After ditching Bitcoin, Elon Musk is now working on making Dogecoin efficient

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After ditching Bitcoin, Elon Musk is now working on making Dogecoin efficient
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  • Tesla CEO Elon Musk has now tweeted that he's currently working with the Dogecoin team to improve system transaction efficiency.
  • Dogecoin climbed up to 40% after Musk’s revelation
  • Unfortunately, Tesla announced it'll stop accepting Bitcoin as a method of payment due to environmental concerns.
Just a day after revealing that US-based electric car maker Tesla will no longer accept Bitcoin, its chief executive officer (CEO) Elon Musk has now tweeted that he's currently working with the Dogecoin team to improve system transaction efficiency. He also added that the cryptocurrency has potential and could lead the charts for much longer than we expect.

As soon as the tweet went online, Dogecoin's value on the exchange also started to climb. More than 40% growth was recorded on May 14, 12:30 PM India time, providing much-needed relief to investors amid profoundly high volatility.

The tweet plays a critical role for the Dogecoin community since it lost almost half its value in the last few days, following Musk's appearance on the American TV show Saturday Night Live. Fans expected the tech genius to back Dogecoin more, in turn, send its value flying. However, the reaction to the show was primarily adverse, sending the coin in a downward spiral.

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As other cryptocurrencies such as Ethereum began racing higher in February and March this year, Dogecoin also joined the rally. It managed to outdo other cryptos, thanks to the backing of Elon Musk, who has often tweeted about this crypto asset.

Musk seems to be changing sides, though. Tesla's acceptance of Bitcoin was a crucial moment in history, as publicly listed companies have largely distanced themselves from cryptocurrencies. Enthusiasts expected it to have a ripple effect that'll open and encourage the acceptance of crypto in day-to-day life.

Unfortunately, Tesla announced it'll stop accepting bitcoin as a method of payment due to environmental concerns. Musk has always been a fan of Dogecoin, and it seems his priorities are quickly changing. Though he did say that Tesla would not sell any of the Bitcoin owned by Tesla, currently, and would use it again "as soon as mining transitions to more sustainable energy."

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In the meantime, he said Tesla would look at other cryptocurrencies that use less energy to mine. Musk has reiterated that he's a firm believer in crypto, but that it can't thrive on fossil fuels.

Unlike Bitcoin, which has set 21 million as the finite amount of the digital currency, dogecoin has 129 billion coins in circulation and will continue to make new blocks of coins available to mine each year. It means that Dogecoin is highly inflationary, and the blockchain will continue rewarding miners by creating new coins every day.

The largest U.S. cryptocurrency exchange, Coinbase, plans to offer Dogecoin on its trading platform in six to eight weeks, the company's CEO announced.

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SEE ALSO:
Four reasons why cryptocurrency Ethereum has been on a bull run
Elon Musk realised that he can’t champion both renewable energy and Bitcoin at the same time — here’s why
Google fined $123 million by Italy’s antitrust watchdog for abusing its dominant position
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