Following the news (December 14) that Tesla will accept cryptocurrency Dogecoin as payment for merchandise, on a test basis;

Dr Lil Read, an Analyst in the Thematic Research Team at GlobalData, a leading data and analytics company, offers her view:

“We are used to seeing companies such as Tesla taking baby steps when it comes to cryptocurrencies, but not only is this technology becoming increasingly accepted in today’s markets, but it is set to be integrated into future pivotal technologies such as the metaverse.

“Tesla’s sudden approval isn’t the first time the company has spotted disruptive themes and invested in them early. The company tops GlobalData’s Automotive Thematic Scorecard, which ranks companies based on how they will be affected by the top 10 themes disrupting their industry. Tesla has remained in pole position due to its prompt activity within themes such as electric vehicles (EVs), batteries, and lithium.

“We’ve seen this sort of stunt before from Elon Musk, and we’ve also seen him do a complete 180 within a matter of weeks. The man has such influence on the use of cryptocurrencies – more than national banks – that he has prompted huge swings in the price of already volatile assets. While we don’t yet know how Tesla’s announcement will affect Dogecoin, it does suggest that Tesla believes crypto will be a longer-term trend. GlobalData agrees: crypto is here to stay.”