January 23, 2022

Twice in the same river: Tesla will accept Dogecoin as payment

Earlier this year, Elon Musk already flirted with cryptocurrencies, allowing the purchase of cars for Bitcoin. Experiment ended after a month and a half - the reason for the refusalmade the non-environmental friendliness of Bitcoin. Now the company is introducing Dogecoin into the payment system, but the choice of cryptocurrency causes confusion among professional community members.
Twice in the same river: Tesla will accept Dogecoin as payment

Image source: twitter.com/elonmusk

Elon Musk is called the godfather of Dogecoin or"Dogfather" for frequent mentions and expressions of sympathy for cryptocurrency. Often, his tweets doubled the value of the coin, but each time the power of the statements weakened.
Twice in the same river: Tesla will accept Dogecoin as payment

Image Source: Cryptocurrency Exchange StormGain

The reason is Elon Musk's inconsistency.Refusing Bitcoin, the head of Tesla pressed on its non-environmental friendliness. However, Dogecoin works on the same proof of work principle and requires the participation of miners. According to rough estimates, the annual electricity consumption of the Dogecoin network is 3 GWh, which corresponds to the level of countries such as Montenegro, Jamaica or Yemen.

In simple terms, Musk trades an awl for soap.He calls the advantage of Dogecoin lower commissions ($ 0.4 versus $ 2 for Bitcoin at the moment), however, the meme cryptocurrency has more volatility and is less secure as a store of value.

Dogecoin co-developer Jackson Palmer stillin the spring he called Musk a "narcissistic swindler" for his bias and desire for hype, and former SEC analyst Mark Powers urged the regulator to investigate him about a breach of trust. Elon Musk is promoting other canine-themed cryptocurrencies, which Powers believes leads to multi-million dollar losses among his followers.
Twice in the same river: Tesla will accept Dogecoin as payment

Image source: twitter.com/elonmusk

But, apparently, the crypto market has already developed immunity to the antics of the "godfather": this time the price neutralized most of the growth from the news in just a day.

Analytical group StormGain

(platform for trading, exchanging and storing cryptocurrency)

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