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Coinbase and the Doge Economy
In the world of crypto, Coinbase is a juggernaut.
The first publicly traded exchange boasts more than 60 million users and is valued at roughly $60 billion.
Coinbase has been a powerful ally to the DogeArmy since June, when it listed Dogecoin for trading.
Surprisingly, the Coinbase-Doge partnership hasn’t had much influence on the crypto space yet. But that could change quickly.
Let’s take a look at how Doge and Coinbase could soon take the global financial system by storm.
Doge Listing Fizzles?
The Coinbase listing of Dogecoin was one of the most hyped crypto events of the first half of 2021.
Coinbase listed Doge for trading in June, making the dog-meme crypto easy to buy and sell for 60+ million customers.
At time time, it looked like Coinbase had big plans for Doge, launching a $1.2 million Dogecoin giveaway to celebrate the news.
However, from Doge's perspective, the listing was a non-event, with price briefly spiking before resuming its months-long downtrend.
At the time it was reasonable to wonder how much Coinbase had to offer Doge: if Coinbase was really going to boost adoption, shouldn't Doge's price have increased?
Little has changed on the surface since June. But in the background, Coinbase has been quietly building the infrastructure to become a crypto-native bank.
It's now possible to receive your paycheck in Dogecoin on Coinbase and seamlessly spend it at thousands of merchants across the country, eliminating the need for the legacy banking system.
Here's how it works.
This week, Coinbase announced a direct deposit feature that would allow people to convert their paychecks into crypto automatically.
In a blog post, Coinbase Director of Product Prakash Hariramani said users will pay zero transaction fees when they convert their paychecks into crypto, calling the arrangement "the future of payroll."
The Coinbase App integrates directly with payroll companies and employers.
Coinbase users can get paid in over 100 cryptocurrencies, including Doge.
Through the app, users can customize how much of each cryptocurrency they'll get paid in, including dollar-pegged stablecoins like USDC.
The DogeArmy has been looking for ways to get paid in Dogecoin for months. Now, they have one.
Through Coinbase, every employer who uses direct deposit has the option to pay in Doge, whether they know it or not. That's a big deal.
For over a year, Coinbase has offered its own debit card: the Coinbase Card.
The card, offered in partnership with Visa, ties directly to Coinbase users' accounts, automatically converting crypto into dollars at the point of sale.
Users are able to choose which cryptocurrency they want to spend through Coinbase's app.
The card also gives users the choice to earn 1% back in Dogecoin rewards.
Coinbase users can pay directly with Doge if a merchant accepts it, but most businesses aren't there yet.
By partnering with Visa, Coinbase has created training wheels for crypto payments so they can be used anywhere debit cards are accepted.
The combination of Coinbase Direct Deposit and the Coinbase Card allows people to pay and get paid in Dogecoin.
Suddenly, people have the option to completely bypass the legacy banking system and use Coinbase instead.
Now, the clock is ticking on banks like Chase and BofA to become crypto-native or get left behind.
No matter what happens, one thing's certain: the future of money is wow!
While the Coinbase listing hasn't had a big effect on Doge yet, Coinbase keeps hinting they have further plans for the dog-meme crypto.
iPhone users who download the Coinbase App are greeted with the news that they'll be able to trade the same three cryptocurrencies.
Based on its advertising choices, it's clear Coinbase views Doge as a top-tier crypto.
Coinbase isn't the only crypto payments company embracing the Doge.
This past week saw big news that crypto payment processor Bitpay had partnered with Verifone, one of the world's largest payment terminal companies, to support Doge payments.
Bitpay users will soon be able to pay with Doge at major chains like Taco Bell and Whole Foods simply by scanning a QR code on the payment terminal.
In the bigger picture, signs keep popping up that institutional adoption of crypto is on the horizon.
One thing to watch for is the much anticipated approval of a Bitcoin ETF.
A Bitcoin ETF would likely benefit all of crypto by establishing regulatory standards for custody and auditing.
Clarity will allow crypto-hesitant companies to proceed without fear that they're breaking the law, paving the way for companies large and small to hold Doge on their balance sheets.
As the first publicly traded crypto exchange in the US, Coinbase is leading the charge for institutional adoption of crypto.
The fact that they're leading with the Doge is an absolutely massive sign.
Doge and Coinbase Are Unstoppable
Coinbase has been building the infrastructure to bring the Doge economy to the masses. Now, Coinbase users can easily pay and get paid in Doge.
As the leading crypto for retail transactions, Dogecoin is poised to play a major role in Coinbase's challenge to retail banks like Chase, B of A, and Wells Fargo.
Coinbase's power move dovetails with the broader institutional adoption of crypto, which is picking up speed.
While the Coinbase-Doge partnership hasn't yielded big results yet, the future looks much promising!
Dogey Treats: News Bites
In a wide-ranging interview at CodeCon 2021, Elon said the thought China banned crypto because "cryptocurrency is fundamentally aimed at reducing the power of a centralized government." He added the US government should "do nothing" to regulate crypto and "let it fly."
Federal Reserve chairman Jerome Powell testified that the Fed has "no intent to ban cryptocurrency."
Dogecoin creator Billy Markus called for NFT platforms to accept DogeTokens once the Doge-Ethereum bridge is completed.
Faux Doge CEO greg received a $3 tip from Twitter CEO @jack using the lightning network.
A recent article found that Doge was the most popular cryptocurrency in 20 of 50 states.
Evidence emerged suggesting insider trading by Robinhood's President Jim Swartwout during the meme stock run-up of January 2021. An internal chat between Robinhood and Citadel hedge fund appeared to show that Robinhood informed Citadel the day before it restricted buying on certain meme stocks, causing the hashtag #KenGriffinLied to trend on Twitter.
El Salvador successfully mined Bitcoin using geothermal energy.
Missouri Mayor Jayson Stewart funded a project to give $1,000 of Bitcoin to every household in the town of Cool Valley.
Tesla announced they'd delivered 240k vehicles in Q3, up from 201k in Q2.
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Disclaimer: This is not financial advice and I am not a financial advisor. The article above references an opinion for entertainment purposes only and it is not investment advice. Do your own research and consult with a licensed financial adviser before making any investment decision. Do not treat any opinion expressed in this newsletter as a specific inducement to make a particular investment. Content, news, research, tools, and securities symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or cryptocurrency or to engage in any particular investment strategy. The information provided is not warranted as to completeness or accuracy and is subject to change without notice. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results and are not guarantees of future results. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, cryptocurrency, or financial product does not guarantee future results or returns. Dogecoin is a speculative and highly volatile asset susceptible to pump-and-dump schemes.
Disclosure: I currently own some Dogecoin, Bitcoin, and Ethereum. At the time of publication, Dogecoin is around $0.22 per coin.