Tesla’s CEO Elon Musk said that consumers may now purchase some items of merchandise using Dogecoin. The Cyberquad for Kids (12,020 doge / approximately $2,320), the Giga Texas Belt Buckle (835 doge / approximately $161), and the Cyberwhistle (300 doge / approximately $58) are all products that may be purchased using the meme-based money. According to Business Insider, Dogecoin was up 16% to roughly $0.20 after the revelation.
Musk first revealed the project on December 14th on Twitter, when he said that the business will “see how it works” with the bitcoin payment option. It is unknown whether or not Tesla would ever accept Dogecoin as payment for its automobiles, which Musk has previously said maybe his favorite cryptocurrency.
The effort seems to have backing beyond the United States, with the S3XY Mug available for 150 Doge (about $29) through the UK Tesla shop. As of this writing, it looks since if Dogecoin is the only option to purchase some things, as their standard payment symbols have vanished.
Dogecoin support comes only months after Tesla began taking Bitcoin for vehicle sales, only to discontinue the practise 49 days later, citing worries over the usage of fossil fuels in Bitcoin mining. “Cryptocurrency is a brilliant concept on many levels, and we think it has a bright future,” Elon Musk said in a statement. “However, this must come at the expense of the environment.”
Tesla merch buyable with Dogecoin
— Elon Musk (@elonmusk) January 14, 2022
According to TRG Datacenters’ study, Dogecoin now consumes much less energy each transaction than Bitcoin. However, as digital currency expert Alex de Vries highlighted in May, Dogecoin remains an energy-intensive proof-of-work cryptocurrency. Its lower energy consumption per transaction is mostly due to the fact that it is now a less valued asset than Bitcoin.
Musk, for his part, said in May that he was collaborating with creators of Dogecoin to “increase system transaction efficiency.” He has been forthright in expressing his support for the cryptocurrency, which began as a jest based on the Doge meme. “Many of the folks I spoke with on Tesla’s manufacturing lines or at SpaceX producing rockets own Doge,” Musk told CNBC in October. “They are not investment bankers or Silicon Valley engineers. That is why I chose to support Doge; it seemed like the cryptocurrency of the people.”
Another of Elon Musk’s enterprises, SpaceX, began taking Dogecoin payments in May and promises to launch a DOGE-1 spacecraft to the Moon next year.
The price of dogecoin soared more than 15% on Friday before reversing course after Tesla announced that it would accept the cryptocurrency as payment for select items.
Tesla CEO Elon Musk announced on Twitter early Friday that dogecoin may be used to buy Tesla products.
According to Coindesk statistics, Dogecoin reached $0.20 per coin around 01:19 ET before reducing some of its gains. At 07:06 ET, it was up more than 9% to $0.18.
The cryptocurrency, which began as a joke coin, could only be used to purchase a tiny number of products.
A whistle in the form 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 works,” Musk tweeted in December.
Musk is a prominent advocate of dogecoin, and his tweets have a significant impact on the cryptocurrency’s price.
With dogecoin, there are no refunds
Using dogecoin to purchase Tesla products is subject to a number of limitations and conditions.
To send digital money to Tesla, users will require a dogecoin wallet. Furthermore, according to the company’s website, “if an order is overpaid in Dogecoin, the excess amount will not be reimbursed to the original method of payment.”
The Dogecoin network may take up to six hours to validate the payment, according to Tesla.
Furthermore, any orders paid for with dogecoin cannot be canceled or reimbursed, according to the firm. If a consumer purchases Tesla items via the official shop using regular payment methods, the product may usually be returned within 30 days of receipt.
Tesla is not the first company to accept cryptocurrencies as payment. Tesla said last year that it had purchased $1.5 billion in bitcoin and that it intended to accept bitcoin payments. Musk then withdrew his support for bitcoin due to environmental concerns. The bitcoin network consumes a lot of energy via a process called mining.
According to TRG Datacenters’ study, Dogecoin utilizes much less energy. Last year, Musk said that he will collaborate with dogecoin developers to increase transaction efficiency.