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Dogecoin Is Set to Rebound After Major Merchants Accept It As Payment

So far this year Dogecoin (DOGE-USD) has dropped over 12%. DOGE crypto ended 2021 at 17.19 cents, but as of Feb. 10, it was at 15.1 cents per token. But this is after it bounced off a low price of 12.85 cents on Jan. 22.

Source: Zarko Prusa…

So far this year Dogecoin (DOGE-USD) has dropped over 12%. DOGE crypto ended 2021 at 17.19 cents, but as of Feb. 10, it was at 15.1 cents per token. But this is after it bounced off a low price of 12.85 cents on Jan. 22.

Source: Zarko Prusac / Shutterstock.com

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So, Dogecoin is rebounding off a recent low after 4 months of drifting down from its recent peak price of 30 cents as of Oct. 27. It’s basically off 50% from 30 cents down to 15 cents.

But now the cryptocurrency may finally be getting some footing, or at least that is what its proponents hope.

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Significant Merchants Starting to Accept Dogecoin

For one, Tesla (NASDAQ:TSLA) will soon accept Dogecoin for certain items in its online store, as of January 14, 2022, according to a tweet by Elon Musk. The company even has an instruction page on its site on how to proceed with Doge crypto payments.

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For example, purchases with Dogecoin must be concluded within a certain time frame, once the transaction has begun. The transaction can also take up to six hours before the payment is confirmed.

Bloomberg recently reported that a co-founder of Dogecoin, Billy Markus, tweeted a picture of a Dogecoin gift in the Tesla store. It is a Cyberwhistle in the form of a Cybertruck model, available for a price of 300 Dogecoin.

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In addition, AMC Entertainment (NYSE:AMC) will soon start accepting Dogecoin for some of its online store items. The system to allow this will be up and running by the end of Q1 2022, according to the CEO, Adam Aron.

The world’s largest theater chain will also accept Shiba Inu (SHIB-USD) along with Dogecoin. In a recent tweet, he said that the month of March is the most likely month when the purchase ability on the website and app store will be implemented.

A list of four other major retailers accepting Dogecoin is on Sofi Learn. These include The Dallas Mavericks and AirBaltic (a European airline). In addition, it includes Newegg (NASDAQ:NEGG) (an online electronics store) and The Kessler Collection (a luxury hotel chain). There are other sites with lists of companies, including this one at Dogecoins.com, although none of these has been independently verified.

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Dogecoin Foundation Slowly Getting Off the Ground

Recently, on Jan. 22, the newly formed Dogecoin Foundation, which purports to act as a sponsoring organization for Doge crypto, held an introductory video chat.

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In August 2021 Decrypt.co online magazine reported that the Foundation headquarters was to be re-established in Liechtenstein. So far there is no follow-up report on whether that had been implemented. Liechtenstein is seen as a much more crypto-friendly state than the U.S., where the Foundation had originally been set up.

Moreover, Elon Musk had been seen as instrumental through several of his “representatives” being on the Foundation board.

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Where This Leaves Doge Crypto Now

Once the tipping point of a number of large and new merchants like Tesla and AMC starts to coagulate, Dogecoin could take off as a valid crypto means of payment. Meanwhile, it doesn’t hurt that major businessmen like Mark Cuban, Elon Musk and Adam Aron are all pushing for their companies to accept Doge crypto.

At some point, the tipping point could be reached where it becomes normal for merchants to include Dogecoin along with other major cryptos like Bitcoin (BTC-USD).

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In the meantime, Doge crypto seems to be recuperating. It could be a good time for enterprising investors to take a spin on Dogecoin. Just keep in mind that this is a highly speculative cryptocurrency, and its price movements could be quite volatile over the next several months.

On the date of publication, Mark R. Hake did not hold any position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Mark Hake writes about personal finance on mrhake.medium.com and Newsbreak.com and runs the Total Yield Value Guide which you can review here.

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