By Samuel Indyk
Investing.com – Dogecoin jumped by over 21% on Tuesday morning and was the best performing major cryptocurrency after Tesla Inc (NASDAQ:TSLA) CEO Elon Musk tweeted that the automaker will make some merchandise buyable with the coin and “see how it goes”.
Elon Musk has long been a supporter of Dogecoin, confirming earlier this year that he has invested in it, along with Bitcoin and Ethereum.
Yesterday, the Tesla CEO was announced as Time’s Person of the Year. In a wide-ranging interview, Musk reiterated his support for the meme-based coin.
“The transaction volume of Bitcoin is low and the cost per transaction is high,” Musk said in an interview published on Twitter. “Fundamentally, Bitcoin is not a good substitute for transactional currency. Dogecoin is better suited for transactions.”
However, Musk still doubts that cryptocurrencies will replace fiat currency and denied that his tweets move the markets in ways that wouldn’t happen anyway.
“Markets move themselves all the time based on nothing as far as I can tell,” Musk told Time. “So the statements that I make, are they materially different from random movements of the stock that might happen anyway? I don’t think so.”