In recent weeks, it has been difficult to go through the day without coming across a headline or 50 referring to dogecoin (DOGE). The cryptocurrency of the memes took its toll the price will appreciate exponentially on the heels and a series of celebrity endorsements, including billionaire Mark Cuban, Kiss member Gene Simmons and entertainment icon Snoop Dogg.
It’s easy to dismiss what’s going on with DOGE in the middle of another round of madness of madness – like the ones we’ve seen before – especially thanks to “The Dogefather” by Elon Musk, who had ideas for a workshop before his Saturday night life guest appearances 8th May.
This time, however, something has happened that has never been seen before: the use of dogecoin for payments is rising along with the price of the coin. In addition to the Dallas Mavericks of the National Basketball Association, a team owned by dogecoin supporter Mark Cuban, Major League Baseball Franchise now they are also entering the DOGE game. But is the growth of DOGE payments sustainable even outside hype cycles?
Very nice medium of exchange
Money can be a tool for coordinating human activities. In order to assume this role, the asset used as a medium of exchange must control the positive sentiment of a sufficiently large audience. This favorable approach may stem from a long-standing convention (as in the case of Fiat), technological reliability (as a token designed to facilitate monetary transactions on a blockchain), or simply from the fact that people like or think it is easy and funny.
Dogecoins lack technological robustness; has not experienced a major software update for many years. Until recently, the practical use of the asset was mainly limited to tipping people on forums for funny remarks.
Yet it is inconceivable that the combination of Dogecoin’s memetic power – something that has repeatedly manifested itself in the past – plus the disappearing boundaries between collective sentiment and collective action, could mean more for acceptance as a means of payment than for reputation or technological superiority.
It is true that the main motivation for businesses to start accepting DOGE payments at this point is probably ticket to the hype train that such a step will be taken. In addition to viral fame, the brand can benefit from the support of a live dogecoin crowd who are interested in supporting companies that throw bags on social media – a relationship that some observers have designation as “mutually parasitic”. However, anyone is guessing what will happen when a critical mass of companies decide to go down this path.
Very zoomer money?
Analysts often cite the popularity of dogecoin among younger Internet users as a rocket fuel that can eventually bring it to a variety of incredible places. In a recent interview with Ran Neuner, co-founder and CEO of blockchain investment firm Onchain Capital, suggested that young TikTok users can generate enough network effects to make DOGE a viable tool for online transactions.
It is difficult to estimate how popular dogecoin is in teenagers and young adults. In fact, it is a compelling idea that the coin, which began as a joke and now has a market capitalization of $ 77 billion, embodies the nihilistic spirit of the younger generation. It is also true last summer’s price pump started on TikToku.
Still, when it comes to how many zooms – Z-generation members – use DOGE, the honest answer is that it’s impossible to know. Reliable data from a survey on the use of cryptocurrencies are difficult to obtain, twice as much for age-specific data. According to the latest iteration of Piper Sandler Investment Bank survey “Taking Stock With Teens”, 9% of teenagers are in the United States reported trade in cryptocurrencies. Although the statistics of almost one in ten look solid, there are no details on which assets the respondents traded.
Another recent survey by the Charles Schwab Financial Group measured behavior of cryptocurrency trafficking among young adults in the UK. It was found that more than half of British investors between the ages of 18 and 37 traded or held cryptocurrencies, compared with 25% of those who bought shares. Again, no details on the use of specific coins or the proportion of respondents who stated that they were active on TikTok.
In a subsequent interview with Cointelegraph, Neuner likened the Dogecoins to an uprising movement: “Dogecoin has become an anti-establishment, an anti-normal,” he added:
“People who don’t like to follow the rules turn to Dogecoin to show that they can make everything work, despite the chances.” I’ve said it many times: I think it’s always 20% about technology, 80% about adoption. And in this case, the Doge is actually adopted. “
Such a wide attraction
While it remains an open question whether a single age or interest group can manage the rise of an asset to the prestigious state of a common payment method, Dogecoin has the potential to attract a wide range of users. In addition to nihilistic youth traders and loving days, this could be an easy and friendly entry for beginners in the digital asset space.
Without pretending to be a technologically complex asset, the pup-emblazone coin is well placed to become the first cryptocurrency for less tech-savvy newcomers coming in droves as the crypto goes more and more into the mainstream.
Moreover, an atmosphere of frivolity could attract people nostalgically after the pre-bitcoin era (BTC) derivatives were traded on the main institutional platforms. Could Dogecoin be the last bastion of the old crypto spirit that traditional financial sharks would want to deal with – a folk coin?
Many crypto experts are expected to have none of this. Asked if Dogecoin had a future as a medium of exchange, Joshua Frank, CEO of The TIE’s cryptocurrency analytics firm, answered Cointelegraph:
“No. It’s a funny meme and has gained tremendous mainstream attention, but I don’t anticipate any future in which the Doge would be a coin of the Internet.”
Yet with the right combination of social sentiment, well-timed celebrity tweets and big brand raids, it doesn’t seem feasible for DOGE to find mass popularity as a payment tool in any big corner of the online economy.
However, price speculation will remain a big problem, because until they have a sufficient net effect, whales or influential people could easily influence the coin.