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Tesla accepts Dogecoin as payment method for its merchandise

Jordan
Major
Updated: 04 May, 2022
2 mins read

Tesla’s (NASDAQ: TSLA) CEO, Elon Musk, revealed the company will make some of its “merch” buyable with Dogecoin (DOGE) in a tweet on December 14.

Notably, Musk has been a strong supporter of Dogecoin, a meme coin that has grown beyond expectation, thanks to his support. The Tesla CEO who was recently named the person of the year by Times Magazine said the company would “see how it goes.”

Whatsmore, Musk recently said that Dogecoin is better than the flagship digital currency Bitcoin in terms of transactions.

“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. The total transactional flow that you can do with Dogecoin per day has a much higher potential than Bitcoin.” he said.

Doge can be used to buy Tesla merchandise 

This announcement has been long-awaited as Dogecoin fans looked forward to when the coin’s lead supporter would accept it as payment in one of his companies. Previously, Tesla had accepted Bitcoin as a payment for its cars. However, it later pulled out as Elon Musk expressed concerns about the effect of Bitcoin mining on the environment. 

This action triggered a backlash from the crypto community, but the company has not looked back on the decision. With the latest development, Doge will be replacing Bitcoin as the only cryptocurrency the company accepts as payment.

What is Dogecoin?

Built on Bitcoin’s native architecture, Dogecoin also uses the Proof-of-Work algorithm to verify transactions. However, the network processes transactions faster and at a lower cost than Bitcoin, making it easier to use as payment for goods and services. 

Currently, Doge is the 9th largest cryptocurrency by market capitalization and the largest among all meme cryptocurrencies. One dog-themed token that is close to it is Shiba Inu, an Ethereum-based token that is commonly referred to as the “Dogecoin killer.” 

With the new use case for Dogecoin and Shiba Inu’s game development plan, it will be interesting to see how the competition goes in the future.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.

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