On December 15, foreign media electronek reported that Tesla CEO Musk announced that it will begin to accept the cryptocurrency "Doge coin" as a payment currency, which can be used to purchase goods in some Tesla stores. Affected by Musk's words, Dogecoin suddenly rose by 20%.
In early February, Tesla CEO Musk launched a vote on Twitter "What do you want to use as the future currency of the earth", and as of 16:00 on February 6, nearly 1 million people had participated in the voting. Among them, 72% of netizens chose to use Dogecoin as future currency, and 28% chose other currencies.
When it comes to virtual currencies, you may be familiar with Bitcoin. Bitcoin is the world's largest virtual currency, with a total of about 20 million coins, and now less than 10 million have been mined. In order to mine Bitcoin, these Bitcoin miners frantically hoarded graphics cards, resulting in a sharp increase in the price of graphics cards.
Dogecoin is also a virtual currency, marked by a Shiba Inu. Dogecoin is mined in a different way than Bitcoin, mining a total of 100 billion in the first year, followed by 5 billion per year, with no upper limit, in line with the rate of inflation of fiat currency. Based on the Scrypt algorithm, Dogecoin is now the second largest virtual currency in the world. Virtual currencies have cryptographic properties, users are anonymous, and it is troublesome to trace the flow of money, so they are often used for black market transactions.
Earlier this year, Tesla accepted bitcoin as a payment currency that could be used to pay for new cars, and also bought $1.5 billion worth of bitcoin as an investment. However, Tesla canceled the decision a few days later, on the grounds that Bitcoin could exacerbate the disruption to the environment. Nowadays, mining bitcoin, not only to provide powerful computing power such as graphics cards, but also need a lot of power resources, and electricity in many parts of the world is still thermal power generation, which will consume a lot of coal resources, and will also emit a lot of carbon dioxide, exacerbating the greenhouse effect.
Tesla, as a trillion-dollar company, should consider that the above decision may promote the value of Bitcoin, thereby exacerbating the mining phenomenon, and accepting Dogecoin payments will be relatively reasonable, at least not so much trouble to the environment.
However, after all, virtual currency is a big impact on physical currency, and it may also be used for tax evasion, etc., or cannot be tolerated by the relevant departments of various countries, and the application prospects are worrying.