Mark Cuban, the billionaire owner of the Dallas Mavericks NBA basketball team, recently revealed that he thinks Dogecoin was the potential “strongest” contender among digital currencies for widespread use as a medium of exchange.
He has expanded his bullish narrative on Dogecoin by adding that what people perceive to be Dogecoin’s weaknesses were rather its greatest strengths. In the tweet, Cuban noted that the fact that Dogecoin holders could best use the asset either by spending or by holding, as a way to speculate on its price appreciation, are very strong reasons for people to easily join the network as those two concepts were easy to understand for most.
“The point about DOGE that people miss is that DOGE’s imperfections and simplicity are it’s greatest strengths. You can only use it to do 2 things: Spend It or HODL It. Both are easy to understand. And it’s cheap to buy. Which makes it a community anyone can join and enjoy.”
These two points, plus the fact that the cryptocurrency is cheap, making it easy to invest in, he believes make the Dogecoin community a space “anyone can join and enjoy.”
Albeit, it remains to be seen whether his argument is accurate as he has been engaged by the crypto-community who have pointed out the holes in the argument.
In the opinion of most Dogecoin proponents, the meme coin is the world currency of the future, and that they’re early adopters.
Despite this belief, Dogecoin has been shown to have no competitive advantage. It is common knowledge that the coin was started as a joke and was intended to be a bogus-Bitcoin, which is why most Dogecoin fans compare its transaction fees to that of Bitcoin and Ethereum.
Meanwhile, even in the metric of having lower transaction fees, other cryptocurrencies outperformed Doge, including Ripple, IOTA, Bitcoin Cash, Bitcoin SV, Ethereum Classic, and Nano.
Another often cited advantage over Bitcoin and Ethereum that Dogecoin proponents use, is its faster transaction settlement time. In this also, Dogecoin has no advantage over cryptocurrency Stellar Lumens or traditional remittance giant, Visa. Nor does it have a use as an inflation hedge with its high volatility and wired in annual inflation of about 4%.
Cuban has however taken his optimism a step farther by adding that, the difference for Doge, was the community that has adopted it. Replying to a tweet asking what made Doge different from the thousands of other cryptocurrencies that were useful for only spending or speculating on, he stated that the community was what made Doge work, just as the community was what also made Bitcoin work.
Strikingly, Cuban’s sentiment is also shared by Elon Musk, another billionaire Dogecoin proponent. Musk, who has been a strong backer of the meme coin, considers it to be an “unstoppable financial vehicle that is going to take over the world.”
Musk, who calls himself the “Dogefather,” feels strongly that the community’s not taking the coin seriously, the memes (dog memes), and its simplicity are why he thinks that Doge, the most ironic and unlikely contender, could emerge as the most successful digital currency. Although, he has also jokingly called it a hustle.