Tesla CEO Elon Musk caused the price of Dogecoin to rise in price because of a simple tweet.
What did Elon Musk say about Dogecoin?
- “Working with Doge devs to improve system transaction efficiency,” Musk tweeted. “Potentially promising.”
Per MarketWatch, the price of Dogecoin jumped 36% in the immediate aftermath of the tweet.
Why did Dogecoin drop Thursday?
Interestingly, Dogecoin dropped in value Thursday because of a similar scenario. Tesla CEO Elon Musk said Wednesday night that Tesla would no longer accept Bitcoin as a form of payment for Tesla.
- Musk said in a tweet: “We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”
- “Cryptocurrency is a good idea ... but this cannot come at great cost to the environment.”
Will Tesla allow Dogecoin?
That said, Musk’s announcement of Bitcoin came after Musk hinted that he might want Dogecoin to be used for purchases. As I explained for the Deseret News, Musk shared a poll that asked if his fans would use Dogecoin to buy Tesla vehicles.
More than 3.9 million votes were placed in the poll. About 78.2% of those votes said “Yes.”