Why Dogecoin Is No Longer a Joke
Cryptocurrency has grown in popularity as an investment vehicle. Many people are interested in investing in cryptocurrencies whether to earn short-term benefits or as a longer-term investment. Still, some people are skeptical about investing in cryptocurrencies or using cryptocurrencies as a payment method. Nonetheless, there is one cryptocurrency that may be unique, and that is Dogecoin ($DOGE). Why is Dogecoin regarded as standing out from the crowded field of mem coins? A key reason BigONE discovered is that cryptocurrency enthusiast and billionaire Mark Cuban recently stated he believes that Dogecoin is a powerful payment method. This lies at the heart of why Cuban thinks Dogecoin has a lot of potential.
What are the practicalities of Dogecoin for payment?
As is well-known, Dogecoin which began as a joke or an emoji launched by its co-founders in 2013 had reached a market cap of over $65 billion in May this year. Dogecoin’s fun meme-driven community backing and simplicity to use are key to its popular success. Maybe it found a market by accident rather than design, but that also underlines the power of memes to spread ideas and grow products. Its goal is to bring cryptocurrency and dog-based emojis together on the Internet. Although the creators of Dogecoin did not want people to take it seriously, the current market value of Dogecoin clearly shows that its creator underestimated how much people love Dogecoin.
From BigONE’s perspective, the reason Shark Tank TV star and owner of the NBA team Dallas Mavericks Cuban is bullish on Dogecoin is straightforward. He recently told US-broadcaster CNBC recently that Dogecoin “a medium that can be used for the acquisition of goods and services,” and that “the community for doge is the strongest when it comes to using it as a medium of exchange”. In recently announcing a partnership with a US cryptocurrency platform to make crypto more accessible to ‘Mav’ fans Cuban said his 12-year-old son got him into Dogecoin when it was less than a penny. “I was like “let’s do this” because it’s a cheap way for him to learn how all of this works,” he said.
Dallas Mavericks is one of many merchants who accept Dogecoin as payment for fans purchasing tickets and merchandise. Earlier this year, the Dallas Mavericks completed over 20,000 Dogecoin transactions, making them the world’s most prominent Dogecoin merchant. Cuban tweeted: “The @dallasmavs have done more than 20,000 #Dogecoin in transactions, making us the LARGEST #DOGECOIN MERCHANT IN THE WORLD! We thank all of you and can only say that if we sell another 6,556,000,000 #DOGECOIN worth of Mavs merch, #dogecoin will DEFINITELY HIT $1 !!!”
What sets Dogecoin apart from the rest of the pack?
BigONE believes that Dogecoin’s utility as a cryptocurrency can set it apart from other cryptocurrencies. As way of comparison, consider Bitcoin. The main distinction between Dogecoin is that many investors prefer to hold Bitcoin for an extended period as a long-term investment. Investors hope to see Bitcoin continue to appreciate, with its recent new all-time highs further strengthening investors’ confidence in long-term holdings. Some experts consider Bitcoin as first and foremost a “digital version of gold”, as a store of value, rather than a medium of exchange.
Elon Musk, the CEO of Tesla, is also a famous fan of Dogecoin and one of the most vocal supporters of cryptocurrency on social media. Elon Musk also agreed with Cuban on the utility of Dogecoin as a payment method in a Twitter response. So how did Musk, with his Tesla and SpaceX commitments, get so involved with Doge? Apparently, Musk’s first contact was in 2018 when he asked Doge co-founder, Jackson Palmer, to help him deal with the problem of Twitter scam bots. The next year in 2019, he tweeted that, “Dogecoin might be my fav cryptocurrency. It’s pretty cool.” His follow-up tweets in 2020 only served to inflate the prices of Doge, including in January 2021 when Musk helped send Dogecoin prices up 800%.
Dogecoin’s future looks bright
Although Cuban is optimistic about Dogecoin as a viable crypto currency, he admits that Dogecoin has no intrinsic value and therefore may not be the best investment choice for investors. Nevertheless, BigONE believes that if cryptocurrency can be classified as an asset class and its long-term development has good prospects in the future, the widespread adoption of cryptocurrency as a payment method with very low transaction fees and fast transaction times supports the thesis that it will become more mainstream. If Elon Musk and Mark Cuban are correct, and it gains in popular appeal beyond its core community, this core payment feature of Dogecoin may make it superior to other cryptocurrencies in terms of maintaining its value and sustained growth for the future.