Twice in one River: Tesla will accept Dogecoin as payment
At the beginning of the year, Elon Musk was already flirting with cryptocurrencies, allowing the purchase of cars for Bitcoin. The experiment ended after a month and a half – the reason for the refusal was the lack of ecology of Bitcoin. Now the company is introducing Dogecoin into the payment system, but the choice of cryptocurrency causes misunderstanding among professional community members.
Elon Musk is called the godfather of Dogecoin or “Dogfather” for frequent mentions and expressions of sympathy for the cryptocurrency. Often his tweets led to a twofold increase in the value of the coin, but each time the power of his statements weakened.
The reason is the inconsistency of Elon Musk. Rejecting Bitcoin, the head of Tesla (NASDAQ: TSLA) insisted on its non-ecological nature. However, Dogecoin works on the same principle of proof of work and requires the participation of miners. According to approximate calculations, 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 changes the awl for soap.
He calls the advantage of Dogecoin lower commissions ($0.4 versus $2 for Bitcoin at the moment), but the meme cryptocurrency has more volatility and is less secure as a store of value.
One of the developers of Dogecoin, Jackson Palmer, called Musk a “narcissistic swindler” back in the spring for his bias and desire for hype, and former SEC analyst Mark Powers called on the regulator to conduct an investigation into his abuse of trust. Elon Musk is promoting other dog-themed meme cryptocurrencies, which, according to Powers, leads to multimillion-dollar losses among his subscribers.
But, apparently, the crypto market has already developed immunity to the antics of the “godfather”: this time the price leveled most of the growth from the news in just a day.