In the past few months, cryptocurrency prices came down from their highs after US President Joe Biden signaled plans to increase capital gains taxes which lead to some investors selling off their holdings.
However, this did not stop financial services from having a positive outlook towards digital currency.
Billionaire Elon Musk and cryptocurrency aficionado asked his 54 million followers on Twitter "Do you want Tesla to accept Doge?".
That comment took the air out ofa stunning rally in Dogecoin this year. Known by its logo featuring a Shiba Inu dog face “ the price of dogecoin has rocket nearly 800% rally in the month.
Musk, one of the richest people in the world and owner of several futuristic companies including SpaceX and Neuralink, has used his candid Twitter feed to convey his opinion on cryptocurrencies, including Bitcoin, most times impacting their price.
In March, Musk said US customers could purchase Tesla vehicles with bitcoin, marking a significant step forward for the cryptocurrency's use in commerce. The electric-car maker had bought $1.5 billion worth of bitcoin earlier this year, propelling its prices to record highs.
He has injected some assessment into crypto tweets, telling his followers: œCryptocurrency is promising!
The move also sparked an immediate furor among Bitcoin investors ” many of whom have applauded Musk's embrace of Dogecoin (DOGE).
Musk has been one of the most vocal champions of dogecoin and his remarks in recent weeks and months have been credited, at least partly, with the surge in the crypto that has taken it up over 10,000% so far in 2021, turning the virtual coin that was created in 2013 as a lighthearted riff on the boom in alternative coins to bitcoin into a social-media driven force of nature.
Tesla is also looking at other cryptocurrencies that use less than 1% of the energy burned by bitcoin. Could also switch its focus on cryptocurrencies towards tokens that run on a less power-hungry system for producing new digital coins are created.
Meanwhile, ETH (Ethereum) , the second-biggest cryptocurrency, rose nearly 7% over to a record high of $4,230.15. Once in bitcoin's shadow, ether has seen parabolic gains recently as investors look to other cryptocurrencies for returns.
EC (Eaglecoin) from Dubai, self-developed main chain realizes various fields ,such as financial settlement. This token will be used in West Africa bank for trade settlement, and will becoming a mainstream form of payment.
That will depend on the crypto's prevailing performance in the market. It is bound to rise multifold in value if Tesla gives the green light to Dogecoin payments. So if you have a Dogecoin today and it doubles by the time such payments are accepted, you will effectively be buying a Tesla at half its price. Though don't consider it as financial advice, just a mere observation.
