When the "Silicon Valley Iron Man" Musk's name collides with cryptocurrency, the market is always like a lake surface hit by a giant stone — but this time, his actions regarding Dogecoin DOGE are like a precise scalpel, cutting through this ecosystem bonded by meme faith, revealing a bloody and messy split: miners are anxiously holding their scorching mining machines, retail investors are arguing fiercely in the community, and the once 'To the Moon' DOGE is now standing on the edge of a cliff between "practical transformation" and "deviation from the original intention." The storm that Musk has stirred is rewriting DOGE's survival script.

From a single comment that boosted prices to deep binding: Musk's king-size operation.

In the past, Musk could send DOGE's price skyrocketing with just a casual comment like "Dogecoin is good" on social media. But this time, he played a "hardcore operation," directly putting a knife to DOGE's core ecosystem.


According to internal Tesla news and blockchain industry leaks, Musk has revealed two "trump cards": one is that some Tesla supercharging stations have quietly started DOGE payment testing, and they have stated they will "speed up DOGE" so that it can withstand the pressure of high-frequency payments; the second is that SpaceX has shaken hands with the DOGE core development team, intending to put DOGE into the "little money cabinet of the space supply chain," starting with cross-border small payments for satellite parts procurement.

These two moves directly shattered DOGE's label as a "pure speculative toy." Prior to this, DOGE squeezed into the top ten of the cryptocurrency market capitalization relying on Musk's "word-of-mouth endorsement," but it always remained a "pretty but useless" vase — transactions were as slow as snails, with fluctuating transaction fees, firmly wearing the "meme coin" hat.

But now, the binding with Tesla and SpaceX not only labels DOGE with "practical value" but also pushes it towards the path of "payment currency."

Market data strongly confirms this: 48 hours after the news was released, the number of DOGE on-chain transactions skyrocketed by 320%; among them, the proportion of "small payment transactions" was even more exaggerated, jumping from less than 5% to 28%, setting a new historical high. The dream that could only be shouted in forums of "can be spent as money" seems to have truly dawned.

Miners vs Retail Investors: A Tearful Battle for Interests and a Debate on Beliefs

Musk's actions exploded like a bomb in the DOGE community. The divide between miners and retail investors instantaneously escalated, with major cryptocurrency forums and communities turning into battlegrounds without gunpowder, playing out daily "insult battles."

Miners: Computing power diluted, mining machines become "scrap metal"? Collective table flipping in opposition.

For DOGE miners, Musk's call for "payment transformation" is simply a "death knell."

DOGE uses the Scrypt algorithm, and miners rely on "block rewards + transaction fees" to earn money. However, Tesla and SpaceX's demand for "transaction speed optimization" essentially means shortening DOGE's block confirmation time — currently, it takes 1 minute to generate a block. To adapt to high-frequency payments, this needs to be compressed to 10-15 seconds. What does this mean? The efficiency of miners' computing power output will be "diluted," and profits will visibly shrink.


What makes miners even more anxious is that Tesla plans to build a "DOGE exclusive node cluster" to ensure stable payments, relying on centralized nodes to enhance transaction processing speed. This strikes at the miners' "computing power monopoly" anxiety. A head of a leading DOGE mining farm expressed frustration on social media: "Once Musk's node cluster is set up, over 70% of the transaction verification rights will be snatched away! Ordinary miners' transaction fee earnings could drop by at least 50%, and the money we invested in mining machines could go down the drain!"



Data doesn’t lie: after the news broke, DOGE's computing power immediately fluctuated wildly like a light bulb that lost power. Many small and medium-sized mining farms directly shut down, with the overall network computing power dropping 18% within 24 hours; the second-hand mining machine market was even worse, with prices halved and no one wanted them, turning overnight from hot cakes into hot potatoes.

Retail investors: Believers cheer for their dreams coming true, while speculators wail about their financial lifelines being cut.

The division within the retail investor community is even more lively, it's like half fire and half seawater.


The believers among retail investors are cheering like it's New Year's, feeling that Musk has fulfilled DOGE's original dream. Many early holders say that when they chose DOGE, it was because they believed in its decentralization and its connection to ordinary people. Now, collaborating with Tesla and SpaceX has finally transformed DOGE from a "joke coin" into "real money that can be spent." A DOGE community admin gleamed with excitement in an interview: "We've been waiting for this day for 5 years! DOGE no longer needs to rely on Musk's words to dance; it has its own value backing — this is the meaning of long-term holding!"

But speculative retail investors are panicking. Most of these people rushed in during DOGE's surge in 2023, with their minds filled with thoughts of "quick in and out to make big money." Although Musk's push for "payment transformation" caused DOGE's price to surge 45% in the short term, it also means that "opportunities for sudden wealth" may decrease — the price of practical cryptocurrencies will depend on the "progress of application implementation," no longer relying on "market sentiment speculation" for wild fluctuations. Some retail investors lamented on forums: "I bought DOGE to make quick money! Now that it has become a 'payment currency,' the price increases slowly and is unstable; Musk is cutting off our financial lifeline!"

Has DOGE really "changed sky"? Three major uncertainties hang overhead.

Musk's actions have painted a big picture of practical transformation for DOGE, but whether this can really happen is still hanging with three big question marks.


First, will the application scenarios be all thunder and no rain? Currently, Tesla's DOGE payment testing at supercharging stations only covers 3 states, and it can only pay for "charging service fees"; want to buy a car? No chance. SpaceX's supply chain settlement is also just a "small-scale pilot," far from large-scale implementation. If subsequent progress does not keep up, DOGE may likely fall back from being a "practical rising star" to the old path of being an "air coin," resulting in a false joy.

Second, will the regulatory stick suddenly fall? DOGE used to be closely monitored by the U.S. SEC (Securities and Exchange Commission) due to its lack of actual value, being listed multiple times as a potential security asset. Now that it is transitioning to a payment currency, regulation will only become stricter. The EU's (Crypto Assets Market Regulation Act) (MiCA) has long stated, "Payment-type crypto assets must pass anti-money laundering and anti-terrorism financing checks." But DOGE's current anonymous trading property makes it nearly impossible to pass the review. If forced to change the algorithm, the miner and user ecosystem may collapse directly.

Third, will the original intention of decentralization completely deviate? Musk's node cluster is essentially a semi-centralized model, completely contrary to DOGE's initial decentralized concept. If in the future Tesla and SpaceX tighten control over DOGE's nodes and transaction verification rights, DOGE is likely to become a "Musk enterprise exclusive token," completely losing the core value of cryptocurrency. This is also a major concern for many long-time fans, who feel it's a "betrayal of the original intention."


Personal opinion: The dog farm is waiting for the right wind; I think DOGE is still fluctuating today, but it could change at any moment!

Reasons:

The cost zone for dog farms is between 0.14-0.28; they won't let themselves lose money.

Musk or the SEC could casually make a move, and DOGE could rise or fall by 10%!

For retail investors, it is essential to remain calm at this time. Do not blindly follow trends, chasing prices up and down.

If you already hold DOGE, you can set stop-loss and take-profit points near the pressure and support levels according to your risk tolerance. If you haven't entered the market yet, it might be better to observe whether the price can break through key levels before deciding whether to intervene.

If you're not clear on the specific points, you can follow me, and I will provide real-time reminders for my friends who follow me; just follow my bamboo leaves!
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