AMC (AMC) CEO Adam Aron dropped a bizarre Tweet indicating that Dogecoin could be accepted at AMC movie theaters.
Tesla (CEO) and Troll King Elon Musk Tweeted later that day that it’s “Super important for Doge fees to drop to make things like buying movie tix viable.”
So is Dogecoin a good investment? Could it become a real transactional cryptocurrency?
This is very tricky.
We’re here to make the case that Dogecoin could be a great transactional currency… and a terrible investment. Of course, let’s fully acknowledge the fact that Dogecoin is downright crazy and could go to zero. Seriously, Dogecoin is as risky as it gets, and you could lose all your money if you even look at it trong.
Dogecoin As a Transactional Currency
Yes, AMC should accept Dogecoin as a transactional currency.
They’ll likely have to overcharge for tickets to make up for the transaction fees, but it would be worth it for one reason: publicity.
Heck, people who own Dogecoin just might go to the movies for a simple reason… there’s no other place to spend Dogecoin!
But Elon Musk is correct that the fees must come down. According to Yahoo! Finance, “these fees charge 1 DOGE per kilobyte of transaction data, which translates to about 2.16 DOGE (US$0.24) per average transaction.” The fees are expected to drop with technology upgrades, but it hasn’t happened yet.
If and when the fees come down, Dogecoin might become a transactional currency with companies like AMC simply because of the novelty factor.
And it wouldn’t be surprising to see other meme stock companies like GameStop (GME) jump in the Dogecoin game.
The Problem With Investing in Dogecoin
Bitcoin has a maximum supply of 21 million coins.
Dogecoin has a theoretically unlimited supply and miners produce about 10,000 coins per minute.
Imagine of Apple (AAPL) issued new shares every day. You’d probably throw up.
And that is the challenge with Dogecoin. For the price to really go up, people would have to buy so aggressively that they’d overwhelm the supply.
So developers have to implement a cap.
If that happens, odds are Dogecoin will skyrocket. Of course… that’s a big if.