Tesla accepts Dogecoin, price skyrockets
Elon Musk has announced that Tesla will accept the well-known crypto currency Dogecoin as a payment method. The exchange rate of the currency shot up.
It is often not possible to measure exactly where the price decrease or increase is due to cryptocurrency. It is usually a mixture of factors. But today the rise of cryptocurrency Dogecoin is obvious, it has everything to do with Elon Musk and Tesla.
The eccentric entrepreneur has Twitter announced that Tesla will now accept Dogecoin as a method of payment. You can’t buy a new Model 3 or Model S with it, but you can buy merchandise. When the news came out, Dogecoin’s price shot up more than 20 percent. And that at a time when most cryptos, including Bitcoin, are on the decline.
Traders are ready to absorb any dip. Often when a financial instrument suddenly rises enormously, a correction follows. Certainly Dogecoin, which is mainly seen as a joke among cryptocurrency, is subject to volatility. But it’s fun while it lasts. And it is certainly good news for anyone who still owned Dogecoin after previous declines.
The price has not yet fully recovered. Dogecoin is at the level of a few weeks ago. In May of this year, an all-time high of 0.64 cents was reached. That course is still a long way off. At the moment the value is about 0.20 dollar cents.
