In an unexpected twist, Dogecoin (DOGE), originally created as a parody of cryptocurrencies, has emerged as a viable payment option for businesses in the United States.
A recent Bloomberg report highlights establishments like Williamsburg Pizza in New York and University Sports Grill in Tempe, Arizona, which accept the token for their products, from pizza to beer and even baked potatoes.
Retailers are embracing Dogecoin as a practical payment
Despite being considered a joke since its inception eleven years ago, DOGE has gained popularity among companies looking for integration cryptocurrency in real-world transactions, largely attributed to the speed and low transaction fees associated with the token.
Currently, the average transaction fee is approximately 0.07 DOGE (less than a cent). Bitcoin transactions can cost around 79 cents, according to BitInfoCharts. Speaking to Bloomberg, Aaron McCann, co-founder of Williamsburg Pizza, said:
Dogecoin is the only proof-of-work cryptocurrency with transaction times fast enough and fees low enough to be practical for merchants like me.
Although DOGE payments represent approximately 1% of the restaurant’s gross sales, McCann is actively working to increase their use. After years of trying to find a way to accept cryptocurrency, he developed DogeExpress, a payment processor dedicated to Dogecoin, which he has implemented at several retailers.
Interestingly, DOGE also finds utility in the money transfer market. Traditionally, sending cash internationally involves high fees, often as much as 7%.
DOGE transactions, on the other hand, typically complete in about one minute, making them more efficient than Bitcoin, which can take 10 minutes to an hour for transaction validation.
High volatility and security concerns
Despite the advantages, Bloomberg points out that Dogecoin is not without disadvantages. It is considered less secure than BTC, and unlike Bitcoin, which is a limited offerDogecoin has no circulation limit, making it less attractive for long-term ownership.
DOGE’s volatility is also notable, with a historical volatility nearly double that of Bitcoin. Still, many believe that price movements have been more favorable overall, with significant upward trends observed over the years.
Kevin Nohr, owner of University Sports Grill, started accepting Dogecoin a month ago and has completed about 20 transactions. He appreciates the loyalty and support of the community, noting, “The fact that DOGE is still in this space means a lot to the DOGE community.”
Elon Musk, Dogecoin’s most prominent proponent, has hinted at restoring the ability to pay for Tesla merchandise with Dogecoin after it was removed earlier this year. Musk’s continued involvement with Dogecoin-themed accounts on social media is further fueling interest in the token.
As discussions about cryptocurrency regulation continue, Musk has even done just that suggested leading a new Department of Government Efficiency (DOGE) if Donald Trump returns to the White House – a move that could further legitimize Dogecoin in the eyes of the public.
For companies like University Sports Grill, the goal is to increase Dogecoin’s share of total revenue through grassroots marketing efforts. “With a little more advertising and word of mouth, we could probably do 10% of our total revenue per month in Dogecoin,” Nohr said.
DOGE, currently ranked 9th among the largest cryptocurrencies on the market, is trading at $0.1048 and has posted losses of 3.5% and 4.4% over the past 24 and seven days, respectively.
Featured image of DALL-E, chart from TradingView.com