On Thursday, the cryptocurrency market saw a broad recovery, and all major virtual coins are trading higher on Friday. Bitcoin is now again worth more than $40,000.
Musk, who recently sent shock waves to the bitcoin and cryptocurrency markets last week when he shut down Tesla bitcoin payments due to the company’s rising energy consumption, indirectly through a tweet once again extended his support to Dogecoin. He hinted towards an upgrade and assured the Doge fans that he will continue supporting the meme coin.
Musk asked on Twitter, “How much is that doge in the window?” alongside a picture of a Shiba Inu dog on a $1 bill, implying that the dogecoin price could more than double from its current 40 cents.
Musk later replied, “I haven’t and won’t sell any doge,” in response to another Twitter user who dubbed the Tesla and SpaceX CEO the “ultimate hodler,” a crypto culture term for someone who holds onto digital assets amid intense price volatility.
Following the broad bitcoin and crypto market sell-off this week, the posts sent dogecoin sharply higher, with the price up 20%.
Elon Musk not backing Bitcoin owing to environmental issues has crashed the market and sent the prices drastically down. Recently he responded to a tweet which claimed
bitcoin mining could allow solar and battery systems to economically scale to provide a larger share of grid energy.
The controversy over bitcoin’s massive energy use has raged for years, but it has recently been heightened by the cryptocurrency’s skyrocketing price, which has driven up the bitcoin network’s electricity demands. The Miners, who operate the machines that secure the bitcoin network, are compensated with bitcoin tokens in exchange for their computing power. According to Cambridge University’s Bitcoin Electricity Consumption index, the machines, which are distributed across the world and require both power and cooling, are expected to consume as much electricity as Sweden in 2020, consuming 131.8 TWh.