“The company will accept the purchase of certain products through the use of Dogecoins: let’s see what the results are,” announced Tesla CEO Elon Musk through his Twitter account.
After this announcement, the value of the cryptocurrency shot up almost 25 percent in a few minutes.
The news was announced this Tuesday, December 14 and the value of dogecoin was Shooting. The following day, it fell 15 percent.
According to the CEO of Tesla, the electric vehicle company will be able to accept DOGE as a means of payment in what will be a pilot test. If it works as Musk expects, the project could be extended in time.
Dogecoin rises because of Musk’s announcement
Following this announcement from Tesla, digital currency dogecoin rose 24 percent to $ 0.195. The company, in addition to vehicles, sells clothing, belts, miniature replicas of its cars, children’s vehicles – such as the “Cyberquad” and the “Cyberwhistle” – based on the original Cybertruck truck model.
In this sense, it is not explained if the Dogecoin will be received for the vehicles or only for attached products.
Tesla, for now, says yes to Dogecoin and no to Bitcoin
The electric car manufacturer had announced some time ago that it would not accept any more bitcoins as a means of payment in the acquisition of vehicles. It was just two months after the company began to accept this cryptocurrency as a method of payment.
Everything happened in early 2021 and generated abrupt changes in the price of bitcoin.
In September, the CEO of Tesla, who supports the digital currency market, conducted a survey on his Twitter account to find out if users wanted the company to allow the use of Dogecoin as a form of payment in the purchase of its products.
Previously, you said that DOGE, the digital currency based on memes, was a “scam”. It was during his guest appearance on the television show “Saturday Night Live” in the middle of this year, a comment that caused the value of the cryptocurrency to fall.
In the last days the cryptocurrency obtained another great achievement, as it was featured in Google Trends’ annual “Year in Search 2021” report.
According to this report, the term Dogecoin got the fourth most searched place in the news section this year, in the US and worldwide.
What is dogecoin
Like all digital currencies, DOGE is a cryptocurrency that can be invested in and also spent as money.
While each cryptocurrency is unique, DOGE has Similar characteristics to other more popular cryptos, such as Litecoin, on which its code is based.
However, it differs in certain aspects.
It differs from Bitcoin as the Dogecoin has nearly 130 billion cryptos in circulation and plans to enable the m Inheritance of new DOGE blocks each year, on the other hand, the BTC fixed its amount of cryptocurrencies at 21 million.
That is one of the reasons why the value of DOGE is close to US $ s 0.19 and Bitcoin exceeds US $ 47,000.
Although cryptocurrencies are increasingly accepted as a means of payment for the purchase of goods, the DOGE is not widely used in the Everyday life.
For now, and until the Tesla thing happens, Dogecoin is used to tip artists online and not much else.