Dogecoin (DOGE) and its use in real payments
By 2024, Dogecoin (DOGE), a memcoin created as a joke, had become a serious player used by thousands of online payment merchants around the world.
Advantages of using Dogecoin as a means of payment
Among decentralized blockchain systems, Dogecoin is one of the most suitable for making payments because it has many advantages over other networks.
The first such advantage is the high transaction speed and low fees. On average, the Dogecoin network commission is $0.05, and the transaction completion time is up to one minute. In rare cases with a high load on the blockchain network, the confirmation time and cost of transactions may increase, but this is a feature of all decentralized protocols.
Also, when using cryptocurrency payments in DOGE, the costs associated with currency conversion, which can reach and even exceed 10% of the amount, are reduced. To understand how high conversion costs can be, comparing the exchange rate for buying/selling currencies in banks with the exchange rate is enough.
Another advantage is the high reliability and security of the Dogecoin blockchain. Like Bitcoin, the Dogecoin network operates based on the Proof-of-Work (PoW) consensus mechanism, which experts consider to be more secure and decentralized than the currently popular Proof-of-Stake (PoS) mechanism.
For example, the BNB Smart Chain is heavily centralized because most of the validators are under Binance's control. In addition, many PoS blockchains are vulnerable to sandwich attacks. Even the Ethereum network, the largest altcoin, has been repeatedly attacked by MEV bots, but the Dogecoin network cannot be subjected to such attacks, making it more suitable for payments.
Another strong point of Dogecoin cryptocurrency is the possibility of direct transfers without providers charging additional fees for their services. Merchants can thus save on intermediaries' commissions and reduce consumers' costs of goods and services.
An equally important advantage of Dogecoin is its high liquidity. This means that users will have no problems exchanging this asset in the markets, and the exchange rate will not have such intense volatility compared to less capitalized assets. As of January 2025, Dogecoin has a capitalization of $54.2 billion, and according to this indicator, it ranks 7th in the overall ranking of cryptocurrencies.
Finally, Dogecoin cryptocurrency allows you to bypass restrictions, for example, if a particular payment method is unavailable, increasing the privacy of online payments. Dogecoin is the leading memcoin — it can be purchased on almost any exchange. In storing DOGE cryptocurrency, users are not dependent on specific cryptocurrency wallets and can utilize multiple options, carrying a seed phrase to access their digital assets.
Dogecoin in real payments
Tourism
Dogecoin was the first cryptocurrency SoftBank began accepting for travel bookings on its GetYourGuide platform. The Swiss Amber Hotel Dogecoin has become the only cryptocurrency the company accepts for payment.
Many travel services and airlines, such as Travala, Softbank, Destinia, AirBaltic, Alternative Airlines, and CheapAir, now accept Dogecoin. Some airlines also allow passengers to pay for tickets using cryptocurrency.
Online shopping
From food and drinks to electronics and other non-food items, everything can already be purchased with Dogecoin at stores like BurgerBear, Takeaway.com, Bitgear, Newegg, and even Shopify, which has over 120,000 retailers worldwide. Some companies, such as Crypto Emporium, allow you to pay for expensive goods, from cars to real estate, in Dogecoin.
In 2024, Tesla will start accepting DOGE cryptocurrency for payment, though only to purchase branded merchandise. However, the company's founder, Elon Musk, has repeatedly hinted that he admits to the possibility of accepting Dogecoin when buying Tesla electric cars.
Standalone payment services like BitPay allow private merchants and stores to easily connect cryptocurrency payments. Another payment service, X Money, is scheduled to launch in 2025 and integrates Dogecoin cryptocurrency payments.
Philanthropy and funding
Over the past few years, the number of charitable organizations accepting donations in DOGE cryptocurrency has increased significantly. These organizations include The Water Project, Save the Children, Mozilla Foundation, Food4Life Global, American Cancer Society, and PAWS Chicago.
For example, The Water Project accepts donations in Dogecoin to provide fresh water to South African regions, and the American Cancer Society accepts donations to access life-saving aid and resources.
Not only can cryptocurrencies be used to send donations to charity but also to fund projects or events. For example, in 2014, crypto-enthusiasts funded the Jamaican bobsled team's trip to the Sochi Olympics. In just two days, the athletes raised $120,000, some of which was spent on the cryptocurrency DOGE.
An equally prominent example of funding was Geometric Energy Corporation's DOGE-1 space mission, which aims to launch a satellite to orbit the moon for research. DOGE-1 is planned as part of a mission from SpaceX and paid for with the cryptocurrency Dogecoin.
International payments and transfers
Dogecoin cryptocurrency reduces the cost of cross-border transfers, which are the most expensive when using fiat currencies. If a user transfers DOGE cryptocurrency, it does not matter whether he sends assets to his neighbor or a resident of another country — in both cases, the Dogecoin network fee will be the same and significantly lower compared to fiat transactions.
Some international payment systems, such as Stripe, already support Dogecoin cryptocurrency for transfers and online payments. Even messengers are starting to implement crypto payments: a prime example is Telegram, which has integrated a digital wallet that allows you to send cryptocurrency to other users by nickname.
Entertainment
The entertainment sector holds a special place for Dogecoin. GameStop, a prominent American video game retailer with over 3,000 stores in the United States, Canada, Europe, and several other regions, began accepting Dogecoin payments in 2021. Online petitions launched by crypto-enthusiasts that have garnered thousands of signatures have played no small part.
Another example is the streaming platform Twitch, which allows you to send donations to content authors in Dogecoin cryptocurrency.