Can Dogecoin become the future currency of the internet? Robinhood’s CEO gives insight.
As Dogecoin enthusiasts continue to describe the meme coin as the currency of the internet, Vladimir Tenev, CEO and co-founder of Robinhood markets, disclosed recently that he is wondering what it would take for DOGE to achieve that goal.
According to Tenev’s analysis, Dogecoin is far from achieving the goal of becoming the internet currency due to some technical issues currently facing the 12th-largest cryptocurrency.
Can #Doge truly be the future currency of the Internet and the people? As we added the ability to send/receive DOGE on Robinhood, I’ve been thinking about what that would take.
— VLAD (@vladtenev) April 14, 2022
Transaction Fees Reduction
Tenev noted that making Dogecoin transactions cheap and fast is a significant step to taking the cryptocurrency closer to becoming the currency of the internet and the people.
While he acknowledged that the recent upgrade, introduced in November 2021 by DOGE developers, had contributed significantly to reducing the network’s transaction fees, he still thinks more efforts need to be made in that regard to make fees to be “vanishingly small ultimately.”
Fast Transactions
Tenev said DOGE’s block time should be faster in order to see the cryptocurrency rival top payment networks like Visa.
However, it should not be faster to the point that it causes a problem of energy wastage.
Comparing DOGE transaction times with Visa, Tenev said while the former’s current block time enables it to perform 40 transactions per second (TPS), the latter can theoretically handle 65,000 TPS.
He thinks the issue could be easily resolved if the Dogecoin developers increase the network’s block size to at least 1GB and 10 GB in the near future.
Furthermore, Tenev suggested that Dogecoin needs to have a fixed total supply, to become the future currency.
“Another criticism of Doge is that it’s inflationary and the supply is infinite, unlike Bitcoin’s finite supply of 21M coins. ~5B new DOGE are created every year, and the current supply is about 132B. This results in a current inflation rate of <5% – less than USD!” Tenev adds.
Another criticism of Doge is that it’s inflationary and the supply is infinite, as opposed to Bitcoin’s finite supply of 21M coins. ~5B new Doge are created every year, and the current supply is about 132B. This results in a current inflation rate of <5% – less than USD!
— VLAD (@vladtenev) April 14, 2022
He concluded by urging Dogecoin developers to come up with a perfect solution to increase the network’s block size limit over time.
Reactions to Tenev’s Opinion
The development has sparked mixed reactions among Dogecoin enthusiasts, who took the time to comment on the lengthy thread.
Dogecoin pseudonymous founder Shibetoshi Nakamoto, in his response to the post, said Tenev’s thread is a good read.
this thread good https://t.co/6Pr0JHGuGi
— Shibetoshi Nakamoto (@BillyM2k) April 14, 2022
Elon Musk responded to Shibetoshi Nakamoto’s comment, the CEO and founder of Tesla, who noted that: “As I was saying.”
As I was saying …
— Elon Musk (@elonmusk) April 14, 2022
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