Elon Musk boosts Dogecoin price, again

Summary

  • Elon Musk has once again boosted the price of the meme currency – Dogecoin, tweeting that his son is “holding his doge like a champ.”
  • The memecoin price moved up 10% on 19 July, reaching US$0.1814. The crypto was up nearly 6000% compared to last year.
  • Dogecoin is what is known as a meme currency, having started as a joke in 2013 to satirize other cryptos, in particular Bitcoin, the world’s largest cryptocurrency.

Tesla billionaire, Elon Musk, has once again boosted the price of the meme cryptocurrency, Dogecoin, tweeting that his son is “holding his doge like a champ.”

Musk’s son, whose name is  X Æ A-12,  was previously bought Dogecoin by Musk himself, although the exact amount is unknown.

The tweet from Musk boosted Dogecoin’s price from US$0.17 to US$0.18 on 19 July. The crypto sits at US$0.175 at present.

Dogecoin price moved up 10% yesterday (Source: © Jirkaejc | Megapixl.com)

Musk’s tweet is just the latest in a line of tweets this year, which has seen the price of the satirical digital currency skyrocket as a result.

On 19 July, Dogecoin reached a price of US$0.1814 and was up almost 6000% on this time last year. Although, the price was around 75% lower than its April peak of US$0.72.

Elon Musk (Source: © Hutchinsphoto | Megapixl.com)

What is Dogecoin?

Dogecoin is what’s known as a  meme currency, having started as a joke in 2013 to satirize other cryptos, in particular Bitcoin, which is the world’s largest cryptocurrency.

Its mascot is the Japanese dog breed – the Shiba Inu – which has earned the coin a somewhat ‘ironic’ following, including rapper Snoop Dogg, Dallas Mavericks owner, Mark Cuban, and most famously Tesla and SpaceX Chief Executives, Elon Musk.

Advantages of Dogecoin

Typically, Dogecoin’s price has risen on the back of celebrities, such as Musk, publicly touting the coin via Twitter.

Earlier this year, Dogecoin’s price was given a substantial boost when Musk revealed that his electric vehicle company, Tesla, had purchased US$1.5 billion worth of Bitcoin along with the decision by Tesla to accept Bitcoin as payment for their vehicles.

Furthermore, Musk announced in May that his space company SpaceX would literally put a Dogecoin on the moon – an announcement which further saw the price of Dogecoin climb.

Dogecoin has also risen on the back of cryptocurrency, moving more into the mainstream as the digital currency exchange, Coinbase, went public on the Nasdaq in April this year.

GOOD READ: Coinbase Valuation Tops US$100 Billion on IPO Debut

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Problems for Dogecoin

However, the price rises Dogecoin has experienced due to Musk’s public musings has proved to be a double-edged sword, with a fated Saturday Night Live appearance in May in which Musk quipped that Dogecoin was a “hustle” resulting in a dive in its price.

The price woes continued for Dogecoin when Musk decided that Tesla would cease accepting Bitcoin as payment for their products due to the revelation of Bitcoin mining’s harmful impact on the environment.

Musk has since hinted at a possible replacement of Bitcoin as payment for Tesla mobiles, leading to speculation that Dogecoin could possibly be that replacement since its mining is not nearly as energy-consuming as Bitcoin.

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