The Chief Executive Officer of Tesla, Elon Musk has announced that the company will now accept Dogecoin(DOGE) as a means of payment for all DOGE-eligible merchandise available in Tesla stores. All such products can be purchased by sending DOGE to the company’s Dogecoin Bitcoin Wallets.
While the company will now accept Dogecoin as payment, they clarified that all other forms of cryptocurrency including Bitcoin and Ethereum will not be accepted as a means of payment by the firm. The company made this clear on their website where they stated that only the DOGE token will be received as payments while dissuading customers from attempting to push through the use of other assets. The company added that digital assets asides from Dogecoin transferred as payments will not be refunded.
In addition, all merchandise purchased using Dogecoin can’t be exchanged, returned, or canceled as all sales executed via DOGE will be considered as finalized and will not be refunded. A decision many internet users supported. Reddit user Jimmybly170 posted ”Makes sense because people could just sit around and return something when the price of doge goes up”.
Before this announcement, Tesla had earlier made the confirmation that it will soon start accepting Dogecoin for merchandise purchases in an announcement that saw the meme coin rise in price by 25%. Just few hours after executing the proposal, the coin price made an 18% gain. Merchandise that is buyable with DOGE includes the Cyberquad for Kids (12,020 doge/ about $2,320), the Cyberwhistle (300 doge/ about $58), and the Giga Texas Belt Buckle (835 doge / about $161).
Billy Markus, the obviously excited creator of the meme coin immediately replied to the tweet declaring the commencement of Tesla’s intention with a call to all members of the Dogecoin community. He tweeted ” Alright Dogecoin community, you know what to do”.
The DOGE community’s response was immediate and positive with many confirming they have made purchases with the coin. One such pro-dogecoin tweep is Komaandy Dogecoin who posted a picture of their online order with the caption, ”Tesla Tequila on the way to Germany”.
Elon Musk, a long-running supporter of DOGE, the Japanese Shiba Inu-themed crypto that was started as a joke in 2013 had also started accepting bitcoin as a form of payment for Tesla cars back in March 2021 but stopped the initiative only 49 days after it began when concerns were raised on the environmental impact of fossil fuel used in bitcoin mining. In a statement by Musk on Tesla’s decision to stop collecting Bitcoin, he said that cryptocurrencies like bitcoin are very good on several levels and he believes in their promising future, a faith that cannot come at the expense of the environment. For now, it remains unclear if Doge will be accepted in replacement of Bitcoin as payment for cars.
Based on energy consumed per transaction, Dogecoin currently does not consume as much energy as Bitcoin but remains an energy-intensive cryptocurrency as explained by digital currency economist, Alex de Vries. Dogecoin’s smaller energy per transaction compared to Bitcoin comes solely due to its being a less valuable asset.
Elon Musk said in May that he started working in collaboration with the developers of Dogecoin to improve system transaction efficiency. He also remarked that his support of DOGE is because it felt like the people’s crypto. Many people he spoke with on the production lines at Tesla and SpaceX owned Doge and were neither financial experts nor Silicon Valley technologists.
Co-founder of the investment firm Bitcoin IRA Chris Kline said Musk has always been an advocate for the crypto community and his latest announcement will begin a new era of commerce and trailblaze a path for altcoins to increase their use case.
In December 2021, Musk aired his thoughts towards DOGE and compared the coin to the leading cryptocurrency, Bitcoin. He claimed Dogecoin was a better means of payment even though the coin started as a joke, the slightly inflationary character of the coin ensures people will rather spend it than keep it as a store of value.
SpaceX which is another of Elon Musk’s enterprises started accepting Dogecoin in May 2021 and plans to send a rocket named after the coin to the moon in 2022.