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.”
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