Musk, who has always been fond of "bringing goods" for Dogecoin, has recently made a big move.
On January 14, local time, Tesla Chairman Elon Musk announced on social media that Tesla merchandise began to accept Dogecoin purchases.
At the same time, some of the goods on Tesla's North American website can already support Dogecoin payments. Includes "Cyberwhistle Whistle", "Cyberquad for Kids Kids Moto" and "Giga Texas Belt Buckle". Prices range from 300 Doge to 12020 Doge.
Affected by this news, Dogecoin rose short-term during the day, expanding its intraday gains to 20% and now rising more than 15%.
Pan Helin, member of the Information and Communications Economic Expert Committee of the Ministry of Industry and Information Technology and executive dean of the Digital Economy Research Institute of Zhongnan University of Economics and Law, told the Securities Times reporter that the core of Tesla's attempt is still to speculate on Dogecoin to make a profit. In his view, the private minted part of virtual currency will not become the mainstream way of online payment in the future. If virtual currency wants to become a payment method, it must maintain the stability of the currency value, and high volatility virtual currency cannot become a stable transaction currency.
Musk has repeatedly "Amway" Dogecoin
Tesla has also supported Bitcoin for payments
In 2013, to satirize the speculative heat of the virtual currency market, Jackson Palmer, a software engineer at Adobe, and Billy Marcus, a software engineer at IBM, jointly launched Dogecoin, based on the Shiba Inu model.
It is reported that Dogecoin was originally just an electronic currency created by Billy Marcus, who was very interested in electronic money, for the improvement of Bitcoin, but it quickly became popular in the electronic money community after its release, with more than 1 million people visiting within 30 days of the platform's launch.
According to the vision of the two founders, they want to create an electronic currency that is more widely used in real life than by speculators. In 2018, Dogecoin's market capitalization exceeded $1 billion for the first time, and as of now, Dogecoin's market capitalization ranks eleventh among popular cryptocurrencies.
According to industry analysts, the reason for the surge in Dogecoin is due to the "belting" of star figures, of which Musk is one of the best "goods" experts, and even calls himself the "godfather of Dogecoin".
The announcement that some Tesla products support Dogecoin payments has further increased the market value of Dogecoin.
It is understood that at present, Tesla North America officially only supports Dogecoin to purchase some peripheral products, and does not support the use of Dogecoin to purchase car products. At the same time, Tesla also stressed that once purchased, it will not support returns.
Independent automotive industry analyst Zhang Xiang told the Securities Times reporter that at present, Dogecoin has a high degree of attention in the virtual currency circle, and Tesla has launched this payment method, more for the purpose of "rubbing heat" to attract Dogecoin holders or fans to pay attention to Tesla's products.
In fact, before supporting Dogecoin, Tesla also supported Bitcoin payments. On March 24, 2021, Tesla Chairman Elon Musk announced on Twitter that Tesla's products can be purchased with Bitcoin.
But less than two months later, Musk announced on social media: "Tesla stops using Bitcoin to buy car products." ”
Pan and Lin told the Securities Times reporter that although Dogecoin is also a mining currency, it is different from Bitcoin, Dogecoin is an unlimited amount of currency, and its volatility is higher. In his view, the private minted part of virtual currency will not become the mainstream way of online payment in the future.
Is Dogecoin payment sustainable?
Having experienced Tesla's "flashback" on Bitcoin payment, many netizens are worried about whether this Dogecoin payment can last?
In this regard, Zhang Xiang said that there is still uncertainty about whether Dogecoin as Tesla's payment method can be sustained. At present, the fluctuation of Dogecoin is large, and there are risks in stability and value preservation. When Dogecoin appreciates, Tesla will enjoy corresponding dividends, and when Dogecoin depreciates, Tesla will also bear certain fluctuations. Overall, though, for Tesla, it can either open this payment method or choose to turn it off.
Previously, two tipping apps on Facebook have supported tipping via Dogecoin; video game Twitch announced that the company has accepted Dogecoin as its payment subscription method.
Pan and Lin believe that Tesla's use of Dogecoin as a payment method is not sustainable. Because even in the field of virtual currency, Dogecoin is not a promising virtual currency, and the founders of Dogecoin created Dogecoin itself to satirize virtual currency.
It is understood that Palmer, one of the founders of Dogecoin, has launched a series of sharp criticisms of virtual currencies on social media, saying that billionaires are manipulating the cryptocurrency market and that he will not return to the cryptocurrency circle.
Source: Securities Times, wwwstcncom
Editor: Yue Yanan