Dogecoin, a cryptocurrency that is already among the top 10 most profitable tokens of crypto trade, was surrounded by many backlashes after SpaceX CEO Elon Musk decided to share posts on his Twitter feed about the ever-increasing energy consumption. However, the cryptocurrency has done well, with per token prices increasing close to 300% since the start of 2021. Dogecoin is a cryptocurrency based on the ethereum platform and has surged in price after Elon showed his support to the new-age cryptocurrencies emerging daily. He even said these digital currencies might even be the finances of the future. All this led to a growth in prices and increased demand. Dogecoin, which was created as a joke once, has become one of the most popular cryptocurrencies in the market.
The sudden rise in per token prices of this cryptocurrency captured a lot of attention from large-scale investors, market specialists, and traders. Elon Musk, a crypto trader himself, is known to influence the market trends with his tweets supporting various forms of cryptocurrencies, his current favorite being Dogecoin. Since he showed his interest in this lesser-known cryptocurrency, the prices have gone up significantly. This month, seeing the rise in market values of cryptocurrencies, Elon announced that Tesla might consider accepting bitcoins and other cryptocurrencies as a mode of payment for their cars. The hype was enough to cause a major spike in the prices of cryptocurrencies.
As trade prices went up and demand for crypto tokens increased, reports on an all-time high in energy consumption due to increased cryptocurrency mining started to surface, which included utilizing many fossil fuels within various processes involved in keeping the crypto mines up and running. Therefore, the increased prices and demand for crypto were short-lived. Recently, Musk announced that Tesla would not be accepting cryptocurrencies as a mode of payment for their cars until the time miners and traders find energy-efficient and alternate ways to generate energy. China has the majority of crypto miners, and they extensively make use of lignite, a type of coal, to keep mining processes running smoothly. This leads to a lot of carbon footprint, which brought the issue to light. Among the backlash on energy consumption due to the mining of cryptocurrencies, when Tesla CEO tweeted his concerns with increased carbon emissions and energy consumption Marcus, a Dogecoin co-creator, reported that environmental concerns never crossed his mind while creating the cryptocurrency. As it was implied to be a joke on the crypto trade market, he never spent this much time thinking about market situations or environmental impacts due to the increased carbon footprint.