Dogecoin (CCC:DOGE-USD) has been in the news lately as more companies seem to be willing to work with the cryptocurrency as a form of payment for their products. I’m not the first to point out that the token was started as a joke, but it’s important to remember that it is now being taken seriously by many.
This could not come at a better time for the crypto price. It currently trades a bit below 25 cents, and it’s ranked the tenth largest crypto with a $32 billion market cap.
But it is down from a recent peak of 35 cents on Aug. 16. And earlier in the year, it reached a fever peak at nearly 74 cents per token on May 8.
However, year-to-date (YTD) it’s still up dramatically from 0.5685 cents on Dec. 31. That puts it up nearly 42 times for 2021. That is one of the best crypto performances for the YTD.
AMC Accepts Dogecoin
On Oct. 6, AMC Entertainment (NYSE:AMC) CEO Adam Aron, who runs the largest theater chain in the world, said the firm would now accept Dogecoin. It can be used for digital gift cards (up to $200 per day). He used Twitter (NYSE:TWTR) to make the announcement.
“Huge news Dogecoin fans! As we work to accept online crypto payments, now you can buy @AMCTheatres digital gift cards (up to $200 per day) with Dogecoin and other cryptocurrency using a BitPay Wallet.”
That is an interesting announcement. AMC will start accepting cryptocurrency as a payment option by the end of the year, in the first such move among theater chains. It is also certainly one of the largest companies to date that has said it would accept Dogecoin. And it could potentially lead to other large companies following suit.
Decrypt magazine points out that the company BitPay is one of the largest crypto payment service providers in the world. AMC will use BitPay to also accept other cryptos such as Bitcoin (CCC:BTC-USD), Ethereum (CCC:ETH-USD), Litecoin (CCC:LTC-USD) and Bitcoin Cash (CCC:BCH-USD).
Adam Aron found that there was an overwhelming response to his inquiry on Twitter on whether to include Dogecoin. His poll received over 140,000 votes and over 6 million views, with celebrity Doge fanatics Elon Musk and Mark Cuban both responding positively to the news. He also said the viral tweet was his “most retweeted, most replied, most liked tweet ever.”
Other Companies Accepting Dogecoin
Another maverick CEO has also accepted Dogecoin as a form of payment. Mark Cuban’s NBA team, the Dallas Mavericks, had received 112,000 DOGE tokens as of April since starting to accept Dogecoin as a form of payment.
One article, “Are Online Businesses Ready to Start Accepting Dogecoin?” indicates that there were 1,300 businesses accepting Dogecoin as of May. It also lists a number of the largest companies that accept Dogecoin.
In addition, Cryptwerk, a website highlighting businesses that accept cryptocurrency, highlights over 1,700 companies that accept Dogecoin along with reviews of those companies.
What To Do With Dogecoin
The Adam Aron Twitter episode could end up having a multiplier effect, a wave that could push other major companies to follow suit.
This will also have a major effect on the Dogecoin price. Sometime in the future, Dogecoin fans may look back at this decision and the fact that so many people wanted the crypto as an inflection point. An increase in companies accepting it will push up the demand for the currency.
As a result, crypto investors might want to take a position in Dogecoin, while keeping in mind that it has been extremely volatile and speculative.
On the date of publication, Mark R. Hake held a long position in Bitcoin (BTC-USD), Dogecoin (DOGE-USD) and Ethereum (ETH-USD), but not in any other security mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.