Elon Musk announced in a Tweet, “Tesla merch buyable with Dogecoin.” Tesla will now accept Dogecoin as payment for selected merchandise.
Elon Musk’s Tesla to accept Dogecoin as payment
Tesla will now accept Dogecoin as payment for merchandise such as – the $150 Giga Texas Belt feat. the company logo and the recently launched $50 “Cyberwhistle” and “Cyberquad for kids.”
While Elon Musk is a known vocal supporter of Dogecoin, his tweet skyrocketed its shares to more than 14%.
As, Senior Analyst at FxPro Alex Kuptsikevich said, “Some have noted that goods for doge are selling out even faster than for dollars. This news is a good illustration for crypto’s continued penetration of corporate culture.”
Dogecoin, Bitcoin, and Elon Musk
While Tesla will now accept Dogecoin as payment, only three items are available to purchase.
Customers paying with Dogecoin will have to go through various terms and conditions to ensure a tight seal procedure. Clients will also need a Dogecoin wallet that transfers the digital currency to Tesla.
Moreover, the company says that it would require up to six hours to confirm the payment by the network.
However, the company has also said, “If an order is overpaid in Dogecoin, the overpayment amount will not be refunded to the original form of payment.”
Upon accepting Dogecoin as payment, Tesla said The merchandise bought with the digital coin could not be returned, exchanged, or cancelled.
Furthermore, Tesla removed the traditional payment method for buying the Cyberwhistle, Giga Texas Belt Buckle, and the Cyberquad for kids.
Tesla chose Dogecoin over Bitcoin over environmental concerns. Bitcoin uses colossal amounts of energy to produce a single coin. Whereas, Dogecoin coins use remarkably less energy.
What is next for Tesla and Dogecoin?
Elon Musk is a vocal advocate for digital currency, and last year, he said he would work with Deogoin developers.
Musk aims to improve the efficiency of Dogecoin production. Nevertheless, last year Musk bought $1.5 billion worth of Bitcoin. The Autocar maker also started accepting crypto payments for their cars.
However, Dogecoin prices rose by about 4,000% in 2021 after Musk’s tweet. Tesla is also neck-to-neck competition with competitors like Ford Motor and Rivan Automotive.
Ford Motors and Rivian Automotive will launch their electric cars this year.
VP-Research & Strategy, EarthID, a self-sovereign Identity Management Platform Sharat Chandra said, “People are more open to using cryptos for payments. Visa’s recent survey demonstrated that small business owners across nine geographies are willing o accept digital currencies as payment methods.”
Furthermore, Co-founder & CEO of Vistas Media Capital Abhayanand Singh said, “It is considered a serious investment option by a lot of investors and has been supported by top figures like Elon Musk. The extreme volatility observed in Dogecoin has day traders benefit from investing in it. The joke coin now seems very serious and has ranked in the top 10 cryptocurrencies on several charts.”
Dogecoin, since its inception, has given results of return of about 45,000 percent to investors. Tesla will now accept Dogecoin as payment while Elon Musk works with Dogecoin developers to mining eco-friendly coins.