Elon Musk Swore Allegiance To Dogecoin, The Price Of This Meme Virtual Currency Skyrocketed Again

Elon Musk announced that he has not and will not sell any Dogecoin coins he is holding. Earlier, Tesla and SpaceX's CEO posted on Twitter a photo of a laptop with a $1 bill sticker on it with the caption: "How many Dogecoins in the window." And when social media users take a closer look, this note has a picture of a Shiba Inu dog, the symbol of Dogecoin, in place of George Washington. Musk also said the coin was a gift from a longtime Tesla fan.

This is the second time this week that Elon Musk has publicly defended the cryptocurrency, after making an announcement on Twitter that Tesla will hold onto its Bitcoins as the market shows signs of a crash. He had previously faced criticism from social media users, with some claiming that he sold his Bitcoins when its price was at the top of the market. He responded by tweeting that the electric car company has a "Diamond Hand," referring to traders who hold stocks when prices fall with the goal of making long-term profits. The drop in cryptocurrency value over the past few days, which is said to have started after Elon Musk posted an announcement saying that Tesla is suspending the use of Bitcoin as payment for its electric vehicle orders, because of concerns about the environmental impact of Bitcoin mining.

Since then, however, he has repeatedly said that the company will keep its Bitcoins and will allow the use of the virtual currency to trade again when mining becomes more sustainable. The Cambridge Center for Alternative Finance has estimated that the Bitcoin industry's annual energy consumption is on par with that of a country the size of Malaysia. And most of the mining is located in regions of China, where electricity is produced cheaply by coal-fired power plants. Tesla bought $1.5 billion worth of Bitcoin at the end of 2020 when the price per coin was below $20,000 and sold 10% in early 2021, when the price hit $50,000, making a profit of $101 million.