If we were to nominate the most active and influential KOL in the recent crypto market, Tesla CEO Elon Musk would undoubtedly top the list. His "tweet-to-trade" effect has repeatedly proven impactful, forcing investors to closely monitor his updates.
Musk's Crypto Influence: A Timeline
- February 8, 2021: Tesla announced a $1.5 billion Bitcoin purchase, triggering a 15.22% price surge.
- March 24: Tesla began accepting Bitcoin payments, boosting prices by 6.5%.
- May 13: Musk tweeted that Tesla suspended Bitcoin payments due to environmental concerns, leading to a 10% price correction.
Tesla’s Q1 earnings revealed a $272 million profit from selling 10% of its Bitcoin holdings, netting over $100 million in short-term gains. Musk cited Bitcoin’s "high fossil fuel consumption, especially coal" as the reason for halting payments—a topic explored in detail here.
Today, we delve deeper into Musk’s "green" asset hunt.
Is Dogecoin the Answer?
Dogecoin has emerged as the prime candidate, thanks to Musk’s relentless promotion. In 2021 alone, DOGE surged 16,000%, from $0.00456 to $0.74 (per OKX data).
👉 Why Dogecoin’s community power matters
Musk’s May 11 Twitter poll showed 78.2% of voters supported DOGE payments for Tesla. Two days later, he tweeted about collaborating with Dogecoin developers to "improve transaction efficiency," reaffirming his eco-friendly crypto stance.
Dogecoin vs. Bitcoin: Energy Comparison
Both use Proof-of-Work (PoW), but key differences exist:
- Bitcoin (SHA-256): ~700 kWh per transaction.
- Dogecoin (Scrypt): ~0.12 kWh per transaction—0.017% of Bitcoin’s energy use.
This aligns with Musk’s demand for "under 1% of Bitcoin’s energy per transaction."
Dogecoin’s User Base
With 62.68 million addresses, DOGE trails only BTC, BCH, and ETH in adoption. Its Reddit community (1.84M members) reflects strong grassroots support, amplified by Musk’s endorsements.
Other Eco-Friendly Contenders
- Ethereum: Transitioning to PoS with ETH 2.0 could cut energy use by 99% (to ~0.89% of Bitcoin’s).
- XRP: At 0.0079 kWh/tx, it’s ultra-low-energy but faces SEC lawsuits and centralization critiques.
FAQs
Q: Why did Musk really suspend Bitcoin payments?
A: Officially, environmental concerns. Critics speculate profit-taking or promoting Dogecoin.
Q: Is Dogecoin truly scalable?
A: Its 40K daily transactions lag behind ETH (1.2M) or XRP (1.5M). Upgrades are crucial.
Q: What’s the safest "green" crypto investment?
A: Diversify. ETH 2.0 and established PoS coins (e.g., ADA) balance eco-friendliness and utility.
Final Thoughts
Musk’s "green" pivot sparks debate—is it environmentalism or opportunism? With Tesla still holding Bitcoin, skepticism persists.
For investors:
- Research before following hype.
- Monitor PoS advancements and regulatory shifts.
- Diversify beyond meme coins.
👉 Explore eco-friendly crypto strategies
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