The value of Dogecoin has increased after Elon Musk tweeted that it can be used to buy Tesla merchandise.
Elon Musk had stated in a tweet that "Tesla merchandise is buyable with Dogecoin."
Elon Musk has stated that Dogecoin is a better currency than Bitcoin when it comes to transactions per day
The value of meme-based cryptocurrency dogecoin skyrocketed when billionaire Elon Musk sent a five-word tweet. Musk announced on Friday that the dogecoin may be used to purchase Tesla Inc items. At the time of writing, a single unit of dogecoin was worth $0.1981. The price has increased by more than 26%.
In a tweet, Tesla's Chief Executive Officer stated that "Tesla merchandise is buyable with Dogecoin."
In no time, #dogecoin quickly rose to the top of Twitter's trending hashtags.
Elon Musk is well-known for using his social media posts to influence the value of dogecoin. According to data from the Coinbase website, his tweets about the in the past, including one in which he labelled it the "people's crypto," have helped the meme coin surge 5,859 percent over 2021.
Musk, who was selected Time magazine's Person of the Year for 2021, repeated his cryptocurrency holdings in October, stating that they are confined to Bitcoin, Ethereum, and Dogecoin. He keeps a close eye on the bitcoin market and routinely tweets his insights.
In an interview with Time, Elon Musk, the CEO of Tesla and SpaceX, stated that Dogecoin is a better currency in terms of daily transactions.
"Bitcoin transactions have a low transaction value and a high transaction cost. It is suitable as a value store, at least on a spatial level. "But Bitcoin is fundamentally not a good alternative for transactional cash," Elon Musk told the magazine.
“Even though it was created as a silly joke, Dogecoin is better suited for transactions." The total transaction flow that you do with Dogecoin in terms of transactions per day has a much higher potential than Bitcoin."
While dogecoin may be inflationary, the entrepreneur, who this year surpassed Amazon founder Jeff Bezos to become the world's wealthiest person, noted that unlike Bitcoin, it has a set number. "And that's actually a good thing," he explained, "because it encourages individuals to spend rather than hoard as a store of value."