Elon Musk, Tesla CEO, has announced that Tesla will now begin accepting Dogecoin as payment for merchandise. “Tesla will make some merch buyable with Doge & see how it goes,” Musk tweeted. The news comes a day after Elon Musk was announced as Time Magazine’s Person of the Year for 2021. Dogecoin’s price has surged by over 20% since the announcement.
Elon Musk prefers Dogecoin over Bitcoin.
The Tesla CEO has been a long time supported of the meme-based cryptocurrency. In May of this year—around the same time he reversed course on Bitcoin—Musk said that Dogecoin could beat Bitcoin “hands down.” The tech billionaire proposed reforms for Dogecoin and similar altcoins, which would entail speeding up its block time and block size and decreasing fees by 100x. The Tesla CEO has been working with Dogecoin developers to try and improve the cryptocurrency in a bid to make it cheaper and more energy-friendly than Bitcoin—the world’s leading cryptocurrency.
Tesla will make some merch buyable with Doge & see how it goes
— Elon Musk (@elonmusk) December 14, 2021
Dogecoin is better for payments than bitcoin.
“Bitcoin is not a good substitute for transactional currency. Even though it was created as a silly joke, Dogecoin is better suited for transactions. The total transaction flow you do with Dogecoin, like daily transactions, is much higher potential than Bitcoin,” the tech billionaire opined. He further emphasized that Bitcoin is more suitable as a store of value, which is why its investors prefer to hold it rather than sell it or use it for payments. “The transaction volume of Bitcoin is low, and the cost per transaction is high,” Musk noted.