The crypto currency Dogecoin (DOGE) declined to $0.0024 against the US dollar in the first few days of August 2018. The declining value makes Dogecoin ideal for online payments compared to other cryptocurrencies. Just like people spend dollars as its value remains same, investors would rather spend a currency whose value is declining or same, instead of hoarding it. Many of the investors and users of Bitcoin are likely to hoard the cryptocurrency. This is because the value of their investment may increase rapidly in the future. Additionally, the transaction cost for making payment using Bitcoin remains high. The time taken for completing a Bitcoin transaction is also longer.
Dogecoin is a popular cryptocurrency with symbol DOGE which has the Japanese dog Shiba Inu as its mascot. It is a proof of work coin which uses the hashing algorithm Scrypt. It was primarily developed for making low value transactions online. Hence, the transaction charges for DOGE remain low. Dogecoin payment transaction time remains less than Bitcoin, because of the robust back-end software. This is unlike Bitcoin and Ethereum. The low value of DOGE makes it easier for a new user to earn Dogecoin, by generating useful content, participating in faucets and forums.
Robinhood Includes Dogecoin
The trading app Robinhood has included Dogecoin to the list of crypto currencies which are available for online trading in the last month. Robinhood is popular in the United States as it allows investors to trade in shares without charging any commission. The trading app was earlier offering the more popular cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). These currencies have high market capitalizations. Cryptocurrency exchanges like Coinbase, Poloinex, BTC Trade, and CoinExchange allow users to trade popular digital currencies for DOGE. Traders and users exchange these digital currencies for US dollars if they wish.
Advantages Of Dogecoin
Lower volumes of trading in DOGE are reported at coin exchanges compared to other currencies. The high transaction speed and low transaction costs make it more suitable for making low value payment. Robinhood probably included DOGE for digital currency trading for investors due to lower expenses. The market capitalization of Dogecoin is more than $300 million as of August 2018.
So while the exchange rate of DOGE may remain low, it is likely to become one of the more widely used digital currencies for trading and online transactions.