Price fireworks after the downturn: Praise from Musk inspires Dogecoin again

Course fireworks after the descent
Praise from Musk inspires Dogecoin again

The statements by Tesla boss Musk about crypto currencies cause price fluctuations at regular intervals. Depending on whether he finds words of praise or expresses himself critically – a reaction seems inevitable. A new tweet from Musk is now raising the price of Dogecoin by 30 percent.

With a tweet Elon Musk gave Dogecoin wings again. The little-known cryptocurrency rose in price by almost 30 percent to $ 0.5456. This adds up to almost 12,000 percent since the beginning of the year. Bitcoin and Ethereum, on the other hand, only come to 76 and 455 percent, respectively. With a total of almost 69 billion dollars, Dogecoin is the fourth largest crypto currency in terms of market value.

On Twitter, Tesla boss Musk praised the efficiency of Dogecoin transactions and described the digital currency as promising. It is unclear whether he meant energy consumption, user-friendliness or the potential as a means of payment, said Mark Humphery-Jenner, professor of finance at the University of New South Wales.

Musk recently suspended the acceptance of Bitcoin as a means of payment for the purchase of Tesla electric cars and triggered a drop in the price of cryptocurrencies. He cited the high energy requirements for the encryption and validation of the transactions as the reason. According to the industry service TRG, a Bitcoin business needs 707 kilowatt hours of electricity. With Dogecoin it is only 0.12 kilowatt hours.

Musk has repeatedly expressed both praise and criticism of Dogecoin in the past and caused price fluctuations. Last week, his appearance as a guest presenter on the legendary US comedy show “Saturday Night Live” sent the price of the cryptocurrency Dogecoin downhill.

When asked “What is Dogecoin?” Musk initially replied, “It is the future of currency. It is an unstoppable financial vehicle that will conquer the world.” When a cast member on the show, Michael Che, asked, “So, it’s a hustle?”, Musk replied, “Yeah, it’s a hustle.” And then laughed. That was enough to drop the price of the crypto currency sharply. It was now trading at just $ 0.47 on the Binance crypto exchange, a 28 percent decrease from the level it had before the broadcast.