In a surprising turn of events, Dogecoin (DOGE), which was initially launched as a spoof on cryptocurrencies, is now establishing itself as a legitimate payment method for businesses throughout the United States.
A recent report by Bloomberg details businesses like Williamsburg Pizza in New York and University Sports Grill in Tempe, Arizona, that now accept the cryptocurrency for various items, including pizza, beer, and baked potatoes.
Retailers Adopt Dogecoin As A Feasible Payment Option
Even though it has been perceived as a joke since its creation 11 years ago, DOGE has become increasingly popular among businesses that want to integrate cryptocurrency into tangible transactions, mainly due to the token’s quick processing times and minimal transaction fees.
At present, the average cost per transaction is approximately 0.07 DOGE—less than a cent—while Bitcoin transactions can reach around 79 cents, as reported by BitInfoCharts. Aaron McCann, co-founder of Williamsburg Pizza, shared with Bloomberg:
Dogecoin is the only proof-of-work cryptocurrency that is fast enough in transaction times and low enough in fees to be practical for businesses like mine.
Although DOGE transactions only account for about 1% of the restaurant’s total sales, McCann is eager to enhance its adoption. After trying for years to find a way to accept cryptocurrency, he created DogeExpress, a payment processing solution specifically for Dogecoin, which he has rolled out at multiple retailers.
Interestingly, DOGE is also gaining traction in the remittance sector. Traditionally, sending money abroad incurs high fees—often up to 7%.
Conversely, DOGE transactions are usually finalized in about one minute, making them significantly quicker than Bitcoin, which can take between 10 minutes to an hour for confirmation.
Significant Volatility And Security Issues
However, despite its benefits, Bloomberg notes that Dogecoin has its drawbacks. It is deemed less secure than BTC, and unlike Bitcoin, which has a finite supply, Dogecoin has no circulation cap, which diminishes its appeal as a long-term investment.
The volatility of DOGE is also noteworthy, with its historical fluctuations being nearly twice that of Bitcoin. Nevertheless, many enthusiasts believe its price movements have been largely favorable, with notable increases observed over time.
Kevin Nohr, owner of University Sports Grill, began accepting Dogecoin just a month ago and has processed around 20 transactions. He values the community’s loyalty and support, stating, “The continued existence of DOGE in this market means a lot for the DOGE community.”
Elon Musk, the most prominent advocate of Dogecoin, has hinted at reinstating the ability to use Dogecoin for Tesla merchandise purchases, a feature that was removed earlier this year. Musk’s ongoing interactions with Dogecoin-themed accounts on social media further amplify interest in the cryptocurrency.
As discussions about cryptocurrency regulations progress, Musk has even proposed leading a new Department of Government Efficiency (DOGE) if Donald Trump returns to the presidency—a move that could lend more credibility to Dogecoin in public perception.
For establishments like University Sports Grill, the intention is to boost Dogecoin’s contribution to overall revenue through community-driven marketing. “With a bit more promotion and word of mouth, we could likely reach 10% of our monthly revenue from Dogecoin,” Nohr observed.
Currently, DOGE holds the 9th position among the largest cryptocurrencies, trading at $0.1048, with losses of 3.5% and 4.4% over the past 24 hours and the past week, respectively.
Featured image from DALL-E, chart from TradingView.com
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