Bitcoin in February was steering to its worst week in quite a long time, as Dogecoin managed to leap by over a quarter. Bitcoin was also down by 13% at one point in May and it has slumped by a fifth since it hit $65,000 (a new high) last month. Cryptocurrency markets have gyrated.
It appears, though, that these fluctuations often occur just at the moment Elon Musk says something or appears somewhere. The unconventional CEO has been keen to adopt and promote cryptocurrency, tweeting about bitcoin and dogecoin early in 2021. The markets responded. More recently, Musk knocked Bitcoin because Tesla issued a statement saying they are going to stop accepting bitcoin payments as they are concerned about the environmental impact.
Cryptocurrencies and Consumers
A key interest in cryptocurrencies for consumers is the investment potential. However, with volatile markets, this isn’t a widely appealing benefit. Use of bitcoin, dogecoin, and ether could be driven up if their properties as payment methods are better understood.
Fintech companies have developed and published many banking and payment solutions which are alternatives to the traditional, institutional models. Many industries were quick to adopt them but a prominent example would be the online casino industry. Gamers want to be able to deposit and withdraw money quickly and securely so they can play online casino games smoothly and with a full focus on enjoyment. This is why providers like Casumo offer Skrill and Neteller, which allow for faster transactions and an extra security buffer as gamers needn’t register bank details.
Cryptocurrencies could well be recognised as part of this trend. However, due to their volatility as a commodity, the full scope of this impact will always be complicated. PayPal and Tesla, as well as other companies and sports franchises, have recently begun embracing mainstream coins like bitcoin, which all helped validate the technology. However, since Musk’s Tesla have retracted this, while still stating they are looking at other cryptocurrencies as alternatives, the market shook.
Working with Doge Developers
Musk has stated that he is working with the developers at Doge so that they can improve the transaction efficiency. This is promising and he’s also stated that it was a hustle last week, with knocking the price. At the time it is not clear as to whether Musk is referring to the energy, the sustainability, or the currency but it would seem that there is certainly a lot of room for improvement. Dogecoin is going to consume 0.12kw of electricity for every transaction that is made. If you look at Bitcoin, you will see that this stands at 707kw. The token which has the logo of a Shiba Inu dog has really surged this year. Now it is the fourth-biggest currency out there. There are not many companies who accept this for payment and the supply of it is unlimited. Bitcoin’s growing value comes down largely to the fact that it has been accepted as a mainstream adoption for payment. It has a lot of value given its limited supply as well, which is very interesting to say the least.
David Kimberley’s Statement
David Kimberley, who is a big influencer when it comes to cryptocurrency, believes that Dogecoin is a lesson in greater foolery. At the end of the day, only time will tell what the future holds, but right now it would seem that cryptocurrency is on the rise and that there are going to be some more powerful movements in the future as well. At the end of the day, it’s great to see smaller coins gain movement but the fact that Dogecoin is unlimited in terms of production could mean that the value stagnates after a while before plummeting due to the wide supply.