On Friday, the price of Dogecoin jumped more than 15 percent before paring gains. This followed an announcement by Elon Musk that Tesla has started accepting the cryptocurrency as a means of payment for some of Tesla merchandise.
The simple tweet shared by the Tesla boss reads “Tesla merch buyable with Dogecoin”.
Last year, shortly before Tesla stopped accepting Bitcoin as a means of Payment for its electric vehicle, Elon Musk asked his Twitter fans and followers if they’d like Tesla to bring Dogecoin on board as a means of payment. Nothing was said, however, especially as the company stopped accepting Bitcoin as a means of payment for its products.
Following the announcement and according to data from CoinDesk, Dogecoin notched $0.20 around 01:19 ET before paring some of those gains and was up over 9 percent at $0.18 at 07:06 ET.
Elon Musk who is a self-titled Technoking and Dogefather is a huge advocate of cryptocurrencies, especially Bitcoin and Dogecoin which he hugely influenced last year.
Terms and conditions are, however, attached to the purchase of Tesla’s merchandise with Dogecoin. Potential buyers who intend to pay with Dogecoin will need to have a Dogecoin wallet that’ll enable transfer to Tesla, then according to the information seen on Tesla’s website, if “an order is overpaid in Dogecoin, the overpayment amount will not be refunded to the original form of payment”. The company also added that users may also have to wait for confirmation of their payments as it can take up to six hours for the Dogecoin network to confirm payment.
There are more conditions as the aforementioned are not all. The company also adds that orders paid for in Dogecoin cannot be cancelled or refunded. Tesla’s traditional system allows a 30-day window for products to be returned if they are purchased through “normal” payment methods.
Tesla stopped accepting Bitcoin out of environmental concerns. Unlike Bitcoin, Dogecoin doesn’t consume much energy and may be a better option if Tesla really wants to accept cryptocurrency as a means for payment of its electric vehicles.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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