Dogecoin Twitter: DOGE the New Payment Method?
Dogecoin Twitter yields millions of results across all search engine platforms. While the Shiba Inu-inspired digital asset is a cryptocurrency and Twitter remains one of the most patronized social media networks, the paths of technologies continue to cross largely due to their association with Tesla Mogul and SpaceX Chief Executive Officer (CEO) Elon Musk.
The billionaire businessman dumped Bitcoin (BTC) in 2021 and accepted DOGE for payments on the Tesla Shop.
Having supported the cryptocurrency over the past three years, leading to more than 10,000% returns in the portfolios of DOGE holders, many analysts are asking whether the memecoin started by Jackson Palmer and Billy Markus could become the primary transactional currency for activities on Twitter. Is Dogecoin Twitter on the way?
Dogecoin Twitter: DOGE processes more transactions than most POW coins
Dogecoin was forked out of Charlie Lee's Litecoin (LTC) – the second cryptocurrency to hit the decentralized finance (DeFi) economy in 2011. Instead of relying on Bitcoin's algorithm, which saw the first blockchain process less than 30 transactions per second, DOGE tapped into the SCRYPT algorithm, which confirms transactions quickly.
Additionally, SCRYPT also helps generate several DOGE, handles many transactions, and takes a short period in mining blocks in the network.
This is why its blockchain processes more than 30 transactions per second and thousands of transactions daily.
As of 10:00 UTC on 18 April, DOGE was involved in approximately 21,000 transactions in the previous 24 hours. Its ability to process more transactions corresponded with a relatively lesser transaction fee of $0.3131 (below $1), data from CoinDesk showed.
Around 300,000 individuals and business organizations had a blue tick on Twitter before the announcement of the subscriptions came through after Elon Musk's takeover.
While businesses are being given gold tickers instead of blue, with the latter reserved for individuals, certain organizations such as New York Times and the Washington Post have disclosed that they would not be forking out money for the subscription service.
Despite this, many organizations have subscribed to the service, and so have certain individuals.
Should the 300,000 ticker holders stand, or if the number increases, by being able to process around 20,000 transactions daily, if DOGE was to be adopted by Twitter as its primary payment method, it could settle all transactions within 15 days. That's one reason why Dogecoin Twitter could happen.
Dogecoin Twitter: Will DOGE be adopted?
Dogecoin was initially unknown as a mainstream cryptocurrency because it was seen as a joke digital asset that poked fun at Satoshi Nakamoto, an unknown individual who tried to challenge the centralized finance status quo.
Despite its joke beginning, the influence of Elon Musk continues to reflect positively on the fortunes of the digital currency. The current owner of Twitter continues to tease the idea of a possible adoption due to certain activities on the platform in April.
To the surprise of many users and crypto lovers, Twitter changed its logo to Dogecoin for a brief period on 3 April. DOGE opened the day at $0.07909 and, on the back of the feature upgrade, soared by 30% to a yearly high price of $0.1026. While DOGE fell to an intraday low price of $0.07663 and eventually closed the day at a much-improved price of $0.09608, many market enthusiasts felt the enormous influence of Twitter’s decision on the market value of the meme-inspired coin.
In the process, investor interest also reached a yearly peak of roughly $3.5 billion. This took the project's market capitalization to around $13.3 billion, data from crypto price tracker CoinMarketCap showed.
Before becoming the owner of Twitter, Elon Musk tweeted in January 2022 that he would consume a meal on television if the American multinational fast food chain McDonald's accepted Dogecoin as a payment method.
Although the whispers of adoption continue to be on the horizon, this is not the first time Elon has supported a cryptocurrency.
Many Dogecoin holders think the cryptocurrency they continue to hold could see mainstream adoption soon. An Elon Musk-owned company once adopted Bitcoin (BTC) as a payment method in March 2021. This sent the largest digital asset by market capitalization to a then all-time high. Three months later, in May 2021, Tesla announced a discontinuation of the service. This began a five-month bearish cycle that crippled the blockchain-powered economy.
Dogecoin Twitter could happen in the future, but DOGE holders should consider other price drivers as the crypto market is not one way but bullish and bearish.
Author: Raphael Minter
Raphael Minter/ Albert Zuhnden (preferred pen name) is a crypto finance writer, data miner, and fundamental analyst. Raphael has written hundreds of articles about centralized and decentralized financial instruments such as precious metals, commodities, stocks, and cryptocurrencies. He broke into digital finance in 2016 and believes digital assets and blockchain technology is the future of finance.