Elon Musk, Tesla’s boss, has informed the world that he is pulling away from Bitcoin because of the energy concerns that surround the world’s largest and most popular cryptocurrency. He also went on to say that he would be putting even more of his weight in favor of Dogecoin. To that end, the tech entrepreneur said that he would be working with Dogecoin collaborators in order to make the cryptocurrency more environmentally friendly. In the last couple of months, the eccentric billionaire has declared himself to be the ‘DogeFather’ and has heightened his support for cryptocurrency.
According to Elon Musk, the joke coin has managed to become his most favorite crypto asset. This is quite obvious from the fact that a lot of his time is spent tweeting about Dogecoin. Recently, he had even spoken about it when he made an appearance on ‘Saturday Night Live’ on CNBC. Due to his concentrated efforts, Dogecoin has managed to gain a lot of prominences and it has currently reached the fifth spot in the cryptocurrency charts. Famous known as ‘people’s crypto’, this may just be the moment it has been waiting for. As compared to Bitcoin, DOGE does consume less energy.
Transactions involving Bitcoin take up about 770KWh, Litecoin takes up 18.522KWh, Ethereum takes 6.25KWh, whereas those involve Dogecoin take up about 0.12KWh. Considering its low energy density, this could be exactly what Musk needs for running the crypto policy at Tesla. In fact, Musk has gone on to make this even easier because he has gotten in touch with part-time developers of the joke coin. He had done this back in 2019. In addition, he has even appealed to crypto whales to part with their DOGE holdings. To convince them, Musk has said that he would be willing to pay off the crypto whales, should they decide to sell their DOGE holdings.
However, it should be noted that doing so many not help him in legitimizing the Bitcoin knock-off. One way to get things going is to highlight the energy benefits that DOGE offers, which is currently just a meager 1.0512 MWh of electricity in a year. This could prove to be a big selling point, as the entire world is calling for a reduction in the carbon footprint. SpaceX, Musk’s rocket business, could also become an important part of the DOGE puzzle. Last week, Musk had announced the launch of a Falcon 9 rocket by the name of DOGE-1, which is paid for by the said cryptocurrency.
This could go a long way in refining it and SpaceX’s Tom Ochinero noted that the joke coin could end up facilitating interplanetary commerce. This pushed up DOGE’s value beyond 50 cents and could work in its favor. Bitcoin had become popular because it was touted as a store of value, which was helped by the fact that it had a cap of 21 million coins. Since DOGE doesn’t have a maximum supply, crypto investors may not take this joke coin very seriously.