The price of meme crypto Dogecoin (DOGE) gained 25% after Elon Musk announced that Tesla will accept it as a payment option. The chief executive officer of the electric car company made this known via Twitter, stating:
“Tesla will make some merch buyable with Doge & see how it goes.”
Following this announcement, DOGE became the sole major digital currency to realize gains for the day. In addition, once Tesla effects the plan, DOGE will become the only crypto currently supported by the electric automakers.
Earlier in the year, Tesla had signaled intent to start accepting Bitcoin (BTC) as a means of payment for car purchases. However, the car manufacturing company backtracked shortly after, citing the adverse environmental impacts of mining the crypto.
Musk is of the opinion that adopting DOGE as a payment option presents a better avenue than BTC. In a session with Time Magazine, the Tesla head had this to say:
“Fundamentally, Bitcoin is not a good substitute for transactional currency. Even though it was created as a silly joke, Dogecoin is better suited for transactions.”
In addition, Musk also stated that DOGE provided better value for money than BTC by way of transaction volume. As he put it:
“The total transaction flow that you do with Dogecoin, like transactions per day, is much higher potential than Bitcoin.”
Image Credits: Pixabay
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
