Tesla CEO Elon Musk stated on Twitter that the company would begin taking Dogecoin as payment for merchandise. Some of Tesla’s merchandise, such the $150 Giga Texas belt buckle with the carmaker’s emblem, will be available for purchase using the digital token, according to the company’s CEO on Tuesday. The tech mogul has long been a supporter of the meme-based cryptocurrency, and he has personally invested in it. In May, he asked his Twitter followers if Tesla should accept dogecoin payments, and more than three-quarters said yes.
Earlier this week, Musk stated that dogecoin was a superior payment option than bitcoin since it could manage larger transaction volumes and did not have a limited supply.
“Even though it was created as a ridiculous joke, dogecoin is really better suited for transactions,” he told Time magazine on Monday, after being chosen Person of the Year 2021. “It’s slightly inflationary… but that’s a good thing because it encourages people to spend rather than keep it as a store of wealth.”
He referred to dogecoin, a meme-inspired cryptocurrency, as a “hustle” during a guest appearance on the comedy sketch TV show, Saturday Night Live, in May, sending its prices plummeting. Although Musk is undeniably bullish on cryptocurrencies, he is skeptical that it will replace traditional currency. “I’m not a huge hater of fiat cash like many others in the crypto space are,” Musk told Time.
However, according to him, crypto has benefits over fiat currency in that the latter is diluted by whichever government it is issued by. It ends up being a devastating tax on individuals, particularly those with cash holdings, because it dilutes the money supply.