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Vlad Tenev, Chief Executive Officer of Robinhood, outlined how the first-ever memecoin (Dogecoin) could become “the future currency of the Internet and the people.” Unlike many others that label DOGE as an inflationary asset because of its infinite supply, the executive argued that its inflation rate would actually decline in time.
Can DOGE Emerge as the ‘People’s Currency’?
The American financial services company – Robinhood – and the popular memecoin – Dogecoin – started their interaction in 2018. Back then, the US-based firm listed the asset on its platform, allowing customers to deal with it.
Last year’s craze surrounding DOGE and its following price surge were beneficial to Robinhood. The organization revealed that the meme-inspired token accounted for 62% of its cryptocurrency income for Q2 of 2021.
Recently, Vlad Tenev – Robinhood’s CEO – pictured himself as a proponent of Dogecoin. He even outlined how the DOGE token could transform into “the future currency of the Internet and the people.”
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
To achieve such a status, the block time should be fast enough so the transaction can be recorded in the next block in “less time than it takes to pay at a point of sales terminal,” he opined. On the other hand, he stated that “it shouldn’t be so fast that miners start building up too many competing chains and waste excessive amounts of energy.”
Dogecoin’s current block time is 1 minute, which in his view, is not ideal. However, if the team drops that time frame to 10 seconds, DOGE has a chance to develop further:
“DOGE would need to be able to significantly outperform Visa, which entails increasing throughput by at least 10,000x. Fortunately, this is easy to solve simply by increasing the block size limit.”
Tenev touched upon Dogecoin’s infinite supply, too, which according to many experts, has an inflationary effect. Unlike those critics, Robinhood’s executive noted that the memecoin’s inflationary rate is not more than 5%, meaning less than the American dollar’s one. He argued that this would decline in time, estimating it to drop below 2%.
Robinhood Introduced Shiba Inu
Earlier this week, the company listed another memecoin on its trading platform – Shiba Inu. Commenting on the endeavor was Steve Quirk – Chief Brokerage Officer at Robinhood:
“We’re excited to add more choices for our customers as we work to make Robinhood the best place to invest in crypto. As a safety-first company, we have a rigorous framework in place to help us evaluate assets for listing, and we remain committed to providing a safe and educational crypto platform.”
The price of the so-called DOGE killer, SHIB, spiked by double-digits minutes after the news, reaching $0.000030. SHIB retraced by nearly 13% in the following days and is currently trading at $0.000026.
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