Anyone who has ever heard of crypto has heard of Dogecoin. As one of the best-known cryptocurrencies in the world, that soared after Elon Musk and other celebrities tweeted about it.
While many agree that Dogecoin is simply air wrapped in a cryptocurrency, others believe that it could easily become the “currency of the internet” or the “currency of the people”. This bold statement was announced by Vladimir Tenev, the CEO of the well-known American investment platform Robinhood.
The opinion the CEO of Robinhood
Vladimir Tenev shared his opinion on Dogecoin,with his 200,000 followers on Twitter. In the 12-part thread, the CEO of RobinHood explains the features that he believes could make Dogecoin very big and actually become the “currency of the internet”. He proposes the question: what does Dogecoin need in order to actually make this happen?
The first feature that a currency of the internet needs, according to the CEO of Robinhood, is low transaction costs. A transaction with Dogecoin can be completed for about $0.003, since the update in November. This is a lot less than the 1% to 3%, which most payment cards charge, Tenev points out.
A second important feature, is that transactions can be completed quickly like finance service providers like VISA that can theoretically perform 65,000 transactions per second. A currency of the internet should at least be able to do this as well. At the moment, Dogecoin can’t scale like VISA, but Tenev says it could happen in the future, by simply increasing the block size.
He also addresses a popular criticism people have of Dogecoin, namely that the supply is constantly growing and there is no limit to how big it can get. Currently, the supply is 132,000,000,000, and it is growing larger by about 5,000,000,000 per year. This means that there is a growth rate of about 3.8%. Wich is significantly less than 5%, the inflation rate of the US Dollar, according to Vladimir Tenev.
So all in all, Vladimir Tenev sees a lot of potential in Dogecoin. Do you think Dogecoin is more than internet driven hype? Or is it the future of internet finance?