Attention: This Meme Coin Could Be The Currency Of The Internet!

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Robinhood CEO Vlad TenevIn a recent tweet, he shared his thoughts on whether the meme coin Dogecoin (DOGE) is really the future currency of the internet and people. Tenev stated what he thought it would take for a currency like DOGE to truly become the currency of the internet, from the moment Robinhood listed Dogecoin (DOGE) on its platform.

According to the CEO, he stated that DOGE should primarily have almost non-existent transaction fees. Tenev also underlined that this is almost about to happen. After the 1.14.5 update released in November last year, typical transaction fees on the Robinhood platform are set at $0.003, compared to the 1-3% commission charged by major networks.

Second, the block time (the time it takes for successive blocks to be added to the chain and a transaction verified) should be fairly short. It should be short enough so that the transaction can be recorded sooner than in the next block, or even short enough to be able to pay out somewhere.

Tenev shouldn’t be developing so quickly, though, with miners creating too many competing chains and spending too much energy to reach consensus. The current block time for the meme coin DOGE is 1 minute. For payments, this block time should be around 10 seconds, given the time it takes to complete the transaction, for example with a debit card.

meme coin Dogecoin (DOGE)With a block size of 1MB and a block time of 1 minute, it is capable of processing approximately 40 transactions per second (tps).

dogecoin

Visa’s network is designed to theoretically accommodate 65,000 tps. It looks like Dogecoin has to massively beat Visa, which requires a 10000x increase in business volume. Fortunately, increasing the block size limit, blockchain technology is no more than a simple solution.

In the near future, moving to the 1GB (and later 10GB) block size limit will provide all the output a global currency would require. Tenev also claimed that Layer-2 solutions are not necessary to overcome this problem.

Dogecoin Review

According to Tenev, critics feel that increasing the block size could allow hobbyists to run a full node even on a Raspberry Pi at home. Confident that 10GB will require more advanced technology to be processed at 10-minute intervals, Tenev thinks this is a reasonable case.

Another criticism of Dogecoin is that, unlike Bitcoin, which has a limited amount (21 million), it is inflationary and actually has an unlimited supply. Each year, over 5 billion DOGEs are added to the existing supply of more than 132 billion. Mathematically calculated, this reflects the current inflation rate of 5%, which is even less than the US dollar.

Also, due to constant subtraction, inflation declines over time and has the potential to drop below 2% in a few decades.

According to Tenev, Dogecoin developers should only concentrate on one thing right now, which is to develop a good procedure to gradually increase the block size limit.

Tenev’s Tweet features Dogecoin founder Billy Markus, as well as Dogecoin advocate and billionaire Elon MuskIt also caught his attention.

Musk shared his reply, “Like I said,” implying that he has been a supporter of Dogecoin becoming the currency of the internet for a while.

Musk also shared the following response regarding increasing the block size:

“..block size and duration must keep up with the rest of the Internet.”

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.


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