Tesla starts accepting once-joke cryptocurrency Dogecoin
Image credit: The Gaurdian
Tesla, the electric carmaker led by billionaire Elon Musk, has begun to accept Dogecoin as payment for brand merchandise. Dogecoin is a cryptocurrency that began as a joke.
Mr Musk announced the news on Twitter on Friday, a month after teasing the plans.
The announcement caused Dogecoin’s value to skyrocket, albeit it later plummeted.
Mr Musk’s comments have had a significant impact on the pricing of digital currencies such as Dogecoin and Bitcoin.
The move comes a month after Mr Musk suggested Tesla test out the digital currency as a payment option, sending Dogecoin prices up more than 14% at one time.
Dogecoin was once unknown, having been created in 2013 as a spoof of the cryptocurrency frenzy. Last year, though, its worth increased by about 4,000 per cent, thanks in part to Mr Musk’s promotion.
He has termed the coin the “people’s crypto” and stated that his space company, SpaceX, will accept it as payment.
He dubbed it “a hustle” after being challenged to clarify it during an appearance on the sketch comedy show Saturday Night Live.
It’s not the only digital coin that has piqued the billionaire’s interest, as he has a sizable internet following.
Bitcoin prices soared last year when Tesla announced that it had invested in the currency and would allow users to purchase cars with it. However, the corporation later abandoned that plan.
Mr Musk, who has Bitcoin among his crypto holdings, expressed concern about the amount of energy required to manufacture the currency.
Tesla now only accepts Dogecoin as a digital currency.
Tesla-branded belt buckles (835 Doge, or about $162; £118) and children’s all-terrain vehicles (12020 Doge, or approximately $2,280; £1,670) are currently available for purchase. According to the company’s website, the purchases are non-refundable.