Dogecoin Could Become the Currency of the Internet, Says Robinhood CEO

The top boss at Robinhood is optimistic about dogecoin’s prospects – proposing the meme token has the potential to become the “future currency of the internet” if the developers take a major step to improve its functionality.

Robinhood CEO Vlad Tenev has the hypothetical in a long twitter thread after its retail investment platform added a feature that allows users to buy and sell dogecoin.

Tenev noted that dogecoin already has “vanishingly small” transaction fees compared to traditional credit card network fees — an advantage “compared to the 1-3% network fees charged by major card networks.”

But to compete with Visa and other mainstream payment processors, Tenev said dogecoin developers would need to increase the crypto token’s “block time,” or the process by which it verifies transactions.

Tenev said dogecoin’s current block time is “a bit on the long side for payments,” with a platform capable of executing about 40 transactions per second (tps).

“By comparison, Visa’s network can theoretically handle 65,000 tps,” Tenev said. “Doge should be able to significantly outperform Visa, meaning throughput should be increased by at least 10,000x. Fortunately, this is easily resolved by simply increasing the block size limit.”

The Robinhood chief also expressed concerns that dogecoin would fuel inflation as it has an ever-growing supply of tokens – claiming that the currency’s inflation rate is actually lower than the US dollar as of now.

Dogecoin has gained popularity in recent years alongside other leading cryptocurrencies such as bitcoin and ether.

A single dogecoin was worth about $0.15 as of Friday afternoon — with prices hovering near that point for much of 2022, according to Coinbase.

Robinhood CEO Vlad Tenez
Robinhood CEO Vlad Tenez outlined how dogecoin could gain wider adoption as a payment platform.
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The market cap of the meme token is about $19.5 billion, much lower than that of bitcoin, which is approaching $769 billion.

One of the most prominent proponents of dogecoin is Tesla CEO Elon Musk, who has invested in meme token and allows customers to pay for merchandise on the electric car manufacturer’s website using dogecoin.

Musk, who this week made an offer to buy Twitter for $43 billion, has also suggested that the social media company should integrate dogecoin into its platform.


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