As Bitcoin and Ethereum Crash, Elon Musk Scores Drastic Dogecoin Plan for ‘Big Idea’
Bitcoin, Ethereum, and most major cryptocurrencies have fallen sharply over the past week as the crypto market roller coaster continues.
The price of bitcoin has fallen nearly 10% since last weekend despite rallying earlier this week amid a slew of positive bitcoin and crypto headlines emanating from the annual consensus conference. Ethereum, the second largest cryptocurrency after bitcoin, lost 50% of its value in two weeks after hitting an all-time high in mid-May.
Now, as Bitcoin and Ethereum expand their losses, Tesla
“A hot tub heated by dogecoin mining,” Blockfolio, a bitcoin and crypto trading app said via Twitter. “Elon Musk, I don’t care how, just do it.”
“Great idea”, Musk replied, almost immediately raising the price of dogecoin from 28 cents. Dogecoin, a cryptocurrency rival based on bitcoin memes that was originally created as a ‘joke’, has jumped this year as investors buy the digital tokens in the hope that they will continue to take value.
While the suggestion that the heat generated by the creation of dogecoin tokens could be exploited may seem frivolous, it is an issue that has preoccupied the bitcoin and cryptocurrency community in recent months.
Musk caused chaos in the bitcoin and cryptocurrency markets with his critique of bitcoin’s huge power consumption – drawing Tesla’s support for bitcoin payments until the issue was resolved and called the North America Bitcoin Mining Council’s plan to promote the use of renewable energy from “promising.”
The bitcoin network currently uses more electricity than the entire country of the Netherlands, according to the Cambridge Bitcoin Electricity Consumption Index, with bitcoin’s carbon footprint skyrocketing with its price this year. The energy is used by computers around the world that secure the Bitcoin network and process transactions as a reward for freshly minted Bitcoin tokens.
Musk – whose April 1 announcement he planned to put a “literal dogecoin on the literal moon” was widely dismissed as an April Fool’s joke before it was revealed that his rocket company SpaceX was planning to do exactly that – has been one of the biggest drivers of the price of dogecoin in recent months.
Tesla’s CEO has repeatedly posted dogecoin memes and mentions on his favorite social network, Twitter, helping to make dogecoin the fifth most valuable cryptocurrency after Bitcoin, Ethereum, Binance BNB and cardano.
In 2019, Musk enthusiastically embraced the honorary title of CEO of dogecoin following a Twitter poll and has repeatedly named the dog-based cryptocurrency Shiba Inu as his “favorite” digital token in recent years. years.
Although he said all of his dogecoin-related comments shouldn’t be taken seriously in February, Musk seems to be increasingly supporting dogecoin as a serious crypto contender, calling on developers to submit ideas for dogecoin upgrades and improvements via Reddit and GitHub.
“[Dogecoin] has dogs and memes, while the rest don’t, ”Musk recently told a Twitter user who asked why he supported him over Bitcoin, Ethereum and the like.
“I haven’t sold any and I won’t sell any [dogecoin], “Musk tweeted last week in response to an influencer investor claim that Musk” has a big doge. “