Elon Musk reveals Tesla will accept Dogecoin payments

Elon Musk, tech billionaire and CEO of Tesla, announced that the electric car manufacturer will accept Dogecoin payments. The company will accept the memecoin as a payment method for some of its merchandise. 

Tesla open to Dogecoin payments

Earlier on Tuesday, Elon Musk tweeted that Tesla will make merchandise buyable with Dogecoin and “see how that goes”. Musk’s tweet comes after weeks of Dogecoin holders asking Tesla to accept the memecoin as a payment method. 

Tesla’s acceptance of Dogecoin has fueled a bullish narrative in the memecoin’s price, pushing daily gains above 25%. The use of Dogecoin for buying Tesla merchandise is likely to drive the utility and adoption of the memecoin higher. 

Named Time magazine’s person of the year, Musk told in an interview that Dogecoin is better for transactions than Bitcoin. 

Musk said, 

The transaction value of Bitcoin is low, and the cost per transaction is high. At least at a space level, it is suitable as a store of value. But fundamentally, Bitcoin is not a good substitute for transactional currency.

The billionaire believes that though Dogecoin was created as a joke, it is better suited for transactions. He adds, 

Even though it was created as a silly joke, Dogecoin is better suited for transactions. The total transaction flow that you do with Dogecoin is… transactions per day has much higher potential than Bitcoin.

Musk believes that Dogecoin encourages people to spend rather than hoard it as a store of value. This makes the memecoin superior to Bitcoin when it comes to being used as a payment method.