Dogecoin could become the currency of the internet, says Robinhood CEO

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The Robinhood boss is optimistic about dogecoin’s prospects – offering the token itself has the potential to become the “future internet currency” if developers take a key step to improve its functionality.

Robin Hood,
-4.29%
CEO Vlad Tenev detailed the hypothesis in a long twitter thread after its retail investment platform added functionality allowing users to buy and sell dogecoin.

Tenev rated dogecoin DOGEUSD,
-2.15%
already has “infinitely small” transaction fees compared to traditional credit card network fees – an advantage “over the 1-3% network fees that major card networks charge”.

But to compete with Visa V,
-0.23%
and other mainstream payment processors, Tenev said dogecoin developers should increase the crypto token’s “block time,” or the process by which it verifies transactions.

Tenev said dogecoin’s current block time is “a bit long for payments”, with the platform capable of around 40 transactions per second (tps).

“For comparison, Visa’s network can theoretically handle 65,000 tps,” Tenev said. “Doge should be able to significantly outperform Visa, which means increasing throughput by at least 10,000 times. Luckily, this is easily fixed simply by increasing the block size limit.

The Robinhood chief also brushed off concerns that dogecoin is fueling inflation as it has an ever-expanding supply of tokens – saying the currency’s inflation rate is actually lower than that of the US dollar at the current time.

Dogecoin has grown in popularity alongside other top cryptocurrencies such as bitcoin and ether in recent years.

A single dogecoin was worth around $0.15 on Friday afternoon – with prices hovering near that point for much of 2022, according to Coinbase COIN,
-4.85%.

The market capitalization of the same token is around $19.5 billion, much lower than that of bitcoin, which is approaching $769 billion.

One of the most prominent proponents of dogecoin is Tesla TSLA,
-3.66%
CEO Elon Musk, who has invested in the meme token and allows customers to pay for goods on the electric car maker’s website using dogecoin.

Musk, who made an offer this week to buy Twitter for $43 billion, also suggested the social media company integrate dogecoin into its platform.

This article first appeared on NYPost.com

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