A dog-based cryptocurrency is achieving Satoshi Nakamoto’s vision of “electronic cash”¹ by being used online in everyday situations.
This contrasts mainstream cryptocurrencies which are becoming ‘stores of value’ as they struggle with high transaction fees and users hoard their coins hoping for the value to increase.
As Dogecoin (DOGE) is based on a meme about a Shiba Inu dog, it can hardly be taken seriously as the next major cryptocurrency.
As such, its users are ignoring the potential value aspirations of holding it and are using it to tip other users online for witty or interesting content.
Dogecoin is also known for its community that donates DOGE to causes such as buying socks for homeless people in Skid Row, LA. They even supported the Jamaican Bobsled team.
The current fee for an under 10 minute Bitcoin transaction is $6.24². This is unsustainable for buying a coffee and means users will have to wait before they can use their coins in everyday situations.
The lightning network is designed to solve this problem although many supporters have thrown their weight behind Bitcoin Cash, an alternative with larger block sizes.
Until this issue is solved, coins such as Dogecoin will be the main proponents encouraging actual use of cryptocurrencies which is the bridge to real world adoption.
Article written by Tim Copeland
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