On May 18, Elon Musk, the founder of such corporations as Tesla and SpaceX, is actively participating in the development of Dogecoin. He supposes that this digital asset is quite promising and emphasizes his cooperation with the token’s creator.
Notably, earlier, the management of Tesla decided not to accept bitcoin as a payment method for its electric vehicles. The high power consumption of BTC was the main reason to stop accepting it for car purchases. Representatives of Tesla emphasize that they are considering the use of other more effective virtual assets.
According to Elon Musk, Dogecoin is one of such currencies as it requires less energy. Analysts at Business Insider suppose that such a decision is justifiable, as one Dogecoin transaction requires 6,000 times less energy than one BTC transaction. Notably, China accounts for the most energy costs associated with bitcoin. More than 75% of bitcoin mining around the world is done in China. The energy for mining and other operations is provided by Chinese coal-fired power stations.
Previous announcements made by Elon Musk often had an influence on the Dogecoin price. In February 2021, when the CEO of Tesla bought some coins for his son, the price of Dogecoin jumped by ¼. Later, he said that “Dogecoin is the people's crypto”, boosting the asset even higher. As a result, at the beginning of May 2021, Dogecoin became the best instrument to invest in as its price skyrocketed by 260 times.
