Can Memecoin Cryptos Be Used as Real Currencies?

Paigambar Mohan Raj
Source: Crypto News

Memecoins are crypto tokens that pay homage to or are inspired by internet memes. Although hundreds of memecoins exist, Dogecoin (DOGE) and Shiba Inu (SHIB) are the most popular ones. DOGE is inspired by the popular “doge” dog meme, which was very popular in the mid-2010s. SHIB is also inspired by the same dog but uses the name of the breed instead.

Memecoins are usually very volatile. This is because they usually have a large supply and also because pop culture plays a significant role in their appeal. Dogecoin’s (DOGE) value soared after being promoted by Elon Musk and Mark Cuban. But prices fell once the hype died out. Memecoin design is another factor adding to its significant value fluctuations. In contrast to fiat money and most cryptos, memecoins often have an unlimited supply. This aspect makes them inflationary in nature. Shiba Inu (SHIB), which had a total supply of 1 quadrillion tokens at the beginning, is an exception.

Although the risk is high, memecoins still play a significant role in the crypto industry. However, many investors and fans often ask the question if memecoins can be used as a real currency. Let’s find out.

Can memecoin cryptos be used like real currencies?

As per users and fans, the decentralized nature of memecoins gives users greater control over their money. Additionally, the use of blockchain technology ensures that transactions are safely recorded on a decentralized ledger.

In the case of fiat money, governments and central banks take measures to maintain stability and keep inflation under control. They also ensure the stability of the overall financial system. Memecoins, on the other hand, lack governmental oversight. This increases the risks associated with them. Therefore, memecoins may pose challenges when used as a reliable medium of exchange or store of value. Moreover, memecoins are a volatile store of value. This can make it difficult for individuals and businesses to maintain effective budgets or to accept such tokens as payment.

Furthermore, not many avenues accept memecoin as a method of payment. Although DOGE has made significant inroads in that aspect. The popular dog-themed crypto memecoin is accepted by Tesla for its merchandise and may be accepted in Twitter’s upcoming payment feature.

How can memecoins make their way into mainstream payment methods?

Before Memecoins can make their way to conventional payment systems, they would need to see more utilization and acceptance. This would entail promoting the use of memecoins as a form of payment for products and services provided by businesses as well as giving users quick and safe options to convert memecoins into fiat currency. One potential solution is the development of payment platforms that can instantly convert meme tokens into fiat money at the point of sale.

Furthermore, by putting in place the right laws, the risks and dangers of meme tokens can be reduced. However, the way things are at the moment, it may not be viable to use memecoins as a legitimate method of payment. With that being said, there is the possibility that memecoins will see more use in the future when their downsides are better dealt with.