Tesla may start accepting Dogecoin. What do the experts think?

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Rumors have begun to circulate on Twitter that Tesla may soon begin accepting payments for its electric vehicles in Dogecoin. The source of these rumors was YouTube blogger Matt Wallace. He wrotethat Tesla will add the ability to pay in Dogecoin after the release of the Robinhood cryptocurrency wallet, reports RBC Crypto.

It was recently revealed that online broker Robinhood has begun testing its own cryptocurrency wallet. which will allow users to exchange bitcoins and other digital assets. At the moment, the broker’s clients can trade digital currencies and exchange them for regular money.

Back in February of this year, online broker Robinhood was named the largest holder of Dogecoin. This conclusion was made by the co-founder of the analytical company Elliptic Tom Robinson. According to him, the broker may own a wallet that stores about 29% of the entire Dogecoin emission, since the date of the wallet creation coincides with the date when the company began supporting altcoin transactions.

Tesla and cryptocurrency

US residents have already had the opportunity to purchase Tesla electric vehicles for cryptocurrency. In February of this year, the company announced the purchase of bitcoins for $ 1.5 billion, and at the end of March it announced that it had begun selling electric vehicles for the first cryptocurrency. Also at the end of March, Tesla sold $ 272 million worth of bitcoins with a profit of $ 100 million. As of September 23, the company owns 43 thousand bitcoins.

However, in mid-May, Tesla CEO Elon Musk criticized Bitcoin and announced that the company would temporarily stop using cryptocurrency as a means of payment. Musk explained that his company stopped using bitcoin due to the unsustainable way of mining it. The head of Tesla explained that the company cannot afford to harm the environment, so it will not accept cryptocurrency as payment until it starts mining using renewable energy sources.

Mask and Dogecoin

That Dogecoin Could Become His Favorite Cryptocurrency Elon Musk stated back in 2019. Then the altcoin community on Twitter jokingly chose a businessman as the new head of the project. After that, Musk called himself “the former CEO” of Dogecoin and published memes with altcoin.

Musk’s active interest in Dogecoin resumed in early 2021. In addition to memes, the businessman began to talk about the advantages and disadvantages of altcoin. For example, Musk considered the main disadvantage of Dogecoin to be the storage of coins on a small number of addresses. He even offered to pay large altcoin holders to sell the coin. Musk also announced the purchase of Dogecoin for his newborn son.

The Tesla CEO mentioned Dogecoin during his speech on Saturday Night Live. After that, altcoin surpassed Bitcoin in popularity in Google search results. Later it became known that another company Elon Musk – SpaceX will accept Dogecoin as payment for launching a space satellite into the orbit of the moon.

Against the background of the popularity of Dogecoin in early May and Musk’s statements, the value of the digital coin renewed its all-time high at $ 0.73 (an increase of 18,150% since the beginning of the year). After that, the altcoin rate began to decline. On September 23, it is trading at $ 0.22 (down 71% from an all-time high).

In the summer, Elon Musk continued to post memes about Dogecoin on Twitter, but the altcoin rate did not react to this. In mid-August, it became known that the representative of Elon Musk, Jared Birchell, entered the updated composition of the Dogecoin Foundation advisors. He will oversee legal issues.

The Dogecoin Foundation is a non-profit organization that develops and maintains altcoin functionality. It was created in 2014, but later ceased operations. The organization resumed its activities in August this year.

Tesla и Dogecoin

Immediately after the announcement of the temporary suspension of accepting payment in bitcoins by Tesla, Elon Musk arranged a survey on his Twitter page. Businessman asked subscribers if they would like the automaker to start selling EVs for Dogecoin. More than 3.9 million users took part in the survey. Most of them (78%) supported the addition of Dogecoin to Tesla’s payment methods.

Scenario probability

It is possible that Tesla may start accepting Dogecoin for payment, says Yuri Mazur, head of data analysis at CEX.IO Broker. In his opinion, in this case, the altcoin rate may show growth. However, the market may not react to this news, since it is already wary of the statements of Elon Musk and the companies affiliated with him, the analyst explained.

A distinctive feature that can discourage investors from buying Dogecoin is the coin’s high dependence on external factors, Mazur explained.

“Investors want to see infrastructure, new solutions and a developed ecosystem. In the meantime, Dogecoin can boast exclusively of the famous billionaire’s twitter support, ”the expert added.

Dogecoin will be taken seriously by market participants only after altcoin developers present innovative technologies and solutions, Mazur summed up.

Dogecoin is a “meme-coin” whose value is questionable, says Maria Stankevich, Development Director of the EXMO crypto exchange. According to her, Musk’s desire to make money on course manipulations tarnishes the reputation of the entire crypto market, which many continue to compare with casinos and roulette.

“I have little faith that Tesla will actually add Dogecoin to payment methods, and if it does, it will only be linked to fiat currencies,” Stankevich said.

In the case of adding Dogecoin to Tesla payment methods, the altcoin rate will undoubtedly go up, the expert predicted, as market participants will start buying the coin. In this case, Musk will have another opportunity to make money by selling Dogecoin at an inflated rate, Stankevich explained.

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