Elon Musk, the CEO of Tesla Inc, revealed on Tuesday that for a limited time, the electric carmaker accepts dogecoin as payment for things. In a tweet, Musk stated, “Tesla will make certain things buyable with Doge and see how it goes.”
Dogecoin’s value climbed by 24% following the announcement to $0.195. Tesla sells clothing, belt buckles, miniature miniatures of its vehicles, a quad bike for kids called the “Cyberquad,” and a whistle based on the much-anticipated Cybertruck.
Elon Musk has switched allegiances to Dogecoin. Until a year ago, the Tesla CEO was one of the strongest supporters of Bitcoin, even announcing that his car-making business, Tesla, would accept Bitcoin payments (only to backtrack). However, he recently stated in an interview with Time magazine that Dogecoin is better for transactions than Bitcoin. According to Musk, Bitcoin is popular among investors since each token now stores a quantity of fiat currency.
Tesla previously indicated that it would no longer accept bitcoin as payment for car purchases, less than two months after it started taking the world’s largest digital currency. In May, Musk, a frequent Twitter user and proponent of cryptocurrencies, questioned his followers on whether Tesla should accept dogecoin.
“Bitcoin has a low transaction value and a high transaction cost. It is suitable as a value store, at least on a spatial level. However, Bitcoin is not a good transactional money replacement. Dogecoin, despite its origins as a joke, is better suited for transactions. After being selected for Time Magazine’s “Person of the Year,” Elon Musk told the magazine, “The total transaction flow that you conduct with Dogecoin is transactions per day has a far larger potential than Bitcoin.”
He referred to dogecoin, a meme-inspired cryptocurrency, as a “hustle” during a guest appearance on the comedy sketch TV show “Saturday Night Live” in May, sending its prices plummeting.
Earlier this month, Musk had said Dogecoin against Ether, the native cryptocurrency of the Ethereum blockchain. He also called Dogecoin “the people’s crypto” and has been tweeting about it aggressively throughout the year.
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