Elon Musk tweets in support for Dogecoin again; firm's stock price rises by 8%

Dogecoin and cryptocurrency value surge after Elon Musk exhibits support for cryptocurrency on Twitter. Cryptocurrency Dogecoin has gained an 8% boost after the tech tycoon took Twitter to explain the importance of virtual currency. Musk's comment came as a response to a tweet by Dogecoin investor, Matte Wallace on July 9. The Tesla CEO had also engaged in several other cryptocurrency-related tweets by Pranay Pathole and Tesla in the Gong.

Dogecoin enthusiast, Wallace on Twitter updated the community that Dogecoin is "perfectly" to become one of the most used currencies in the world. To which Musk responded as a warning, Bitcoin and Ethereum are "pursuing multilayer transaction system." He also explained concepts of base later transactions and its impact on the transaction cost and speed. He added that the "merit imo to Doge is for maximizing base layer transaction rate and minimizing transaction cost with exchanges acting as the de facto secondary layer."

The Tweet was converted into a series when the Twitter user and crypto admirer Pranay Pathole underlined that Dogecoin was already 15 times faster than Bitcoin. To which the business magnate, Musk responded with an explanation that a steady increase of block size and frequency should match the available bandwidth in order to maintain a healthy balance.

Another Dogecoin enthusiast, Tesla in the Gong quickly asked Musk to shed light on the “sweet spot” for the number of transactions per second. The Twitter handle also wondered if it should reach the “speed of Visa” to be useful. Musk smoothly explained that Dogecoin “won’t need to reach visa speed," since the regulated exchanges will 'act as de facto second layer.” Moreover, he also elucidated the impact of transaction base and transaction cost. 

Dogecoin gains 8% on Friday

According to studies by financial experts, the cryptocurrency was suffering a bear phase after crypto scammers impersonated Elon Musk. According to an eminent analysis firm, Dogecoin trading dip by 10% on July 8, Thursday. However, the price shot up by a whopping 8% after Tesla CEO, Elon Musk’s tweets. On July 10, as of 1:55 pm IST, Dogecoin was trading at Rs. 16.17, up 94 paise from Rs 15.16 when it closed last.

(Input: Twitter)