Fans and traders of the meme-based cryptocurrency Dogecoin rejoice as Elon Musk drops huge announcement about Tesla payment options.
Musk tweeted that the carmaker now accepts Dogecoin for select exclusive merchandise, causing the cryptocurrency to jump by over 18%, which is pretty much the norm whenever he tweets about any cryptocurrency.
As exciting as it is for Doge traders, this is a full 180-degree turn in Tesla’s recent trajectory after the company stopped accepting Bitcoin due to environmental concerns about the more valuable coin’s energy.
The fact that Dogecoin is over 500,000% more energy efficient for each transaction than Bitcoin, according to the number crunching from IT solutions firm TRG Datacenters, might have something to do with that.
That certainly makes Dogecoin a better choice than Bitcoin, although an even better pick would have been XRP, a cryptocurrency that is 8.9 million percent more efficient than Bitcoin.
When looking at the unique power Elon Musk has over the price of Dogecoin – five words are enough to send its valuation to the moon – it’s easy to see a financial incentive behind the choice, too,
It puts Tesla in a unique position. As Musk’s tweets push Dogecoin’s trading value higher, Tesla can turn around and sell the cryptocurrency for a neat profit.
For now, Dogecoin is the only way to buy some of Tesla’s merch, but the company is also looking into Bitcoin to potentially accept it for payment down the road – if it cleans up its carbon footprint.
Cover photo: Collage: Tesla, IMAGO / NurPhoto
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