Well-known CEO of Tesla Motors and SpaceX Elon Musk has sent another shock to the cryptocurrency market. The richest man in the world announced that Tesla will accept Dogecoin (DOGE) on an experimental basis as a means of payment for its goods. He wrote the following on Twitter:
The news seems to be just the kind of push that the DOGE price needed, which has been stagnant lately. In the last hour since his tweet, the price of DOGE has risen by about 25%. DOGE is now trading at 0.2055 USD and seems ready to go even higher. However, the meme cryptocurrency is still about 30% lower in the 3-month time frame and has a long way to go if it wants to break its $ 0.66 high.
The new announcement from the richest man in the world comes immediately after he reiterated the reasoning of his preference for Dogecoin as a trading currency over the pioneering cryptocurrency, Bitcoin. Musk said Dogecoin trading per second and day trading had more potential than Bitcoin in an interview with Time magazine as part of the events that marked him as the Person of the Year for 2021.
The announcement is also a possible confirmation of what the community has been speculating about since last month. Last month, rumors surfaced that the electric vehicle manufacturer was planning to allow Dogecoin payment. The Tesla source code review showed the “Order at SHIBA” option included in the payment completion options. Twitter users concluded that the option may have been linked to DOGE at the time, as Musk said the only meme currency he still supported was Dogecoin.
Tesla will buy some merchandise with the Doge and we’ll see how it goes
Bee closer inspection by a Twitter user, “Tree_of_Alpha”, the code was found to be redirected to an “edit” payment page when it tried to pay with DOGE, but not when it tried with SHIB.
While the leaked code also includes the “Pay with Bitcoin” option, Elon has not decided when the feature will be released. However, Tesla still has plans to resume the adoption of Bitcoin, as stated in their report for the third quarter.
Whether Tesla’s latest announcement will be the catalyst DOGE needs to reach the much-discussed $ 1 price remains to be seen. But so far the news has had a huge positive effect on the price. However, how long will this last?