Dogecoin Jumped After Elon Musk’s Tweet Of Tesla To Test DOGE Payment
Dogecoin (DOGE) soared as much as 33% after Tesla CEO Elon Musk said the electric-car maker would accept the digital asset as payment for its merchandise.
In a tweet to his 66.4 million followers, the CEO of the electric vehicle manufacturer said that Tesla will test out DOGE payments on some of its merchandise. He wrote:
“Tesla will make some merch buyable with Doge & see how it goes”
Tesla will make some merch buyable with Doge & see how it goes
Dogecoin jumped to as high as $0.22 following Musk’s tweet, before falling back to about $0.18 level. At the time of writing DOGE trades at $0.186.
DOGE/USD Source: CoinGecko
Musk, who was yesterday named Time magazine’s person of the year, has previously announced his support to dogecoin development and adoption, and compared it to Bitcoin saying that it is not that good for everyday payments as Dogecoin. He said:
“Bitcoin is not a good substitute for transactional currency. Even though it was created as a silly joke, Dogecoin is better suited for transactions. The total transaction flow that you do with Dogecoin, like transactions per day, is much higher potential than Bitcoin.
Dogecoin is slightly inflationary, but that inflationary number is a fixed number as opposed to a percentage.So that means, over time, its percentage inflation actually decreases.And that’s actually good because it encourages people to spend rather than hoard it as a store of value.”
Earlier this year, Tesla started accepting bitcoin as payment for its electric cars. The pilot proved short-lived amid rising concerns about Bitcoin’s energy usage and was dropped.
