Dogecoin is on the move. Peter Brandt, a well-known trader, just posted a chart showing that DOGE is breaking out of a downward channel it’s been in for about six months. This could mean big things for its price and its use as a currency, especially in places like Latin America where cross-border payments can be a hassle.
The Current Situation
Brandt's chart shows that after spending two years in a horizontal channel (between $0.05 and $0.1181), Dogecoin is now attempting to break out. And guess what? It’s up about 15% in the last 24 hours. Bitcoin also had a little surge, which probably helped.
Crypto analyst Ali Martinez also chimed in, saying that over 62,000 wallets hold more than 36 billion DOGE and if it stays above the $0.111 level, we might be looking at an even bigger rally ahead.
Why Dogecoin Might Work for Cross-Border Payments
Now let’s talk about why Dogecoin could actually be useful for small businesses trying to make payments across borders.
Advantages
First off, cryptocurrencies like Dogecoin have lower fees and faster transaction times compared to traditional methods. For small businesses in Latin America dealing with high fees from banks or payment processors, this could be a game changer.
Dogecoin doesn’t care about your border; it’s decentralized and doesn’t rely on any single country’s financial system. So if you’re in a place where your local currency isn’t doing so hot (hello hyperinflation!), having another option can really help.
The Infrastructure Challenge
Of course, using Dogecoin isn’t as simple as just saying “let’s use crypto.” Businesses need to set up systems to accept it. And while some big companies are already on board (looking at you Tesla), smaller firms will need to weigh the pros and cons first.
There’s also the issue of infrastructure; not every region has the same level of digital payment capabilities. But since Dogecoin transactions don’t rely on traditional banking systems, they might actually work better in areas with less robust financial infrastructure.
The Regulatory Landscape
Billy Markus, one of the co-founders of Dogecoin, recently made an interesting point: if Bitcoin is classified as a commodity by the SEC (which it is), then so should Dogecoin since it runs on Bitcoin's code.
If cryptocurrencies are classified as non-securities, then they fall under different regulatory bodies like the Commodity Futures Trading Commission (CFTC). This would clear up a lot of confusion and potentially boost investor confidence—something that could benefit all cryptos including DOGE.
Why Not Use Stablecoins?
Some people might argue that stablecoins are better for this purpose since they’re designed to maintain value. But here’s why I think they fall short:
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Inflationary Nature: Stablecoins are meant to be "stable." An inflationary asset like DOGE isn't going to cut it.
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Volatility: By definition cryptocurrencies are volatile; stablecoins mitigate this.
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Lack of Pegging: Stablecoins are pegged to fiat currencies; DOGE has no such safety net.
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Economic Context: In countries facing hyperinflation, stablecoins can offer protection against local currency collapse—DOGE would not serve this purpose effectively.
Summary: Is There Potential?
Dogecoin's recent breakout could signal something bigger—not just for its price but also for its utility as a cross-border payment method. While there are challenges ahead—like volatility and regulatory ambiguity—the potential benefits seem worth considering especially for small businesses caught in high-fee payment systems.
So yeah… maybe there’s something here?
