Dogecoin can become Future Currency: Says Robinhood CEO

Yuvi
Yuvi
4 Min Read

Vlad Tenev, Chief Executive Officer of Robinhood, outlined how the first-ever memecoin (Dogecoin) could become “the future currency of the Internet and the people.” Unlike many others that label DOGE as an inflationary asset because of its infinite supply, the executive argued that its inflation rate would actually decline in time.

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The Robinhood executive also says that the block time should be reduced to just ten seconds. In such a way, Dogecoin would be able to compete with Visa and other card networks. However, Tenev also believes that the block time shouldn’t be too fast so that miners wouldn’t have to waste too much energy on establishing consensus.

Tenev has proposed increasing Dogecoin’s block size to 10 gigabytes (GB), which would make it possible for the Bitcoin parody to handle a high number of transactions. One of the key arguments against increasing the block size is that it would inevitably result in a higher degree of centralization since one would be required to operate expensive hardware in order to run a full node. Tenev, however, believes that it would be a reasonable trade-off, seemingly echoing Bitcoin SV supporters.

Dogecoin can become Future Currency
Dogecoin can become Future Currency

How Dogecoin Could Become Currency of the Internet? Robinhood CEO Explains

Despite the competitive fees, Tenev says Dogecoin’s speed still leaves much to be desired.

“Doge’s current block time is 1 minute,” he tweeted. “This is a bit on the long side for payments – a ten-second block time would be more appropriate as it would be less than the typical time spent completing a debit card transaction.”

With a 1-minute blockchain and a 1-megabyte block size, Dogecoin can currently process roughly 40 transactions per second (TPS). Though this is much faster than Bitcoin and Ethereum, it pales in comparison to traditional rails.

Twitter: @vladtenev

The meme token’s market capitalization is approximately $19.5 billion, much lower than bitcoin’s, which is approaching $769 billion.

One of the most prominent proponents of dogecoin is Tesla CEO Elon Musk, who has invested in meme token and allows customers to pay for merchandise on the electric car maker’s website using dogecoin.

Musk, who made a bid this week to purchase Twitter for $43 billion, has also suggested that the social media company should integrate dogecoin into its platform.

Elon Musk
Elon Musk

The Robinhood CEO also criticized Dogecoin for being inflationary and having infinite supply. Unlike DOGE, Bitcoin has a limited supply of 21 million coins. With a current supply of around 132 billion, 5 billion new DOGE are created annually. In conclusion, Tenev urged Dogecoin developers to increase the crypto’s block size limit.

The thread by the Robinhood executive came hours after Dogecoin creator Jackson Palmer issued a statement to attack Musk’s Twitter offering. Palmer said Musk is “forcing one of the largest public social media platforms” to go private.

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Co-founder of Xryptonation.com, Senior Author, Editor, Blockchain Expert.
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