It is known that Elon Musk has a predilection for cryptocurrenciesIn 2021, his company Tesla made an incredible $1.500 billion investment in Bitcoin. Added to this, Musk appears to be an influential figure in BTC valuations. His constant tweets, opinions, and conferences allude to this cryptocurrency. In fact, the bitcoin price has fluctuated following Musk's tweets or statements. But, For some time now, he has also been investing in Ethereum, Solana and, in particular, Dogecoin..
It is assumed that Bitcoin is one of the cryptocurrencies that Elon Musk owns: it is the most important digital currency, with a very high price compared to other cryptocurrencies. On the other hand, Ethereum It's the second most relevant cryptocurrency, with a versatile blockchain on which other crypto projects are based. Other relevant digital currencies are Shiba Inu, Solana, as well as some tokens. However, Elon Musk has declared that his new favorite crypto is Dogecoin.
The Dogecoin cryptocurrency and its characteristics
This cryptocurrency is based on Bitcoin and has a dog as its image. While this crypto is based on the BTC system and technology, It maintains a marked difference with respect to Bitcoin, and that is that it is an inflationary cryptocurrency., that is, there is no emission limit. Bitcoin, on the other hand, has a limit of 21 million coins.
Another peculiarity of Dogecoin is that it is cheaper to generate and transact, especially from an energy point of view. For Mining BTC requires an electrical power of 707 kWh, whereas Dogecoin requires only 0,12 kWh.Dogecoin can be described as an eco-friendly cryptocurrency, gaining widespread popularity among environmental activists. It's also worth noting that its creation has a much lower impact and leaves a small carbon footprint.
Something that stands out is that Dogecoin emerges as "a joke", since it was initially a token created as a joke, not as something serious.Dogecoin was created by programmer Billy Markis, who had worked at IBM. The coin was issued in 2013, but as an irreverent token, featuring the image of a Shiba Inu dog. It could be said that this token was intended as a "memecoins”, but to its creator's surprise, its value quickly rose by 300%. Thus, the "joke" became something significant, and Dogecoin is currently struggling vigorously in the international cryptocurrency market.
BUY DOGEElon Musk and his praise for Dogecoin
The famous owner of the Tesla company has said that “Dogecoin is the people's cryptocurrency”. He also praised the way this cryptocurrency is generated, without harming the environment. To a certain extent, Elon Musk's stance makes sense: His company Tesla manufactures electric cars, whose greatest advantage is that they are non-polluting.. Therefore, Elon Musk favors technologies that are also environmentally friendly.
On the other hand, the billionaire maintains a constant interaction with the developers of this digital currencyThere are even rumors that there must be some kind of mutual aid pact between the Dogecoin people and Elon Musk. For example, in 2021, the Tesla CEO published several tweets where he spoke about the benefits of this cryptocurrency, while also promoting its use. The result? Well, the Dogecoin token price multiplied incredibly, reaching the highest levels of international cryptocurrencies.
Every so often, Elon Musk uses social media to explain the benefits of Dogecoin.. He has already stated that this is his favorite cryptocurrency, which is even accepted by its Tesla company as a form of payment, as well as to carry out a large number of transactions. But, it is also used in another of Musk's companies: the well-known SpaceXIn fact, it was Dogecoin that financed the DOGE-1 mission to the Moon, in which SpaceX participated.
Some considerations about the Dogecoin cryptocurrency
There are all kinds of opinions about this cryptocurrency: for and against. It is certainly an easier and cheaper token to mine. While it uses the same mining technology, Bitcoin blockchain, it turns out that its processes are much simpler. Therefore, transactions with Dogecoin are much faster. Furthermore, has no mining limit, so mining equipment never becomes obsolete. It is added that entails a much lower energy cost, implying a much less expensive investment in hardware.
However, there are reservations or outright criticisms of this cryptocurrency. First of all, it remains a “meme” token, whose value has not yet been established in the market. Its valuation is lower than Bitcoin, but with the same volatility. This leads to little confidence in its value. Owning a large amount of Dogecoins never means owning a fortune, but the price can also plummet. Added to this are the costs of maintaining the digital wallet.
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So far, Dogecoin's success remains underpinned by its “hype factor"It's kind of like gambling: basically people just keep "betting or believing in this currency", but it's not a given that it will be a winning investment. Therefore, users invest modestly, as is the case with any bet where you can win or lose. In this peculiar game, Elon Musk has been a driving force behind Dogecoin's confidence..
It goes without saying that Elon Musk seems to be giving Dogecoin an extra boost, as many Products from his companies Tesla and SpaceX are offered at discounts if paid for with Dogecoin.. In this way, we witness another episode related to the cryptocurrency battle in the 21st century, where the various digital currencies have tools and followers that allow them to gain public preference. This is the case with this duo of "Elon Musk + Dogecoin".
