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Elon Musk efficiency tweet pushes Dogecoin prices up again

The tweets could be jokes, but the price changes are real.

SONOMA, CA - JUNE 26:  Josh Wise, driver of the #98 Dogecoin Chevrolet, practices for the NASCAR Sprint Cup Series Toyota/Save Mart 350 at Sonoma Raceway on June 26, 2015 in Sonoma, California.  (Photo by Rainier Ehrhardt/NASCAR via Getty Images)
Rainier Ehrhardt via Getty Images
Richard Lawler
Richard Lawler|@Rjcc|May 13, 2021 7:34 PM

Last weekend the price of Dogecoin (a meme-inspired cryptocurrency that was developed "in about two hours" in 2013) fell sharply after Elon Musk said on Saturday Night Live that cryptocurrency is a "hustle." Now, possibly confirming that statement, Musk has followed up his announcement that Tesla is "suspending" accepting payments in Bitcoin because of its inefficiency, by tweeting about "potentially promising" improvements in Dogecoin.

Naturally, his tweets have increased speculation that Dogecoin could have a future use and Coinbase reports its value shot up 18 percent, before falling again. The Tesla reveal indicated the company would look for more energy efficient options than the "insane" usage trend shown by Bitcoin, although Musk's apparent surprise at this widely known fact made the whole thing feel like a stunt. Like Bitcoin, Dogecoin relies on less efficient "proof of work" blockchain technology, and more efficient cryptocurrencies are already available, but that hasn't stopped speculators from chasing the dream of Tesla, SpaceX and Doge.

Elon Musk efficiency tweet pushes Dogecoin prices up again