- Musk recently said he is working with Dogecoin developers to ‘improve system transaction efficiency’
- Dogecoin consumes 0.12-kilowatt hours of electricity per transaction compared with 707 for bitcoin
Cryptocurrency markets have been leaping and treading over Tesla Inc. chief Elon Musk ‘s tweets for months now.
Bitcoin recently suffered a huge dent in its rally after Musk stepped up his criticism of the currency as environmentally unsustainable.
He said in a tweet Thursday he worries about “massive use” of coal and other carbon-intensive energy to generate the electricity needed to mine digital currency.
Bitcoin is down about 13% this week and was last up 1.6% at $50,503. It has slumped over a fifth from its record of just under $65,000 hit last month.
However, on the other hand, he signalled his support for Dogecoin.
In another tweet, he said he is working with Dogecoin developers to “improve system transaction efficiency.”
Following this, the currency leapt from 43 cents to over 50 cents apiece.
Musk was recently questioned regarding this changed course by a Twitter user.
In an exchange, the user asked why is the Tesla CEO not creating his own cryptocurrency that matches all his requirements.
“Why not just make a crypto from scratch that does everything you want technically and has a lot of dev support and doesn’t have high concentration of ownership at least initially? (sic)” Musk was asked.
Why not just make a crypto from scratch that does everything you want technically and has a lot of dev support and doesn’t have high concentration of ownership at least initially?
— Long Elon (@long_elon) May 16, 2021
To this, he replied: “Only if Doge can’t do it. Big pain in the neck to create another one.”
This means that Musk is currently pinning all his hopes on the currency which was originally created as a joke between two engineers.
Dogecoin consumes 0.12-kilowatt hours of electricity per transaction compared with 707 for bitcoin, according to data centre provider TRG.
The token, whose logo features a Shiba Inu dog, has surged this year to become the fourth-largest cryptocurrency with a total value of $68 billion, according to CoinMarketCap.
Few major companies accept Dogecoin for payment, and its supply is unlimited.