of March, 2024.
Music’s response to the question if there wouldn’t be at least a possibility to buy Teslas with dogecoin was very optimistic: “At some point, I think we should enable that.” This was followed by the reiteration of the famous dogecoin phrase “dogecoin to the moon!”, to which the audience shouted happily.
Besides being an admirer of dogecoin, Musk is also an old-timer. He advocated for it since 2019, and then he went so far as to pick it as his favorite cryptocurrency.
The news reports indicated that he developed this interest for the employees at Tesla and SpaceX to demand it. He popularized this naming as “the people’s crypto,” and Tesla eventually started accepting dogecoin as a payment option for the company’s merchandise.
Environmental Concerns and Market Response
In the case of dogecoin, just like Bitcoin, there is a problem with the proof-of-work consensus mechanism that leads to the increase of environmental concerns caused by a high rate of energy consumption. However, that, and the case preceding that of Tesla stopping the Bitcoin payments for environmental reasons, were nevertheless received warmly by the market.
This is not the first time that Musk has strengthened the value of dogecoin in the face of a market slump. In June 2022, when every coin in the cryptocurrency market was crashing, he told Bloomberg that his support for the meme coin remained strong and that he would keep purchasing and keeping DOGE coins.
This is what he states as a reason for this, and he says that numerous ordinary people, who are not necessarily rich, have encouraged him to run for president.
Dogecoin’s Evolution and Future Prospects
The first dogecoin was generated at a time when an internet meme became popular in 2013. Initially, it was just a light and quick alternative to bitcoin.
Nevertheless, what is most peculiar is that an unanticipated group of online fans has developed around the cryptocurrency and that it is Musk’s statements that heavily influence its price fluctuations.
As the recent statement of Elon Musk suggests, the days of dogecoin being a mere joke seem to be numbered as it is becoming increasingly likely for it to be regarded as a legitimate currency of the future.
Whether Tesla will truly accept DOGE for car purchases remains to be seen, but one thing’s certain: Elon Musk still rules the dominant position in the value of this nonconventional cryptocurrency.
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