Elon Musk’s Favorite Memecoin: Dogecoin Finds Niche In Retail Payments

In an unexpected twist, Dogecoin (DOGE), originally created as a parody of cryptocurrencies, has emerged as a viable payment option for businesses across the United States.

A recent Bloomberg report highlights establishments like Williamsburg Pizza in New York and University Sports Grill in Tempe, Arizona, that accept the token for their products, from pizza to beer and even baked potatoes.

Retailers Embrace Dogecoin As A Practical Payment

Despite being viewed as a joke since its inception 11 years ago, DOGE has gained popularity among businesses looking to incorporate cryptocurrency into real-world transactions, largely attributed to the speed and low transaction fees associated with the token. 

Currently, the average transaction cost is around 0.07 DOGE—less than a penny—while Bitcoin transactions can cost approximately 79 cents, according to BitInfoCharts. Speaking to Bloomberg, Aaron McCann, co-founder of Williamsburg Pizza, said: 

Dogecoin is the only proof-of-work cryptocurrency with transaction times fast enough and fees low enough to be practical for merchants like me. 

Although DOGE payments account for about 1% of the restaurant’s gross sales, McCann is actively working to increase its use. After years of trying to find a way to accept cryptocurrency, he developed DogeExpress, a payment processor dedicated to Dogecoin, which he has implemented at several retailers.

Interestingly, DOGE is also finding utility in the remittance market. Traditionally, sending cash internationally involves high fees—often as much as 7%.

In contrast, DOGE transactions are typically completed in about one minute, making them more efficient than Bitcoin, which can take 10 minutes to an hour for transaction validation. 

High Volatility And Security Concerns

Despite its advantages, Bloomberg points out that Dogecoin is not without its drawbacks. It is considered less secure than BTC, and unlike Bitcoin, which has a limited supply, Dogecoin has no limit on circulation, making it less attractive for long-term holding. 

DOGE’s volatility is also notable, with its historical volatility nearly double that of Bitcoin. Yet, many believe its price movements have been more favorable overall, with significant upward trends observed over the years.

Kevin Nohr, owner of University Sports Grill, began accepting Dogecoin a month ago and has completed around 20 transactions. He appreciates the loyalty and support of the community, noting, “For DOGE to still be in this space means a lot for the DOGE community.”

Elon Musk, the most prominent supporter of Dogecoin, has hinted at reinstating the option to pay for Tesla merchandise with Dogecoin, after it was removed earlier this year. Musk’s ongoing engagement with Dogecoin-themed accounts on social media further fuels interest in the token.

As discussions surrounding cryptocurrency regulation continue, Musk has even suggested leading a new Department of Government Efficiency (DOGE) if Donald Trump returns to the White House—a move that could further legitimize Dogecoin in the eyes of the public.

For businesses like University Sports Grill, the goal is to increase Dogecoin’s share of overall revenue through grassroots marketing efforts. “With a little bit more advertising and word of mouth, we could probably end up doing 10% of our overall revenue a month in Dogecoin,” Nohr said.

DOGE, currently ranked 9th among the largest cryptocurrencies on the market, is trading at $0.1048, posting losses of 3.5% and 4.4% over the past 24 and seven days, respectively.

Featured image from DALL-E, chart from TradingView.com