Elon Musk has teased fans with the prospect of Telsa accepting Dogecoin, leading to the cryptocurrency jumping in value.
The Twitter account of Elon Musk is often the first place to catch the latest news about his ventures. The business magnate behind SpaceX and Tesla has now asked about a future collaboration through social media, and it is clear what his followers want.
Elon Musk simply asked, ‘Do you want Tesla to accept Doge?’. The tweet had more than three million responses, with 78.2% of people saying yes. However, accepting the meme-based currency could be a risky move for the company.
Musk’s question about Dogecoin came shortly before he also said Tesla would no longer be accepting Bitcoin. He wrote: ‘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 worse emissions of any fuel.’
While corporate support from Tesla for Dogecoin would undoubtedly enable further growth for the cryptocurrency, it may be a risky venture for the automobile company, as Dogecoin is a decentralised currency that is based on the Shiba Inu meme. These factors present challenges in terms of significant value fluctuations, as well as people accepting it as a legitimate currency.
Dogecoin has seen its value increase by 1,000% this year. Nonetheless, this growth has been broken up by sharp dips in value for unpredictable reasons. Notably, Elon Musk’s appearance on Saturday Night Live led to the currency losing value as he joked the currency was a ‘hustle’. On the back of these sharp and unpredictable changes, it is unclear how the currency could be integrated into the Tesla business.
With that said, Musk has already begun incorporating the cryptocurrency into his other business ventures. Only a few days ago, Musk confirmed that SpaceX would be launching a satellite called Doge-1, which is intended to be fully paid for in the cryptocurrency.
Additionally, Tesla has already invested heavily in Bitcoin. So much so, that at certain times this year, the company has made more money from the currency’s growing value than it has from its electric car sales. On the back of this, another crypto venture could be seen as viable if there is enough support from possible consumers.
The comments of Musk have once again led to Dogecoin soaring in value. Minutes after the tweet about a possible acceptance of the currency, its value grew from $0.46 to $0.54 before returning to $0.5. Clearly, the business magnate influences the volatile market, and this power may make the prospect of using digital currency more appealing than it would for more traditional enterprises.
It seems Musk’s ‘hustle’ could see him furthering his profits.