Elon Musk’s Favorite Memecoin: Dogecoin Finds Niche In Retail Payments

As a seasoned crypto investor with over a decade of experience under my belt, I’ve seen my fair share of cryptocurrencies come and go. But Dogecoin (DOGE) has managed to surprise me. Originally perceived as a joke, DOGE has evolved into a practical payment option for businesses, even pizza joints like Williamsburg Pizza!


Surprisingly, what started as a humorous take on digital currencies, Dogecoin (DOGE), is now being accepted by numerous American businesses as a legitimate method of transaction.

According to a new Bloomberg report, businesses such as Williamsburg Pizza in New York City and University Sports Grill in Tempe, Arizona, are now accepting this digital currency for their diverse range of goods – from pizzas and beers to baked potatoes.

Retailers Embrace Dogecoin As A Practical Payment

11 years after its initial introduction, which was often seen as a jest, Dogecoin (DOGE) has experienced an increase in acceptance by businesses aiming to utilize cryptocurrencies for practical transactions. This surge can mainly be traced back to the speed and affordability of DOGE’s transactions due to its low transaction fees.

At present, an average transaction fee for Dogecoin is roughly 0.07 DOGE, which equates to less than a penny. On the other hand, Bitcoin transactions typically cost around 79 cents, as reported by BitInfoCharts. Aaron McCann, co-founder of Williamsburg Pizza, shared this insight with Bloomberg.

Among all proof-of-work cryptocurrencies, Dogecoin stands out as the one that boasts transaction speeds and low fees suitable for merchants such as myself.

Despite DOGE payments making up only around 1% of the restaurant’s total sales, McCann is diligently working to expand their use. After spending years searching for a method to accept cryptocurrency, he created DogeExpress – a payment processor specifically designed for Dogecoin. This system has been successfully implemented at various retailers.

It’s worth noting that besides its popularity as a meme, DOGEcoin is also making a mark in the international remittance sector. Typically, transferring money across borders can incur significant costs – sometimes reaching up to 7%.

On the other hand, Dogecoin transactions usually get processed within a minute or so, which makes them faster and more efficient compared to Bitcoin that can take anywhere between 10 minutes up to an hour for its transactions to be validated.

High Volatility And Security Concerns

Despite its advantages, Bloomberg points out that Dogecoin is not without its drawbacks. It is considered less secure than BTC, and unlike Bitcoin, which has a limited supply, Dogecoin has no limit on circulation, making it less attractive for long-term holding. 

The volatility of Dogecoin is quite pronounced, almost twice as much as Bitcoin’s historical volatility. However, some people think that its price fluctuations have generally been more advantageous, with noticeable upward trends evident throughout its history.

Kevin Nohr, proprietor of University Sports Grill, started taking payments in Dogecoin about a month back and has successfully processed around 20 transactions. He values the commitment and backing of the community, expressing, “The fact that DOGE is still thriving in this sector carries great significance for the Dogecoin community.

Elon Musk, a strong advocate of Dogecoin, has subtly suggested that buying Tesla merchandise using Dogecoin might be possible again, following its removal earlier this year. Musk’s continuous interactions with Dogecoin-related accounts on social media continue to generate buzz around the cryptocurrency.

In the ongoing discourse about cryptocurrency legislation, I find myself contemplating a potential role should certain political circumstances unfold. If former President Donald Trump were to re-enter the White House, I might consider advocating for the establishment of a new department – the Department of Government Efficiency (DOGE). This proposed department could potentially lend more credibility to Dogecoin among the general public.

For businesses like University Sports Grill, the goal is to increase Dogecoin’s share of overall revenue through grassroots marketing efforts. “With a little bit more advertising and word of mouth, we could probably end up doing 10% of our overall revenue a month in Dogecoin,” Nohr said.

Elon Musk’s Favorite Memecoin: Dogecoin Finds Niche In Retail Payments

Right now, Dogecoin, which ranks as the 9th biggest cryptocurrency in circulation, is being traded at approximately $0.1048. Over the last 24 hours, its value has dropped by 3.5%, while over the past week, it has decreased by 4.4%.

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2024-10-02 22:12