Tesla CEO Elon Musk has been open to showing his support for cryptocurrencies. However, after the recent downfall of these digital currencies, Musk and his company Tesla have ditched Bitcoin and resume to support Dogecoin, according to Forbes reports.
Booking all-time highs in just November previous year, cryptocurrencies have witnessed their values drop dramatically across the board. With the U.S. Federal Reserves and the other central banks rising interest rates to rein in inflation in their countries, investors had their eyes on relatively safer and traditional investment options.
This means that investments are risky when it comes to cryptocurrencies that have lost their shine, something that has been proven with recent drastic price falls in the cryptocurrency market. From their highest three trillion valuations, crypto markets have dwindled to less than a third in less than a year. The most prominent name of cryptocurrencies, Bitcoin, has lost its representatives, including Elon Musk.
At the beginning of 2021, Musk’s company Tesla made an investment of $1.5 billion in Bitcoin, and another month later, Tesla also began accepting the digital currency as payment for its electric mobility solutions. Just after public backlash over environmental reasons for Bitcoin usage, Tesla stepped back from its decision. Although, it retained its Bitcoin holdings while resuming to accept the altcoin for payments on merchandise.
Post the cryptocurrency flump and the economic uncertainty that came together, though; the organisation liquidated almost all of its Bitcoin holdings last month, Forbes mentioned in its report. However, Musk continues to retain his belief in Dogecoin, a cryptocurrency he has backed many times over in the past.
Musk revealed in an interview with the Full Send Podcast that he is supporting Dogecoin because the altcoin does not take itself too seriously. But, it has “memes and dogs” and “a sense of humor.”
Musk has faith that the “memecoin”, as it was initially designed to be, has a better “total transactional throughput capacity” in comparison to Bitcoin. This is the main reason that Musk, who has earlier supported Dogecoin, plans to continue purchasing the Bitcoin rival in the future as well and will resume supporting it publicly.
Companies owned by Musk, Tesla and SpaceX, resumed accepting Dogecoin as a payment mode for their merchandise. After all of Musk’s efforts, Dogecoin continues to decline at around six cents, a long haul from the 70-cent high it witnessed last year.
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