Dogecoin (DOGE) has recently gained a lot of attention as it has become more widely adopted by investors. You can get more details at this link. We’ve seen a lot of people asking whether countries will accept Dogecoin as a legal tender, so I decided to write this post to clear up some of those questions.
Will Countries Accept Dogecoin as a Legal Tender?
The short answer is yes. But there are some caveats. First and foremost, Dogecoin is already accepted as payment in many places worldwide and will continue to be accepted as such. However, this acceptance has not been codified by law into a formal legal framework that allows merchants and consumers to accept Dogecoin as payment without fear of prosecution. Without such legislation, merchants accepting Dogecoin are technically engaging in unlawful transactions.
For example, if Bob buys a sandwich at Subway using his Dogecoins and then tries to get change back from the sandwich shop owner in USD, he may be charged with fraud or deception based on where they live, and what their local laws say about cryptocurrencies.
Dogecoin has since seen widespread adoption and is now accepted by many online service providers and physical stores worldwide. Some charities are even accepting it.
Millennials are driving its popularity, especially those who are tech-savvy or younger investors who want to get into crypto but don’t want to spend money on expensive hardware like ASIC miners.
Dogecoin (DOGE) has earned a reputation for being the meme coin of the crypto world. Dogecoin has a market capitalization of $2.38 billion as of January 2019, according to CoinMarketCap data. DOGE is becoming increasingly popular among Millennials and younger investors.
As a term of reference, the Millennial generation is defined as those born between 1980 and 2000. While not all Millennials are Dogecoin users or investors, DOGE has grown in popularity among this demographic over the past few years.
In a survey, Millennials were asked which type of cryptocurrency they would be most likely to buy if given USD 10K today. The results were:
- Bitcoin – 32%
- Ethereum – 16%
- Litecoin – 9%
- Dash – 8%
Millennials were also asked what their projected annual return was from purchasing each cryptocurrency on their list of options given current prices. According to data from Coinmarketcap, Dogecoin has a market capitalization of $2.38 billion, which ranks it number 16 in the list of most valuable cryptocurrencies by market cap. This is a huge increase from December 2017, when it had just $316 million and was ranked 25th place on the list.
This growth can be attributed to increased interest in cryptocurrencies and an increase in new users joining the community. It’s also likely that some people who invested in Bitcoin earlier may have decided to move their money into other altcoins like DOGE. They would be less volatile than BTC and produce better returns on investment when cashed out at a later date.
DOGE is commonly used as a tipping currency to reward fellow users for creating or sharing quality content online or completing certain tasks on specific platforms. For example, the Dogecoin platform has an inbuilt tipping system that allows users to send each other DOGE tokens as a reward for interesting posts and comments. It is believed that Dogecoin’s recent rise has been catalyzed by Elon Musk’s pro-Dogecoin tweets (or Dogetweets), encouraging his followers to invest in the cryptocurrency.
It set the previous record high of 30 cents in May 2021 after Elon Musk hosted Saturday Night Live and referred to Dogecoin as a “hustle.” This caused a spike in the price of Dogecoin, which has since declined. The billionaire’s support of the meme-based cryptocurrency has drawn attention to its status within the non-professional investor space and sent its price skyrocketing over the last year.
Dogecoin’s meteoric rise has been a boon for the crypto community as it shows that this is not just a fad or niche industry but one that will continue to grow and evolve. While Dogecoin may never be accepted as a legal tender in any country, its popularity among investors worldwide suggests that it will likely remain an important part of our financial system for years to come.