Tesla accepts payments in Dogecoins. Cryptocurrency is up

The price of cryptocurrencies is falling because it is weakening Bitcoin and with it the valuations of all other tokens melting? Not all of them. Dogecoin fired after Tesla actually started accepting deposits in this cryptocurrency. And this despite the fact that digital money cannot buy cars at all.

Recall: Elon Musk, the owner of Tesla, was the first president of such a large company decided that will accept cryptocurrency payments. It was supposed to be real bitcoin era. The cryptocurrency exchange rate was rising, and subsequent investors began to see in BTC not only a speculative opportunity to earn big and fast money, but slowly changing into "digital gold". More and more institutions have started depositing their surpluses in it, treating the cryptocurrency as a store of value, a hedge against inflation and a capital investment that will be a solid lifeline when fiat currencies are too inflationary.

However, this project was quickly withdrawn, despite Tesla having purchased a sizeable packet of Bitcoins. After a while, it was announced that this was not a final abandonment of the topic, but - as is usual in such cases - the distaste remained. Of course, it also had an impact on the valuation of BTC, the rate of which fell significantly.

Bitcoin is dead, long live Doge

In December 2021, however, it turned out that Elon Musk was not completely "offended" by cryptocurrencies. This time, he announced that Tesla will sell accessories and advertising products for Dogecoin. Though perhaps the word "announced" is not quite precise here. There was no press release prepared by a host of specialists, nor a press conference at which the director of the marketing department shows the charts ... Elon Musk in his habit simply wrote a short message on Twitter. And a storm broke out.  

It only took a few minutes for the valuation of the "meme" cryptocurrency to increase by 20%. And it did not matter that in the tweet Musk emphasized that this is a test and DOGE cannot be used to buy cars, but only to pay for smaller transactions with them. "We'll see how it works," admitted the eccentric billionaire, without stating when the test would be implemented. 

Now we know that it works, and investors have looked at Dogecoin with a more pleasing eye again. The last week is a 21,87% increase in the price of this cryptocurrency, and if someone bought it before 12 months, selling it on January 14, 2022, he would earn 2104,3%. 

A gigantic increase in the Dogecoin price

In December 2020, Dogecoin could be purchased for $ 0,004. And there weren't too many people willing to make such an investment. On February 1, 2021 - after the first wave of interest in this cryptocurrency, which was originally meant to be just a joke - the price increased by 1400% to $ 0,06. A lot? It was just the beginning, after all Elon Musk's tweets and his interest in the cryptocurrency market, May 8, 2021 DOGE was valued at a record-breaking price of USD 0,80, i.e. the price increased by 19900% in six months. 

To better visualize it, it is enough to do a short calculation. By investing PLN 2020 (say: one hundred) in DOGE at the end of 100, we would have PLN 20.000 (say: twenty thousand) after less than six months. So it was enough to buy a cryptocurrency for 5. PLN to invest a million. 100 thousand PLN could be converted into PLN 200 million. 

As of January 14, 2022, DOGE is valued at $ 0,18, but the entire cryptocurrency market is in a deeper correction, and there are many indications that the interest in this token will be fueled more than once. It is clear that it is in the interest of those who are not used to wasting money.