On Friday, electric vehicle maker Tesla began accepting Dogecoin, a dog-themed cryptocurrency, as payment for some merchandise on website
The price of Dogecoin increased by 11% when it was included as a payment option on the Tesla website. With a market valuation of $25.2 billion, Dogecoin is now the 11th biggest cryptocurrency coin. But a recent drop in the larger crypto market has brought Dogecoin’s price to its lowest point since April 2021. It is still down 74% from its all-time high reached in May of last year.
The cryptocurrency, which began as a joke coin, could only be used to purchase a tiny number of products. A whistle in the shape of Tesla’s Cybertruck costs 300 doge, or around $59 at the time of writing. A commemorative belt buckle honoring Tesla’s Gigafactory in Texas was selling for 835 doge ($164) on eBay. Plans have been in the works for a long time to take Dogecoin as payment. “Tesla will make some items buyable with Doge & see how it goes,” Musk tweeted in December.
Last year, the electric car maker briefly accepted bitcoin payments for its products, including its cars. But, that soon came to a halt in May 2021 after Musk voiced concerns about the environmental damage that bitcoin mining does. Dogecoin mines with less electricity than Bitcoin, owing to its lower value. Also, Musk stated that he was working with Dogecoin’s developers to increase the currency’s efficiency, albeit there is currently no apparent method to do so without lowering its value. Block’s CEO, Jack Dorsey, has revealed intentions to create an open Bitcoin mining system that will make the cryptocurrency “more dispersed and efficient.”