Why Does Elon Musk Support Dogecoin

In 2013, software developers Billy Markus and Jackson Palmer invented Dogecoin as a prank. Its emblem and moniker are inspired by the Shiba Inu dog from the “Doge” meme. On May 5, 2021, the market capitalization of Dogecoin was $85,314,347,523. Some see it as a real financial opportunity, while others see it as a joke.

Elon Musk and His Vision

Elon Reeve Musk is SpaceX’s founder, CEO, and Chief Engineer. He is also a co-founder of The Boring Company, which builds high-speed tunnels. He co-founded Neuralink, a neurotechnology firm focusing on creating brain-computer interfaces, in 2016. He is one of the world’s wealthiest individuals. He has been chastised for his unscientific positions and widely publicized controversies.

Elon has laid out his plan for landing a rocket on Mars by 2022. He claims that they are working on a rocket, codenamed BFR, that will be capable of carrying satellites into orbit and carrying supplies to the International Space Station. This new rocket will be used in place of the Falcon 9, Heavy, and Dragon rockets now in use by the firm. It will be 48 m long and 9 m broad, making it significantly larger than those rockets.

Musk’s Interest in Cryptocurrencies

Elon Musk has hinted that he may create his own cryptocurrency shortly. Earlier this week, Musk announced that Bitcoin would no longer be accepted as a payment method for Tesla vehicles. He stated that it was too energy-intensive for him to continue utilizing cryptocurrencies such as Bitcoin. Tesla’s CEO, Elon Musk, has previously stated that the company will discontinue the practice.

Tesla Elon Musk has blasted the “insane” amount of energy required to create bitcoin. He also stated that he has been collaborating with the developers of Dogecoin, the meme-crypto featuring the face of a Shiba Inu, to improve the energy efficiency of system transactions. Dogecoins require 0.12 kilowatt-hours of power for each transaction, compared to 707 for bitcoin, according to data center provider TRG.

The Impact

Following Musk’s post, the price of Bitcoin fell by more than 11%, and it was trading near $50,000 on Friday. According to Binance, Dogecoin, the fourth-largest cryptocurrency by market value, surged 20% to 52 cents on Friday. Dogecoin’s pricing is a popular way to pay for products and services in the digital world. Dogecoins are accepted as payment by a variety of businesses, and their supply is limitless.

In just a few days, the price of Dogecoin, the “future money for Earth,” has increased by 1,000 percent. Elon Musk tweeted that he purchased “the future money” for his nine-month-old kid. Gene Simmons of KISS said that he had bought “a substantial position” in the cryptocurrency on Twitter. Elon Musk was tagged in a meme by Snoop Dogg in which his visage was substituted with a Shiba Inu.

Conclusion

Dogecoin is an open-source, peer-to-peer cryptocurrency. It has mostly been used to reward “the creation or sharing of great material on Reddit and Twitter.” It may be obtained as a tip by engaging in a digital currency community. Unlike Bitcoin, the Dogecoin supply is uncapped, meaning that the amount of Dogecoins that may be mined is unlimited.