Billionaire Mark Cuban is convinced that meme cryptocurrency Dogecoin could potentially morph into a viable currency if it gains enough utility, according to a series of his recent tweets:
Meme coins like Doge only work if they gain utility and users use them for that utility.
The Dallas Mavericks, Cuban’s NBA team, began accepting Dogecoin in early March, paving the way for its broader merchant adoption.
Since then, multiple major companies, including online electronics store Newegg started accepting the joke cryptocurrency.
As reported by U.Today, it now accounts for 10 percent of all BitPay transactions.
Dogecoin’s infinite supply
Dogecoin has an inflationary supply with roughly 5.2 million new coins entering into circulation every year.
This is believed to be one of the cryptocurrency’s main fundamental risks. The more coins enter the market, the harder it will be to sustain current price levels.
Cuban, however, sees Dogecoin’s infinite supply as its strength since it can gain traction as a digital currency instead of a store of value:
Any asset that has inflation by definition is “infinite” but that doesn’t diminish it. It changes the utility from a store of value to potentially a digital currency.