Elon Musk, Time’s Person of the Year for 2021, has his carmaker Tesla start accepting meme coin Dogecoin. Customers can use the meme-based cryptocurrency to pay for some merchandise. Dogecoin’s prices pumped, with its market cap returning to top 10 ranking.
On 14 December, Elon Musk, Tesla’s CEO, also “The Dogefather,” tweeted: “Tesla will make some merch buyable with Doge & see how it goes.”
Following Musk’s tweet, Dogecoin’s prices surged. At the time of writing (15 Dec, 1:11PM, HKT), the meme coin’s market cap reached $24 billion, ranking 10th among cryptocurrencies.
Dogecoin is one of the most popular meme-based cryptocurrencies. Also, It inspired the rise of other meme coins including Shiba Inu (SHIB) – which brands itself as “Dogecoin Killer”.
In 2013, Billy Markus and Jackson Palmer created Dogecoin as a joke on the crypto mania. Since 2020, Musk has been actively promoting Dogecoin via his Twitter account. Moreover, he once worked with Dogecoin core developers. The team has also declined the funding Musk offered.
Dogecoin Better Than Bitcoin?
Elon Musk, the biggest crypto influencer, was once a high-profile bitcoin supporter. In March 2021, Elon Musk had announced Tesla would accept bitcoin as payments for electric vehicles. As part of the move, Tesla had bought $1.5 billion worth of bitcoin.
However, Musk stopped the plan after two months, citing environmental concerns over bitcoin. After that, Musk has been praising Dogecoin as a better coin for payments.
After being named as Time’s 2021 Person of the Year, Musk told the magazine that Dogecoin is the best crypto to transact with. And, bitcoin is not “a good substitute for transactional currency,” according to Musk.
Bitcoin is more suitable as a store of value, which is why its investors want to hold onto it, according to Musk. “Fiat currency tends to get diluted by whatever government it is,” Musk told Time Magazine. “It ends up being a pernicious tax on people, especially those who have cash savings with dilution of the money supply.”
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