Dogecoin, also known as Doge, is a cryptocurrency designed to mock the crypto market. Musk has expressed interest in Dogecoin, calling it amusing that a joke currency becomes a real currency. He’s tweeted about Doge often on Twitter and gotten accused of pumping it. The CEO candidly stated that he owns “some Dogecoin,” and responded to the criticism by stating, “I may pump, but I do not dump.”
Tesla has been investigating the cryptocurrency realm for the previous year. Tesla made a $1.5 billion investment in Bitcoin earlier this year. The firm began accepting bitcoin as payment on new vehicles shortly after. Musk even mused about the possibility of Tesla beginning to accept Dogecoin as payment for automobiles.
However, Tesla reversed its position a few days later by removing the Bitcoin payment option. The firm stated worries over the energy consumption of the Bitcoin network:
Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.
Many Tesla fans expressed worry over this when Tesla made its Bitcoin investment, and many were enraged that the firm hadn’t considered it. When asked whether they would be selling their Bitcoin stake, Tesla replied that they would not be doing so at this time. They also stated that once the network shows a higher proportion of renewable energy, they will resume taking Bitcoin payments.
This summer, Musk stated that he thinks Tesla will resume taking Bitcoin payments as he sees the energy mix of Bitcoin mining improving. Tesla has yet to start accepting payment in bitcoin, but Musk tweeted today that Tesla would take Doge for “some merch” on its website. It appears that Tesla is preparing to dip its toes by accepting Doge as payment on its online store, which sells Tesla apparel and accessories, according to the announcement.
Dogecoin’s value has increased dramatically whenever Musk discusses it, and after he regularly mentioned the meme coin earlier this year, its price skyrocketed to record highs. The cryptocurrency now has a market capitalization of $25 billion. It fell 40% in value during the previous six months, but it appreciated 20% this morning as a result of Elon Musk’s announcement that Tesla would accept it as payment.