Dogecoin Prices Soar After Elon Musk Announces Plan to Develop Cryptocurrency
- Sentiments made on Twitter by Tesla founder Elon Musk has seen bitcoin hit a two-month low while dogecoin price has gone up once again
- Dogecoin rallied after Musk announced that he was working to improve its system transaction efficiency
- Bitcoin slump came after the Tesla chief tweeted that his car making company had decided not to accept payments in BTC
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Bitcoin hit a two-month low on Friday, May 14, and is staring at its worst week since February 2021, while Dogecoin price has gone up once again.
Source: Getty Images
Both cryptocurrencies are reacting to different sentiments made on Thursday, May 13, by Tesla founder Elon Musk.
A tweet posted by Musk about Dogecoin caused the cryptocurrency's price to skyrocket once again, proving his dominance as the "Dogefather."
On the other hand, the Bitcoin slump came after the Tesla chief tweeted that his car making company will no longer accept payments in BTC.
In the tweet, the automobile innovator announced he was working to improve Dogecoin's system transaction efficiency.
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“Working with Doge devs to improve system transaction efficiency. Potentially promising," Musk tweeted.
The rather simple statement immediately lead Dogecoin to surge upwards by 18%, according to Coinbase.
It is still unclear if Musk was referring to energy consumption, ease of use, or currency suitability.
In any case, one tweet from him these days is enough to dictate the course of any cryptocurrency.
It's worth noting that dogecoin was nearly worthless at the beginning of the year.
At the start of the year, one Dogecoin was worth less than half a penny, but it has since risen to over half a dollar.
According to CoinMarketCap.com, it has risen to become the fourth-largest cryptocurrency by market capitalization.
This is Dogecoin's second pump since Musk's appearance on Saturday Night Live.
Musk also announced earlier this week that SpaceX, his commercial rocket company, would launch the "DOGE-1 Mission to the Moon" in the first quarter of 2022.
He announced on Twitter that the company's latest satellite would be known as Doge-1.
Not only that but the whole mission will be paid for in Dogecoin, which is a first.
As a result, Doge would be the first cryptocurrency to reach space.
It will also be the first meme in space, which is ironic.
Meanwhile, Briefly News reported that billionaire Elon Musk has said his multi-billion-dollar company, Tesla, will no longer be accepting payments in Bitcoin. This amid growing concerns that mining of the popular cryptocurrency may have detrimental effects on the environment.
Taking to his personal Twitter account, Musk expressed concerns over the increased use of fossil fuel to mine Bitcoin. The stock fell by thousands of dollars just minutes after Musk posted his 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."
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Source: Briefly News
Kelly Lippke (Senior Editor) Kelly Lippke is a copy editor/proofreader who started her career at the Northern-Natal Courier with a BA in Communication Science/Psychology (Unisa, 2007). Kelly has worked for several Caxton publications, including the Highway Mail and Northglen News. Kelly’s unique editing perspective stems from an additional major in Linguistics. Kelly joined Briefly News in 2018 and she has 14 years of experience. Kelly has also passed a set of trainings by Google News Initiative. You can reach her at kelly.lippke@briefly.co.za.
Mxolisi Mngadi (Editor) Mxolisi Mngadi is an entertainment reporter. He graduated in 2002 from Damelin with a Diploma in Journalism, majoring in African and International Studies, Journalism and Electronic Media. He then started his journalism career at the Daily Sun newspaper, went on to The Citizen, and worked as a senior reporter at News24. He has been a writer for more than 15 years.
