Today Elon Musk posted a new tweet in apparent support of Dogecoin.
— Elon Musk (@elonmusk) December 2, 2021
Elon Musk: Dogecoin for DeFi
He did so in response to another tweet highlighting how the very high fees on Ethereum have made DeFi effectively inaccessible to small investors.
Musk’s response seems to suggest Dogecoin as an alternative solution, even though to date it is not possible to create smart contracts on the Dogecoin blockchain as complex as those required for DeFi platforms.
Moreover, as far as we know, there is no clear development on Dogecoin to date, unless someone supported by Musk is working on it.
Dogecoin is not only by no means an alternative to Ethereum for DeFi, but also does not seem likely to be in the future, as there are already very good alternatives.
The price of DOGE
In reality, however, in the minutes following Musk’s tweet, published while it was night-time in the US, there was a small reaction in the price of DOGE: +6.8%. In the following minutes, though, the price fell, bringing the gain to 3.5%.
Comparing the current price of DOGE with that of 24 hours ago, there has been a loss of 1.3%.
In the past, tweets like this could have triggered sudden jumps of 10% or more, so much so that it was largely thanks to Elon Musk that the price of Dogecoin went from $0.008 at the start of the year to a peak of $0.73 in May in early 2021.
Tesla will return to accepting Bitcoin
There is, however, another outstanding story involving Elon Musk and Bitcoin, namely the promise that Tesla would return to accepting payments in BTC if there was reasonable confirmation that more than 50% of its energy consumption came from clean sources.
Your move @ElonMusk 🤔 pic.twitter.com/1c0TtKg1Ow
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) December 1, 2021
Although there is no evidence of this yet, it is reasonable to assume that this threshold may have been crossed by now.
Therefore, there are those who are reminding Musk that, should confirmation arrive that the threshold has now been crossed, Tesla should reactivate BTC payments as promised.
The fact is that after the almost complete closure of mining in China, a significant part of the hashrate has moved to the US, where renewable energy sources are largely used.
On the other hand, some of the hashrate has moved to Kazakhstan, where it continues to use fossil fuels.
However, it cannot be ruled out that in the coming weeks, or months, a confirmation of this kind may arrive that could convince Musk to rehabilitate payments in Bitcoin for the purchase of Teslas.