“It’s a medium that can be used for the acquisition of goods and services. The community for doge is the strongest when it comes to using it as a medium of exchange.”
Tesla and SpaceX CEO, Elon Musk who has been supporting Dogecoin, chimed in his agreement on the matter.
An objective examination of the qualities of “strong” payment coins, such as throughput and low transaction costs, however, shows better options do exist. Although, when has the world ever adopted the ‘best technology’ on anything?
Dogecoin Use Cases
Earlier this year in March, as Dogecoin was about to make its epic run-up, the Dallas Mavericks announced they would start accepting DOGE for tickets and online merch.
The move was somewhat groundbreaking as it showed the world, and those who were keen to point out Dogecoin’s lack of use cases that a large scale business can adopt doge as payment.
Cuban said the decision to do this was based on nothing other than the fact that they can. He added that the benefits of the move would hopefully bring about positive PR.
“Because we can, we have chosen to do so. We have chosen to do so because sometimes in business you have to do things that are fun, engaging and hopefully generate a lot of PR. So we will take Dogecoin, today, tomorrow and possibly forever more.”
Just five weeks later, Cuban tweeted that it was an outstanding success, with more than $122k of merch paid for with DOGE. He also said he intends to keep every DOGE earned.
Since then, both Cuban and Musk have continued to reiterate their support for Dogecoin.
Last week, Cuban tweeted an offer of “special pricing” for merch buyers paying with DOGE. While Musk’s SpaceX recently announced plans to pay for adverts, beamed into the sky by satellite, using cryptocurrencies including Dogecoin.
Comparing Cryptos for Payment
Cuban and Musk have been vocal to push the payment narrative for DOGE, but there are other cryptocurrencies that in fact are cheaper to use and feature higher throughputs.
Data from bitinfocharts.com shows the average Dogecoin transaction fee comes in at $0.772. Whereas for Litecoin it’s just $0.015, while XRP is fractions of a penny.
Similarly, transactions per second for Dogecoin is rated at 33, while Litecoin is 56, and XRP is a whopping 1,500.
But the Dogecoin advocates, Cuban included, argue that DOGE for payments is about much more than just the raw numbers. Instead, as Cuban said, it’s also about the community response, which is extremely important.
DOGE Price Action
Dogecoin dipped along the rest of the crypto market. From peak to trough, DOGE suffered a 58% fall in price, bottoming at $0.16 in mid-June.
Since then, it has tested this support level on two further occasions, but failed to gain bigger momentum.
Nonetheless, early August saw a fightback leading to a decisive move above the 50-day moving average. DOGE has gone on to build on this momentum leading to a 27% gain since the breakout.
At the time of writing Dogecoin is trading at $0.32 with 29.11% gains on the weekly chart.
Cuban was quick to dismiss any insinuations that he would be pumping the DOGE price. If anything he “pumps” Mavericks merchandise products.
Source: Mark Cuban Advocates Dogecoin For Payments, Elon Musk Agrees – Fintechs.fi