The CEO of Robinhood believes DOGE is the "Future Currency of the Internet."
Dogecoin is quickly becoming a symbol of the crypto world's rags-to-riches transformation, with supporters hailing it as the "future." As a result, DOGE is establishing itself as a premier cryptocurrency and the go-to investment instrument for new crypto consumers.
On Thursday afternoon, Robinhood CEO Vladimir Tenev turned to Twitter to explain how Dogecoin (DOGE) may become the "next currency of the Internet" if developers take a vital step to improve its functioning.
On Thursday April 14, the CEO of the popular stock and cryptocurrency exchange pondered that topic carefully on Twitter, and came to the conclusion that it is doable, with two major modifications.
After his retail investing platform implemented a function allowing customers to buy and trade dogecoin, Robinhood CEO Vlad Tenev outlined the possibility in a long Twitter thread. Perhaps inspired by Tesla CEO Elon Musk's recent calls for Twitter to integrate Dogecoin, and responses from fellow crypto executives like FTX CEO Sam Bankman-Fried, who tweeted, "sure, why not DOGE," Tenev outlined how the popular meme coin could one day become the internet's chosen currency.
When compared to typical credit card network costs, Tenev stated that Dogecoin already has "vanishingly modest" transaction fees of around $0.003 per transaction — a benefit "compared to the 1-3 percent network fees that major card networks charge."
According to BitInfoCharts, the average cost of using Dogecoin since April 1 has fluctuated between $0.19 and $0.30. Over the same time span, Bitcoin has fluctuated between $1.35 and $3. The transaction cost range for Ethereum is substantially broader, ranging from $11 to $43.
Dogecoin presently has a 1-megabyte block size and a 1-minute blockchain, which means it can execute around 40 transactions per second (TPS). Though significantly quicker than Bitcoin and Ethereum, it pales in comparison to conventional rails.
The frequency with which this occurs, as well as the maximum size of the block, which limits the number of transactions it can carry, define how many transactions per second (TPS) it can process. The crypto business adheres to Visa's current 24,000 TPS and potential 65,000 TPS.
Tenev argues that the block size and block time of Dogecoin are the primary areas that need to be improved if the cryptocurrency is to gain widespread adoption.
Dogecoin's current block time, according to Tenev, is "a little on the lengthy side for payments," with a platform capable of completing about 40 transactions per second (tps). He added that in order to execute speedier transactions with credit card and payment processing giant Visa, which clears over 650,000 TPS (Transactions Per Second), DOGE's capacity would need to be increased by 10,000. Similarly, increasing the size of the block might speed up transactions on the chain.
However, in order to compete with Visa and other major payment processors, Tenev stated that Dogecoin developers will need to increase their efforts. Tenev noted in a Twitter thread on Thursday that the block time for Dogecoin, or the time it takes to add new blocks to the blockchain for transaction verification, should be faster than it is now. Tenev believes that the meme coin's creators strive for a 10-gigabyte block over time.
Furthermore, Tenev stated that doge is inflationary and has an endless supply, as opposed to bitcoin, which has a fixed quantity. However, considering the quantity of tokens issued each year, the doge's inflation rate is lower than the dollar's, he noted.
The Robinhood CEO also pushed back on worries that dogecoin might create inflation due to its ever-expanding quantity of tokens, arguing that the currency's inflation rate is now lower than that of the US dollar.
In recent years, Dogecoin has grown in popularity alongside other top cryptocurrencies such as bitcoin and ether. To create a market move, Dogecoin has always relied on substantial cryptographic advancements. Doge began as a prank eight years ago. Then, in early 2021, Elon Musk discovered it, thought it was humorous, and used his Twitter influence to transform the obscure cryptocurrency into a top-10 to-15 digital asset with a market valuation of $19.5 billion.
According to Coinbase, a single dogecoin was worth roughly $0.15 on Friday afternoon, with values expected to remain around that level for the rest of 2022.
Dogecoin is genuinely gaining traction. Dogecoin is accepted by BitPay, a cryptocurrency payment processor, but it only accounts for a small portion of sales, and Ethereum founder Vitalik Buterin is on the Dogecoin Foundation's Advisory Board, which was re-established in August, along with a Musk appointee.
As crypto networks expand in size, so do the hardware requirements for keeping the network's transaction records. These needs might grow to the point that it is no longer practical for smaller hobbyists to maintain the network. This might eventually lead to worries about centralization.
This choice, defined as speed against decentralization, would need "more complex gear," Tenev admits. It would make mining Dogecoin at home more costly for hobbyists. Tenev, on the other hand, believes "that's actually a reasonable bargain."
Tesla CEO Elon Musk is one of the most vocal supporters of dogecoin, having invested in the meme currency and allowing users to pay for products on the electric vehicle maker's website using dogecoin.
DOGE's price has only risen since it is clear that the cryptocurrency's strongest strength is its supporters.
Tesla supercharging station will take Dogecoin as payment. Click here to read