Tesla will start accepting Dogecoin: rumors vs reality

Twitter users are actively discussing the possibility of altcoin support by an automaker. Why it may happen and what does Robinhood have to do with it?
Tesla will start accepting Dogecoin: rumors vs reality

Rumors began to spread on Twitter that Tesla may soon start accepting payments for its electric cars in Dogecoin. The source of these rumors was YouTube blogger Mat Wallace. He wrote that Tesla will add the ability to pay in Dogecoin after the release of the cryptocurrency wallet Robinhood.

On September 21, it became known that online broker Robinhood began testing its own cryptocurrency wallet. which will allow users to exchange bitcoins and other digital assets. At the moment, the broker’s clients can trade digital currencies and exchange them for regular money. The exact launch date of the Robinhood cryptocurrency wallet is not yet known.

Back in February of this year, online broker Robinhood was called the largest holder of Dogecoin. This conclusion was made by Tom Robinson, co-founder of analytical company Elliptic. According to him, the broker may own a wallet that holds about 29% of the entire Dogecoin issue, as the date of the wallet’s creation coincides with the date the company began supporting operations with the altcoin.

Tesla and cryptocurrency

U.S. residents have already had the opportunity to buy Tesla electric cars for cryptocurrency. In February this year, the company announced a $1.5 billion bitcoin purchase, and at the end of March it announced that it had started selling electric cars for the first cryptocurrency. Also at the end of March, Tesla sold $272 million worth of bitcoins for a profit of $100 million. As of September 22, the company owns 43 thousand bitcoins with a value of $1.8 billion (based on the current exchange rate at 16:00 MSK).

However, in the middle of May, Tesla CEO Elon Musk criticized bitcoin and announced that the company would temporarily stop using the cryptocurrency as a means of payment. Musk explained that his company refused to use bitcoin because of the unenvironmental way of mining it. The head of Tesla explained that the company cannot afford to harm the environment, so it will not accept the cryptocurrency as payment until it is mined using renewable energy sources.

Musk and Dogecoin

Dogecoin could become his favorite cryptocurrency, Elon Musk announced back in 2019. Then the altcoin community on Twitter jokingly selected the businessman as the new head of the project. After that, Musk called himself the “former CEO” of Dogecoin and published memes with altcoin.

Musk’s active interest in Dogecoin resumed in early 2021. In addition to memes, the businessman began to talk about the advantages and disadvantages of the altcoin. For example, Musk considered the main disadvantage of Dogecoin to be the storage of coins on a small number of addresses. He even offered to pay large altcoin holders to sell the coin. Musk also reported buying Dogecoin for his newborn son.

The head of Tesla mentioned Dogecoin during his appearance on the American show Saturday Night Live. After that, altcoin surpassed bitcoin in Google search results. Later it became known that another company of Ilon Musk – SpaceX will accept Dogecoin as payment for the launch of a space satellite into the orbit of the moon.

Against the backdrop of Dogecoin’s popularity in early May and Musk’s statements, the value of the digital coin renewed its all-time high of $0.73 (up 18,150% since the beginning of the year). After that, the altcoin rate began to decline. On September 22, it traded at $0.21 (down 71% from the all-time high).

Over the summer, Elon Musk continued to post memes on Twitter about Dogecoin, but the altcoin exchange rate did not react to it. In mid-August, it became known that Ilon Musk’s representative Jared Birchall joined the renewed Dogecoin Foundation’s advisors. He will be in charge of legal issues.

Dogecoin Foundation is a nonprofit organization that develops and maintains the altcoin. It was founded in 2014, but later ceased operations. The organization resumed its activities in August of this year.

Tesla and Dogecoin

Immediately after the announcement that Tesla had temporarily stopped accepting bitcoin payments, Elon Musk took a poll on his Twitter page. The businessman asked his followers if they would like the automaker to start selling electric cars for Dogecoin. More than 3.9 million users took part in the survey. Most of them (78%) supported the addition of Dogecoin to Tesla’s payment methods.

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