The latest cryptocurrency in the headlines, Dogcoin has sparked a frenzy. Those who have never bought a stock are suddenly making their first dive into the crypto stock market.
Dogcoin started Bitcoin as a cheating meme, taking the popular “Doge” meme and making it into crypto. Dogecoin madness began when Elon Musk first tweeted about cryptocurrency, telling his followers: “Dogecoin may be my favorite cryptocurrency. It’s great.”
Musk’s simple support led to a huge jump in the Dogcoin stock price. Cryptocurrency has now become the fourth largest cryptocurrency by market capitalization. However, after calling DogCoin a “hustle” by Elon Musk in his appearance on Saturday Night Live, Dogcoin stock fell more than 20%.
Dogcoin’s market cap rose to $ 10 billion following this tweet. pic.twitter.com/cqMA1irxSm
– Trading View (@tradingview) May 13, 2021
Nevertheless, in the last twenty-four hours, once again Dogcoin stock jumped by 30% because of Musk. On Thursday, Tesla’s CEO tweeted that bitcoin would no longer be used to pay for Tesla vehicles and that Dogcoin could be used instead, floating the idea in the following tweet: “Do you want Tesla Doge Accept? ” Musk received 3.9 million responses and about 78% voted yes.
Musk tweeted, “Working with Doge Developers to Improve System Transaction Efficiency. Potentially Promising”, According to CoinBase, Dogcoin’s stock rose 30.2% to $ 0.54 as of Friday morning. Due to Elon Musk’s tweet, the value of Dogcoin increased from $ 10 billion to $ 67 billion when trading volume increased.
To be clear, I strongly believe in crypto, but it cannot drastically increase the use of fossil fuels, especially coal.
– Elon Musk (@elonmusk) May 13, 2021
Why is Tesla not accepting bitcoin now?
Elon Musk said that Tesla would stop accepting bitcoins due to environmental concerns.
On May 12, Musk tweeted: “We are concerned about bitcoin mining and the rapidly increasing use of fossil fuels for transactions, particularly coal, which has the worst emissions of any fuel.”
Tesla and Bitcoin pic.twitter.com/YSswJmVZhP
– Elon Musk (@elonmusk) 12 May 2021
He continued, “Tesla will not be selling any bitcoins and we intend to use it for transactions as soon as mining transitions are more sustainable. We are also looking at other cryptocurrencies that use bitcoin’s energy / transaction Uses
Musk will now be looking for more environmentally friendly cryptocurrencies, such as Dogcoin.
Bitcoin’s carbon footprint
Recently, bitcoin has been criticized due to excessive energy usage. It was reported that bitcoin used more energy in one year than American Airlines this year.
With Tesla’s withdrawal from bitcoin, cryptocurrency stocks fell 15%.
Elon Musk assures that he still supports cryptocurrency; However, he is concerned about the use of fossil fuels.
Do you want Tesla to accept Doge?
– Elon Musk (@elonmusk) 11 May 2021
Dogcoin’s Environmental Impact and Origin
Billy Marcus, one of the creators of Dogcoin, was recently questioned about the environmental impact of cryptocurrencies. Marcus replied, “I made a dog for like 2 hours, I didn’t think anything.”
Despite Musk’s support for Dogcoin, it uses the same methods as Bitcoin in the same way. The amount of computing power required for these cryptocurrencies requires a significant amount of fossil fuels.
In 2013, Dogcoin was made as a simple joke, so it was by no means a serious contender in the crypto world. After all, the mascot for cryptocurrency is the famous Sheeba Inu Doge meme. Dogcoin was meant to make fun of the huge amounts of various cryptocurrencies that were generated at the time.
Nevertheless, after gaining popularity on Reddit and backed by Elon Musk, Dogcoin stock reached new heights. Those buying Dogcoin stock made huge profits earlier this year.
– Sen 10 Oh (@ Mario Ce12830459) 11 May 2021
Many success stories of thousands, even millions of dollars earners, have inspired newcomers of cryptocurrency to join it.
Following the rise of Dogcoin stock, the cryptocurrency is now negotiating to work with Elon Musk’s SpaceX, their space transportation company. SpaceX is reported to begin a moon mission in 2022 that will be funded by Dogcoin.
Musk tweeted on May 9: “SpaceX is launching satellite Doge-1 to the moon next year. Mission payback in Doge, first crypto in space, first meme in space. To Moonoon !!”
With Dogcoin continuing to make waves, it is difficult to determine the future that cryptocurrency has in store. As Elon Musk has become an informal public figure for Dogcoin, the success of cryptocurrency depends on the esoteric billionaire.