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Elon Musk continues to support Dogecoin even amid the cryptocurrency crisis

By on August 11, 2022 0

This means that risky investments like cryptocurrencies have lost their luster, which is evident in the drastic price drops we have seen for the cryptocurrency market as a whole. Since their record valuations of three trillion dollars, crypto markets have fallen to less than a third in less than a year, and the poster boy for cryptocurrencies, Bitcoin, has lost devotees like Elon Musk.

Tesla’s rendezvous with Bitcoin

In early 2021, Musk’s company Tesla invested $1.5 billion in Bitcoin and a month later also began accepting altcoin as payment for its electric vehicles. It was only after the public backlash over environmental concerns about the use of Bitcoin that Tesla reversed its decision. However, he kept his bitcoin holdings while continuing to accept cryptocurrency for goods payments.

After the cryptocurrency crisis and accompanying economic uncertainty, the company liquidated nearly all of its Bitcoin holdings last month, Forbes said in its report. However, Musk continues to believe in Dogecoin, a cryptocurrency he has backed many times in the past.

Why Elon Musk loves Dogecoin?

In an interview with the Full Send Podcast, Musk revealed that he likes Dogecoin because the cryptocurrency doesn’t take itself too seriously. Instead, he has “memes and dogs” and “a sense of humor.”

Musk believes that “memecoin”, as originally designed, has better “total transactional throughput capacity” compared to Bitcoin. This is why Musk, who previously backed Dogecoin, plans to continue buying rival Bitcoin in the future as well and will continue to support it publicly.