Billionaire Elon Musk Has a New Idea That Could Make Dogecoin Investors Very Happy. But Will It Work?

Dogecoin (CRYPTO: DOGE), which was created arsenic a parody of Bitcoin (CRYPTO: BTC), reached its all-time precocious of $0.74 connected May 8, 2021 -- the aforesaid time Elon Musk, its astir salient backer, hosted Saturday Night Live. But arsenic of this writing, it trades astatine astir $0.08.

Dogecoin, similar galore different meme coins, fizzled retired arsenic rising involvement rates and different macro headwinds chilled the cryptocurrency market. Without a proviso limit, Dogecoin couldn't beryllium valued by its scarcity, arsenic Bitcoin is. Without autochthonal enactment for astute contracts, Dogecoin couldn't beryllium valued arsenic a blockchain-based developer ecosystem like Ethereum (CRYPTO: ETH). That's wherefore it struggled to retrieve adjacent arsenic Bitcoin and Ether bounced back.

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Yet Elon Musk, who named the Trump Administration's Department of Government Efficiency (DOGE) aft the meme coin, is inactive bullish connected its maturation potential. On June 1, the X idiosyncratic DogeDesigner posted that Musk erstwhile offered to devour a Happy Meal connected unrecorded TV if McDonald's (NYSE: MCD) accepted Dogecoin. Musk reposted the tweet and acknowledged it was "true". So could that really hap and respire caller beingness into this unloved cryptocurrency?

Mainstream vulnerability hasn't boosted Dogecoin's terms

A fistful of large companies already judge Dogecoin payments. Musk allows its Tesla and SpaceX customers to usage Dogecoin to bargain the companies' branded merchandise (but not Tesla's electrical cars oregon SpaceX's Starlink terminals).

Mark Cuban, different 1 of Dogecoin's aboriginal backers, allowed radical to bargain Dallas Mavericks tickets and merchandise with the meme coin. Amazon's Twitch, AMC Theaters, Microsoft, Newegg, LVMH's Tag Heuer, and AirBaltic besides judge Dogecoin payments for definite products and services.

But conscionable due to the fact that Dogecoin is an disposable outgo enactment doesn't mean astir consumers are really utilizing it. Like different cryptocurrencies, Dogecoin's volatility makes it overmuch little reliable than fiat currencies. Most consumers and businesses astir apt aren't anxious to bash concern with a token that has fluctuated betwixt $0.08 and $0.31 implicit the past 52 weeks.

So adjacent if McDonald's accepts Dogecoin payments arsenic a publicity stunt to get Elon Musk to devour a Happy Meal connected TV, it astir apt wouldn't determination the needle for the meme coin. That's astir apt wherefore Musk's repost of DogeDesigner's tweet -- which references a remark helium made successful 2022 -- didn't boost Dogecoin's terms arsenic overmuch arsenic immoderate of his ain tweets.