Can Dogecoin become “the people’s payment method”?
A few days ago, cryptocurrency investor billionaire Mark Cuban mentioned Dogecoin again after he had previously claimed in a tweet that “Dogecoin will become a payment method.” This tweet helped Dogecoin push the price up by about 30%, and Dogecoin enthusiasts continue to be pleased with Elon Musk and Mark Cuban touting the potential of Dogecoin as a digital currency. However, many people are skeptical about whether Dogecoin can become a “people’s payment method.” However, according to the information held by BigONE, Dogecoin has been making positive moves. They announced that they would reorganize into a nonprofit foundation. It proved true, and the new board of directors decided to hire a full-time paid work team. This news is helpful to the future development of Dogecoin. If we judge from the current popularity of Dogecoin, it is possible to become a payment method for people.
Can Dogecoin be used as currency?
Mark Cuban’s view of Dogecoin as a currency is far from the indifferent stance of Shark Tank judges and cryptocurrency enthusiasts on the popular meme coin earlier this year. Instead, mark Cuban’s argument is that if people use Dogecoin as a payment method for buying goods and services, and these companies that provide goods and services are willing to accept it, it is a usable currency. To some extent, this argument is tenable.
Many cryptocurrencies have been struggling to become mainstream cryptocurrencies, but Dogecoin does not need to be so. It has an active community of supporters, many of whom are first-time investors. This popularity will contribute to its success as a payment currency.
Can Dogecoin’s high popularity help it achieve all its goals? It is not enough!
As an investment, one of the dangers of Dogecoin is that it is still a very speculative game, and its price often rises due to the tweets of Elon Musk and Mark Cuban. But the fact is that Dogecoin is still a cryptocurrency without a white paper and no real business plan. If Dogecoin wants to become a payment currency, it needs to establish partnerships with more retailers. In addition to these, it also requires a full-time team to solve any technical problems that arise and push them forward. Of course, with Dogecoin’s reorganization of the non-profit organization foundation and the new board of directors also mentioned the plan to hire a full-time paid team, the future of Dogecoin is still worth looking forward to.
It’s also worth noting that Dogecoin is built using the same energy-intensive PoW mining model. If Dogecoin grows, its carbon emissions will also increase, while other eco-friendly cryptocurrencies use different mining models, cost Only a small part of energy. When the environmental protection mode is turned on globally, the non-environmental method is still used for mining, which is detrimental to the long-term development of Dogecoin.
Another challenge for Dogecoin is that any cryptocurrency used only as a payment method may be overwhelmed by the growth of stable coins and digital government currencies. Stable coins are like ordinary cryptocurrencies, except their value is linked to another commodity, such as the U.S. dollar. This means that they bring the benefits of encrypted payments but without price fluctuations. For retailers, this is a more attractive proposal because cryptocurrency price fluctuations can cause serious damage to their cash flow.
If the United States launches a digital dollar, it will receive the full support of the government. Moreover, while China is already experimenting with the digital renminbi, the United States decides whether to follow suit. These developments make the future of Dogecoin more confusing, and the development space will become more complicated.
How much Dogecoin does Mark Cuban own?
When the Dallas Mavericks accept Dogecoin payments and gain the purchasing power of Dogecoin lovers, this is an excellent promotional opportunity for Dogecoin itself. But the fact is that Mark Cuban only owns Dogecoin worth $494, which is a tiny proportion of his other cryptocurrency investments.
Dogecoin can be obtained from most mainstream cryptocurrency exchanges like BigONE. By holding a small amount of Dogecoin, you can join the cryptocurrency community, making investing in Dogecoin more interesting. However, when you decide to buy Dogecoin, please make sure that it is a small part of your entire investment portfolio. All cryptocurrency investments are risky, and diversified investment and reasonable investment is always the most reliable way.
About BigONE
BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.
