Dogecoin increased in price by more than 15%, forecasted to reach 1 USD

The price of Dogecoin increased by more than 15% on the trading day of January 14 after billionaire Elon Musk announced that he would accept customers using this virtual currency to buy some Tesla products.

Dogecoin rose more than 9% to $0.18 after billionaire Elon Musk announced that customers can use Dogecoin to buy some Tesla products. Photo: AFP

Use Dogecoin to buy souvenirs

On the morning of January 14, billionaire Elon Musk, CEO of electric car company Tesla, announced on Twitter that some products of Tesla electric car company can be paid for in Dogecoin. Following this announcement, Dogecoin rallied more than 9% to $0.18 at 07:06 Eastern time ET (North America), according to Coindesk data.

In essence, only a handful of Tesla items can be paid for with Dogecoin, the virtual currency originally created for “fun”. For example, a horn shaped like Tesla’s Cybertruck pickup model costs 300 Dogecoin (approximately $ 59) or a belt produced on the occasion of the establishment of the Gigafactory electric vehicle battery factory in Texas costs 835. Dogecoin (equivalent to 164 USD).

The plan to accept payments in Dogecoin has been considered by Tesla before. At the end of 2021, billionaire Elon Musk posted on Twitter that: “Tesla will make it possible for some goods to be purchased with Dogecoin and see how it goes.”

Along with the announcement of accepting payments in Dogecoin, Tesla also set some terms and conditions that go with it. Accordingly, customers need a Dogecoin wallet to transfer money to Tesla. In particular, “in the event of an overpayment of Dogecoin for an order, the overpayment will not be refunded according to the original form of payment,” Tesla announced on its website.

Tesla also notes that it can take up to 6 hours for customers to confirm a payment on the Dogecoin system. Any order paid with Dogecoin is non-cancellable or non-refundable. Normally, if customers buy Tesla products at official dealers and pay by traditional method, customers are allowed to return the product within 30 days of receiving the product.

This is not the first time Tesla has accepted cryptocurrency payments. Last year, Tesla bought $1.5 billion worth of Bitcoin at the time of the announcement. The company also announced that it will accept payments in Bitcoin. However, the Tesla boss later “changed his voice” and stopped accepting Bitcoin payments due to environmental concerns. The activity of “mining” Bitcoin with a plowing computer has been criticized for causing environmental pollution due to the large amount of electricity consumed.

Meanwhile, Dogecoin uses significantly less energy, according to technical analysis by TRG Datacenters. Billionaire Tesla announced that he will work with Dogecoin developers to improve transaction efficiency.

When will it hit the 1 USD mark?

Dogecoin launched in December 2013 as a virtual game currency that seemed to have no value. However, right after its launch, Dogecoin has become a popular trend, attracting a large number of users. Over the past few years, Dogecoin has become one of the most important virtual assets and the largest memecoin as of 2020.

In 2021, Dogecoin has done wonders with a price increase of more than 3,100% and this is the best year for this memecoin since its launch. Reviewing the ups and downs of 2021, Dogecoin traded at $0.005685 in the first days of the year. But in February, this coin jumped to $0.034 and continued to bounce back to $0.7376 in early May.

However, Dogecoin’s price swing trend did not last long. Over a month later, Dogecoin has “evaporated” most of its value. As of December 2021, this coin is trading around $0.18, losing more than 70% from the peak price set in May.

Dogecoin price is heavily influenced by Bitcoin and influencers (KOL). Billionaire Elon Musk and rap artist Snoop Dog are two of the KOLs that make Dogecoin swing in price. Their tweets caused Dogecoin to bounce unpredictably.

2021 also sees many companies and online platforms accepting payments in Dogecoin. At the beginning of the year, the American professional basketball club Dallas Mavericks approved buy ticket by Dogecoin. Billionaire Mark Cuban, owner of the Dallas Mavericks, tweeted that “Dogecoin is a currency that people use to transact”.

Similarly, American cinema chain AMC Entertainment has also announced plans to accept payments in Dogecoin.

With the year 2022, already There are many positive comments in the virtual currency community about Dogecoin, according to financial news site FX Empire. Cryptocurrency believers expect Dogecoin will be more widely adopted this year as more and more retailers and exchanges accept the coin.

Dogecoin’s growth space is expected to sustain through 2022, even as competitive pressure against some killer coins like Floki increases.

Even so, some experts still predict the price of Dogecoin to hit $1 by the middle of this year, while analysts expect Dogecoin to hit $1.5 in the next five years. According to technical indicators, Doge is trading below the average price of the past 200 days, so it is not too difficult for this coin to move in the long term.