Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Elon Musk's Tesla Enables Dogecoin (DOGE) Payment, Price Surges Over 20%

Published 08/05/2024, 16:00
Updated 08/05/2024, 17:11
© Reuters.  Elon Musk's Tesla Enables Dogecoin (DOGE) Payment, Price Surges Over 20%
TSLA
-
DOGE/USD
-

Benzinga - On April 2, 2019, Tesla CEO Elon Musk posted on X (formerly called "Twitter"), noting that "Dogecoin might be my fav cryptocurrency. It's pretty cool." Unbeknown to Musk, the Tweet started a memecoin movement that brought in tens of billions of dollars and made a handful of billionaires out of thin air. Over five years later, Musk's support for DOGE has continued, with Tesla recently enabling DOGE payments on merchandise.

Don't Miss:

  • If you invested $100 in DOGE when Elon Musk first tweeted about it in 2019, here’s how much you’d have today.
  • According to Cathie Wood, holding 6 Ethereum (ETH) could make you a millionaire, here’s why it can be true.

Musk recently visited the Berlin gigafactory, where he was asked about the possibility of allowing DOGE payments for a Tesla car. "At some point, I think we should enable that," Musk replied, which was cheered by the crowd.

Then, on May 4, Tesla quietly updated the website that it has begun to accept DOGE as payment on some products. While you cannot buy a car with DOGE, you can buy several pieces of merchandise with DOGE.

The process works by giving you a short time frame to send a specific amount of DOGE to the Tesla wallet, which includes applicable taxes and fees. If you do not submit the transaction in time, it will reset and generate a new amount of DOGE in line with the updated price of the token. All purchases with DOGE are final and cannot be canceled or returned.

While Tesla did not specifically announce the move, fans of the company and DOGE were quick to notice the change. News outlets began to cover the story, and the price of DOGE surged. The token went from less than $0.13 on May 2 to nearly $0.17 on May 6th. In total, the move marked a price increase of over 20%. In the same time frame, DOGE gained more than $7 billion in market cap.

Trending: Dogecoin millionaires are increasing — investors with $1M+ in DOGE revealed!

However, this is not the first time that Tesla has allowed cryptocurrency payments. In 2021, Tesla purchased $1.5 billion worth of Bitcoin and began allowing customers to use Bitcoin as a method of payment. However, just a few months later, Tesla stopped allowing Bitcoin as a form of payment. Musk posted an announcement on Twitter, stating that "Tesla has suspended vehicle purchases using Bitcoin. We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel."

This is relevant because DOGE is a hard fork of Bitcoin; this means that it uses the same mining methods to verify transactions as Bitcoin. While DOGE operates on a much smaller scale and generates less emissions than Bitcoin, it is still a relevant concern for the company. However, Musk is likely aware of this and factored it into his decision to begin offering DOGE as a form of payment.

Tesla integrating DOGE could show that cryptocurrency has a place as a form of currency and a store of value in the future. Tesla has continually been at the forefront of innovation, and this could signal what the future of cryptocurrency looks like.

Read Next:

  • 1 in 4 Americans own a share of Bitcoin according to NASDAQ, how much would $10 get you today?
  • Bitcoin has jumped another 45% already this year – how much would you need to get started today?

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.