And as the latest move, CEO Musk described his recent favorite Dogecoin as “potentially promising” on Twitter and “working with Doge developers to improve the efficiency of system transactions.” However, the price of Dogecoin has started to rise again.
This statement caused Dogecoin’s price to rise by as much as 18% at one point, but has since regained its composure. Tesla said it was looking for a more energy-efficient option than Bitcoin, which uses “insane” power for mining.
Mr. Musk’s movement looks like a stunt trying to manipulate the price of cryptocurrencies in a roundabout way. Because, like Bitcoin, Dogecoin’s mining is PoW (Proof of Work) type, and the more it increases, the more power it consumes.
Despite the fact that there are cryptocurrencies that adopt the more efficient PoS (Proof of Steak) method, it seems that Mr. Musk’s favorite is probably to support the PoW method cryptocurrency.
Originally made as a joke in 2013, Dogecoin has grown in popularity as Musk began using it as a meme. By the way, this week, Musk asked his followers on Twitter if Tesla should use Dogecoin as a payment method, and about 80% of the 4 million votes were yes.
Rachel Maga is a technology journalist currently working at Globe Live Media agency. She has been in the Technology Journalism field for over 5 years now. Her life’s biggest milestone is the inside tour of Tesla Industries, which was gifted to her by the legend Elon Musk himself.