After Tesla, Inc. (TSLA) CEO Elon Musk tweeted that the auto business was introducing support for the cryptocurrency to make purchases of some products on its website, the price of cryptocurrency Dogecoin (DOGE) soared by more than 43 percent. Tesla has a wide range of things available for purchase on its website. Cyberwhistles, replicas of the Cybertruck, and hats are examples of the products.
The cost of meme cryptocurrency After Tesla CEO Elon Musk suggested it could be used to buy products on the company’s website, Dogecoin soared by more than 40%.
Dogecoin, according to Musk, is better suited as a payment system than Bitcoin.
This year, Dogecoin has increased by around 5,900%.
After Musk’s post, the price of Dogecoin jumped 44 percent to $0.23 in an hour on Coinbase, North America’s largest trading exchange by volume. It dropped after that, but it’s still trading at $0.20 right now. According to Coinmarketcap, the cryptocurrency has a market capitalization of $25.5 billion and is the ninth most valuable coin in crypto markets.
Supporters of Dogecoin have been asking for it to be used as a payment method on retail websites. The #dogearmy hashtag on Twitter encourages CEOs and influential company spokespersons to give the coin to stores as an option. AMC Entertainment Holdings, Inc. (AMC) caved to criticism earlier this month and allowed BitPay, a bitcoin wallet, to be used to purchase digital gift cards for the chain.
Musk, who was voted Person of the Year by TIME magazine yesterday, claimed Dogecoin was “more suited” for transactions than Bitcoin because of its lower transaction volume and cost per transaction. Dogecoin “encourages people to spend rather than hoard as a store of wealth,” according to Musk. Satoshi Nakamoto, the cryptocurrency’s creator, intended it to be used as a medium of exchange. However, merchants have been unable to use it due to lengthy transaction processing times, pricing volatility, and network capacity limitations.
It’s unclear whether Dogecoin will be able to take its place. The cryptocurrency, which began as a joke, was previously utilized in a charitable endeavor and has no known transaction use cases. The code base, which is cloned from Bitcoin, is rarely updated. Dogecoin has benefited from investor interest for meme stocks during the outbreak. Its price has risen by about 5,900% this year, reaching nearly $0.70 at one point. During an appearance on Saturday Night Live, Musk, who frequently tweets about cryptocurrencies, referred to it as a “hustle.”