- Dogecoin, in just a few months, has plunged retail investors into a crypto frenzy, so much so that the head of BitPay said it is now a bigger payment option than most coins.
- The view on Dogecoin has been mixed – while some influential people like Elon Musk and Mark Cuban took a liking to it, some like CNBC’s Jim Cramer and Cardano’s Charles Hoskinson were dismissive.
In recent weeks, Dogecoin has seen an impressive bull run. While most can point the finger at Elon Musk for attention, no doubt over the past few months he’s witnessed a lot of retail adoration. As Bitcoin slowed price performance, Dogecoin’s profile continued to rise, not only for its investment value but also for its payout value.
BitPay Commercial Director Sonny Singh revealed in an interview with Bloomberg that Bitcoin’s payment value is dropping dramatically. Retail investors now prefer to pay with altcoins rather than Bitcoins, with Dogecoin leading the way on this front.
BitPay is an encrypted payment service provider. It offers crypto processing service for traders. The company processes over $ 1 billion in payments per year.
Are people spending crypto?
Singh revealed that unlike four years ago, when Bitcoin accounted for 95% of payments processed by BitPay, altcoins are now popular options. Bitcoin’s dominance has plummeted in recent weeks and is at an all time high.
Last week we had our lowest Bitcoin by a measure of 50%. We are seeing a lot more volume coming from Dogecoin… We have seen over 10 percent of our trades coming from Dogecoin
The COO believes there is a shift in both retail buying and spending, with most retailers now choosing Bitcoin altcoins for investments and transactions.
One of BitPay’s most notable customers is Mark Cuban. The billionaire announced that his NBA franchise, the Dallas Mavericks, would start accepting Dogecoin last month. The NBA team were the first to accept Dogecoin after BitPay rolled out this option. At the time, Cuban said,
The Mavericks have decided to accept Dogecoin as a form of payment for Mavs banknotes and merchandise for a very important and shattering reason, because we can! Because we can, we chose to do it. We chose to do this because sometimes in business you have to do things that are fun, engaging, and hopefully generate a lot of PR.
In April, BitPay processed over 6,000 Dogecoin transactions.
– Mark Cuban (@mcuban) April 26, 2021
Is Dogecoin a bubble?
But while the interest of retailers is undeniable, some analysts are adamant that Dogecoin’s price movement is being manipulated. CNBC’s Jim Cramer is not a fan of Dogecoin and believes he is being driven by the hype generated by billionaires. In a recent blog post from the TV personality, he noted,
Dogecoin was meant to be a joke and it’s still a joke except a lot more people are taking part in it. I think a more serious market would be a betting market on the direction of dogecoin as the currency’s action is more reminiscent of sports betting. Why not? For me it’s just a sport, so why not play on it.
Charles Hoskinson of Cardano held the same view, as we have reported. Hoskinson believes that aside from a few billionaires who take a liking to it, there are whales who manipulate its price. In addition, he warned that the bubble was going to burst and that retailers would end up losing a lot of money. In such a case, he expects regulators to be drawn into the industry and introduce restrictive regulations.