Tesla Announces Dogecoin Acceptance, and the Crypto Soars

Posted by Matin Varshochi in CryptocurrencyDecember 20, 2021(Last Updated July 26, 2022)3 min read
Key Takeaways
  • On December 14, 2021, Tesla CEO Elon Musk tweeted he would accept Dogecoin as payment when purchasing select items from the Tesla merchandise store. 
  • The announcement by Musk caused the value of Dogecoin to increase by 20%.
  • The usage of Dogecoin for purchases could be Musk’s test run to see the challenges Tesla would face, should they choose to implement this form of payment throughout the whole company.
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On December 14, 2021, Tesla CEO, Elon Musk, tweeted that they would be accepting Dogecoin as a form of payment for some of their merchandise. The Tesla CEO has spoken about Dogecoin in the past, such as when he appeared on Saturday Night Live. The SNL appearance caused the dogecoin community to panic sell, causing the price of the crypto to plummet. After Musk’s tweet last week, the price of Dogecoin increased by 20% on every cryptocurrency exchange.  

 

What is Dogecoin?

 

Dogecoin is a meme-based cryptocurrency initially created in 2013 by Billy Markus and Jackson Palmer. The cryptocurrency was created as a joke and was originally worth a fraction of a penny. However, due to the continued interest by Musk and the cryptocurrency community, the price soared up to its all-time high of 74 cents per coin. The coin has since been on a steady decline.

 

Image Credit: Oporty786 / Shutterstock.com

 

Musk has priorly mentioned that Dogecoin is his favorite cryptocurrency. The crypto is commonly referred to as “the people’s cryptocurrency,” and Musk was jokingly voted to be the crypto’s CEO on Twitter. Given Musk’s record of always liking Dogecoin, many speculate it could potentially be why he wishes to use this digital currency as a means of payment. 

 

Items Sold on Tesla’s Merchandise Website

 

Some of the items available for purchase on Tesla’s merchandise website currently range from $30 to $1900. The online store has a variety of items, from apparel to miniature models of the Tesla Model 3, pickup trucks, other electric car models, and a cyberquad for kids

 

These items are typically sold out or out of stock on the website, which showcases the popularity of all of Tesla’s items. Therefore, if and when Musk implements the usage of Dogecoin for purchases, it will allow Tesla to observe any technical complications during the transaction process. Unfortunately, for Dogecoin holders, Musk did not explicitly mention anything about which select items will be available for purchase with Dogecoin. 

 

The Future of Dogecoin and Tesla

 

It will take some time to implement cryptocurrency exchanges into Tesla’s website to allow customers to purchase merchandise with Dogecoin. However, once Musk does so, crypto investors can use their holdings to purchase items. 

 

Furthermore, using cryptocurrency to purchase Tesla’s merchandise could potentially be viewed as a test run. Musk has always been a public advocate for cryptocurrency usage for daily transactions. It was previously reported that Tesla purchased $1.5 billion worth of Bitcoin and planned on using it as a form of payment in the future. 

 

As aforementioned, the implementation of Dogecoin could be used to observe the challenges that Tesla would face should they choose to expand the use of crypto for all company products. With more and more meme coins being popularized, such as Dogecoin and Shiba Inu, the idea of using cryptocurrency for everyday purchases may soon become a reality.

 

Musk has always been a pioneer in his business ventures. Whether it is creating an electric vehicle to help the planet use renewable energy, or using his aerospace company to determine how to colonize Mars, Musk enjoys exploring various opportunities. Many Tesla advocates believe that once Musk can create a smooth transactional system for purchases with cryptocurrency, other companies may follow in similar footsteps.

 

Recommended Read: From Bitcoin to Blockchain. What Exactly is Cryptocurrency?

 

What are your thoughts on Tesla potentially using Dogecoin as a form of payment? Let us know in the comments below.

 

Main Image Credit: Ink Drop / Shutterstock.com

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