Why Does Elon Musk Support Dogecoin?

Bob Coiney

January 26, 2022

Controversial billionaire and CEO of Tesla, Elon Musk, has caused Dogecoin’s price to surge following a recent tweet. Musk urged fast-food giant McDonald’s to accept Doge as a payment method. In return, the billionaire promised to eat a kids’ meal on live television. 

Musk tweeted, “I will eat a happy meal on tv if @McDonalds accepts Dogecoin.” His tweet immediately affected the meme coin as it surged a whopping 8%  to $0.1445, based on data from CoinMarketCap. Dogecoin is valued as the 10th most valuable cryptocurrency and is worth about $18 billion. However, recent weeks have not been so green for it, but thanks to Musk, it’s witnessing a resurrection.

Musk’s tweet was inspired by a tweet from McDonald’s, which was a pointer to their interest in the crypto space.  The fast-food giant wrote on its Twitter, how are you doing people who run crypto Twitter accounts.” The tweet came amidst a Monday sharp sell-off in the crypto market. 

During instances of downward volatility, the crypto community routinely jokes about flipping burgers at McDonald’s. As bitcoin fell below $40,000 over the weekend, El Salvador’s president, Nayib Bukele, tweeted a photoshopped image of himself in a McDonald’s uniform. All this spiked the fast-food restaurant’s interest in crypto.

Hoskinson and McDonald’s

The recent tweets captured the attention of 

Cardano founder Charles Hoskinson. Hoskinson said he was happy about McDonald’s tweet.  As a result, the official Twitter account of McDonald’s followed Charles Hoskinson. A relationship seems to be brewing. 

Why Doge?

The question on everyone’s lips is why has Musk chosen to share his affection with Dogecoin more than other cryptocurrencies. This would not be the first time the Tesla frontman has advocated a wider adoption for Doge. 

Musk isn’t just asking for Doge to be used as a means of payment; his car company Tesla accepts dogecoin as a form of payment for some of its products. Also, it temporarily accepted bitcoin as payment for some products last year, but Musk’s bias lies with Dogecoin.

Some time ago, the billionaire issued a call for developers to post ideas for dogecoin upgrades and improvements on Reddit and GitHub. Musk has consistently chosen the meme-based cryptocurrency as his favored digital asset in recent years, having eagerly accepted the honorary title of dogecoin CEO following a 2019 Twitter poll.

Several fans and crypto users quizzed the billionaire on why he supports Dogecoin; Musk responded on Twitter: “Lots of people I talked to on the production lines at Tesla or building rockets at SpaceX own Doge. They aren’t financial experts or Silicon Valley technologists. That’s why I decided to support Doge – it felt like the people’s crypto.”

Despite his advocacy for Dogecoin, Musk maintains that true financial value is obtained from delivering services to humans.