Elon Musk and Dogecoin have a history linked to them. But before getting into it, let us first understand what is a Dogecoin and how exactly did it come into existence.
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What is Dogecoin?
Dogecoin was first launched in the year 2013. This was first developed as a meme coin or a joke coin. It is a peer-to-peer digital currency model and allows it to reach larger demography than bitcoin. Dogecoin was created as a revamped or better version of Bitcoins. The technology adopted in Dogecoin allows for better and faster transactions as compared to bitcoin. Use Bitcoin Circuit if you want to invest in dogecoin.
Launched in 2013, Dogecoin went on to become an instant hit within 02 weeks. Online communities, dedicated forums discussing dogecoin, and blogs running stories about this coin. Within 02 weeks of its launch, Dogecoin hit a market capitalization of approx. $8 million. As of December 2021, Dogecoin has a total market capitalization of $85million. The community is growing strong and is termed as the next big face in the crypto industry. The Scrypt algorithm used in Dogecoin allows for easy transactions as compared to bitcoins.
Dogecoin also utilizes the decentralized finance model. This means there are no middlemen, brokerages, or any other banks involved in your transaction. There are smart contracts and blockchain methods involved in every transaction.
What can you buy using Dogecoin?
It is indeed true that Dogecoin has a large user base across the globe. Many crypto exchanges have listed Doge in their exchange and allow for trading of the same. There is the physical or tangible model of Doge exchange. Popular platforms like Twitter and Reddit allow users to trade cryptos amongst their communities. In the past 05 years, dogecoin is also used for property exchange. Yet another popular usage of Doge comes in online tipping. Users on the net are rewarded with dogecoins for valuable information or insight shared.
Dogecoin and its connection with Tesla and Elon Musk
The price of Dogecoin skyrocketed in 2021 when Elon Musk came in support of this crypto. He referred to this crypto as people’s crypto. In early December 2021, Musk also declared his decision to use Dogecoin as a legal medium of exchange. Buyers can pick popular Tesla merchandise in exchange for Dogecoins. This remark by the CEO himself has created a stir in the crypto market. The prices of Dogecoins surged by 20% after this tweet by Elon. Tesla’s website was revamped to include a dogecoin payment option as well. Many crypto investors and influencers came out in support of this decision by the Tesla team.
Key takeaways of this decision
- Tesla accepts Dogecoin as an official payment model
- Few items like belt buckle and whistle are available for exchange
- Number of conditions to be read and understood before picking the merchandise
Limited purchase option
To start with, Tesla is now allowing only limited options for buying and selling. Buyers can pick belt buckles or whistles from the Tesla site in exchange for dogecoin. Tesla’s belt buckle developed to celebrate their factory in Texas is listed for 835 doges. This is equal to USD 164. The whistle-shaped cyber track is listed for 300 doges and is equal to USD 59.
No refund and no cancellation
Yes, you heard it right. While Tesla’s move is appreciated. Some several terms and conditions come along with it. One notable point is the no cancellation and no refund policy. Both the above products picked using dogecoin are not available for cancellation or exchange. Users will also need to have a dogecoin wallet to complete the payment. In case your order is overpaid, then there is no option for Tesla to refund the extra amount. Also, there is no room for the cancellation of your order. In a traditional online payment scheme, the amount received from each buyer is stored in a central repository. Any refunds are paid back to buyers within 30 days. But this concept is ruled out while making purchases through dogecoins.
The organization has also clarified that it may take up to 06 hours to confirm payment receipt.
This is not the first time that Tesla is coming out in support of cryptocurrencies. Earlier, Elon had accepted Bitcoins to enable purchases. Elon withdrew the decision considering the environmental hazards and energy utilized for mining.
