Bitrabo Editorial
In an unforeseen development, Dogecoin (DOGE), which began as a humorous take on cryptocurrencies, is now being accepted as a legitimate payment method by various businesses throughout the United States.
A recent article by Bloomberg details several establishments, such as Williamsburg Pizza in New York and University Sports Grill in Tempe, Arizona, that allow customers to use DOGE for purchases including pizza, beer, and baked potatoes.
Businesses Choose Dogecoin for Transactions
Though traditionally seen as a joke since its creation over a decade ago, DOGE has captured the interest of businesses eager to utilize cryptocurrency for everyday transactions, mainly due to its quick processing times and minimal transaction fees.
The current average transaction fee for DOGE is about 0.07 DOGE, which is less than a cent, in contrast to Bitcoin’s fees that can reach approximately 79 cents, based on BitInfoCharts data. Aaron McCann, co-founder of Williamsburg Pizza, stated in an interview with Bloomberg:
Dogecoin stands out as the only proof-of-work cryptocurrency with the necessary speed and low fees to be advantageous for merchants such as myself.
While DOGE transactions contribute to around 1% of the restaurant’s total sales, McCann is keen to encourage its use further. After much effort to accept cryptocurrency, he created DogeExpress, a payment processor designed specifically for Dogecoin, which is now used by several retailers.
Additionally, DOGE is proving useful in the remittance sector, where sending money internationally can incur high fees, sometimes nearing 7%. In comparison, DOGE transactions are generally processed in about one minute, making them more efficient than Bitcoin transactions, which can take between 10 minutes to an hour to validate.
Concerns Over Stability and Security
However, Bloomberg notes that Dogecoin comes with its own set of challenges. It is perceived as less secure than BTC, and unlike Bitcoin—which has a capped supply—Dogecoin can be endlessly produced, making it less appealing for long-term investment.
Moreover, DOGE is known for its significant price fluctuations, with a historical volatility nearly double that of Bitcoin. Nonetheless, many investors find its overall price movements to have been favorable, marked by notable upward trends over time.
Kevin Nohr, who runs University Sports Grill, started accepting Dogecoin just a month ago and has processed approximately 20 transactions. He values the support of the DOGE community, expressing that “the mere existence of DOGE in this arena holds great significance for its community.”
Elon Musk, a key advocate for Dogecoin, has suggested reinstating the option to buy Tesla merchandise with DOGE after it was removed earlier this year. His continuous interactions with Dogecoin-related accounts on social media further ignite interest in the cryptocurrency.
As conversations surrounding the regulation of cryptocurrencies continue, Musk has even proposed the establishment of a new Department of Government Efficiency (DOGE) if Donald Trump were to return to the presidency, a move that could bolster Dogecoin’s credibility in the public eye.
For establishments like University Sports Grill, the aim is to boost Dogecoin’s contribution to their overall revenue through community-focused marketing strategies. “With a bit more advertising and word of mouth, we’re hopeful Dogecoin could account for 10% of our monthly revenue,” Nohr mentioned.
Currently, DOGE is positioned as the 9th largest cryptocurrency, trading at $0.1048 and experiencing dips of 3.5% and 4.4% over the last 24 hours and the past week, respectively.
Featured image from DALL-E, chart from TradingView.com