Tesla CEO Elon Musk canceled the bitcoin payment the day before, but on the 13th (local time), as he revealed that he is conducting joint research with developers to improve the transaction efficiency of Dogecoin, he abandoned bitcoin and told Dogecoin to’All-in. ‘There are points out that there is a high possibility to do it.
Musk CEO said on his Twitter today, “We are collaborating with the developers of Dogecoin to improve the efficiency of Dogecoin transactions.” “It is very promising.”
As the news was delivered, Dogecoin, which had plunged the previous day due to Tesla’s declaration of stopping bitcoin payments, is rapidly rebounding.
As of 9:30 am on the 14th (Korean time), Dogecoin is trading at 52 cents, up 20% more than 24 hours ago, on Binance, the world’s largest cryptocurrency (virtual currency) exchange.
At the same time, on CoinMarketCap, a global cryptocurrency market relay site, Dogecoin is recording 48.54 cents, up 13.70% from 24 hours ago. With this, Dogecoin has risen again from 6th in the market cap to 4th in the market cap.
This is in stark contrast to Tesla’s cancellation of bitcoin payments the day before and all cryptocurrencies plummeted.
On the previous day, Musk canceled the bitcoin payment through his Twitter, claiming that bitcoin mining is causing environmental problems. As a result, all cryptocurrencies crashed the day before.
In an online statement posted on Twitter, Musk said Tesla will stop using Bitcoin to pay for its electric vehicles. He added that the use of fossil fuels, especially coal, is rapidly increasing as electricity for mining Bitcoin.
He also argued that cryptocurrency is a good idea in many ways, but it has an adverse effect on the environment. Accordingly, Tesla has declared that it will stop paying for electric vehicles until sustainable energy is used to mine Bitcoin.
He also revealed that we are looking for other cryptocurrencies that use less than 1% of the energy used in Bitcoin.
Musk said at the end of the statement that “we are looking for a cryptocurrency that uses less than 1% of the energy used in Bitcoin.” This is interpreted as having Dogecoin in mind.
Bitcoin can be mined only by solving complex calculations, so it consumes a lot of electricity, but Dogecoin is known to consume much less electricity than Bitcoin because you can obtain coins by solving a simple quiz.
Accordingly, it is pointed out in the market that Musk seems to have abandoned bitcoin and chose Dogecoin.
Bitcoin has a market cap of $1 trillion, so that one individual cannot move the market, but Dogecoin has a market cap of only $63 billion as of the 14th, allowing Musk to dominate the market. Musk’s personal fortune as of the day is $159 billion, according to the Bloomberg Billionaire Index. This is the amount that remains after buying all Doji Coins.
Experts are convinced that it seems likely that Musk chose Dogecoin instead of Bitcoin in that it can control the market accordingly.
