A few hours ago it emerged that Starbucks was going to start accepting bitcoin (BTC) from as early as November. However, the latest news are contradicting the earlier reports. It is emerging that the partnership is simply meant to allow crypto holders convert their bitcoins to dollars, in order to buy coffee.
Whatever the case, is bitcoin (BTC) really the best fit for a business like Starbucks, even if they were to start accepting cryptocurrencies directly? Going by the nature of bitcoin (BTC), there is a good chance that it is not the best for such a role. That’s because the cost of transacting in bitcoin is quite high, and the transaction times are a little bit too slow for everyday payments.
Besides, even if these issues were resolved, who would be willing to spend their bitcoin (BTC) on coffee, when they could wait and sell it, when it hits $100k or even a million at some point in the future? This alone makes it highly improbable that Bitcoin (BTC) would add any utility value to Starbucks, as a payment method.
However, there is one crypto that would fit pretty well as a payment method for a company like Starbucks, and that’s Dogecoin. Dogecoin (DOGE) has all the attributes that give it a perfect use-case for everyday payments, such as paying for coffee.
First, Dogecoin (DOGE) transactions are instant. This means that you can buy your coffee on the go, and the company receives the payment instantaneously. Instant transactions are what makes a crypto practical, otherwise, it would simply make sense for the payment to be made in fiat. The same goes for costs. Dogecoin transaction costs are so low that they are almost non-existent. That’s a huge incentive to spend coins in buying coffee, since it would be cheaper than using fiat, especially when the fiat payment is done using a credit/debit card.
However, the biggest reason why Dogecoin (DOGE) fits the bill is the user incentive to spend it. Dogecoin is by its nature meant to be spent. It is inflationary, and has always been marketed as a joke coin for transferring value over the internet. This means that most people holding Dogecoin have an incentive to spend it, rather than just HODL it in anticipation of some extra-ordinary gains in the future. The idea is that you can always spend it, and buy it later along, without losing much in value. It’s pretty much the same way people spend the dollar or any other fiat currency, without thinking about what it will be worth tomorrow, or the day after. The value comes in its usage, and it’s the same thing for Doge coin. This aspect to it goes well with the payment efficiency needs of a company like Starbucks.
All these are attributes that may not be obvious to such companies in the short-term, but will become more visible over time. That’s when the value of Dogecoin (DOGE) as a transactional currency will become clear for all to see, and its intrinsic value will blow through the roof.