Why the Success of Alts like Dogecoin is Promising for the Future of Bitcoin

by | Nov 2, 2021

With Premise being active in 125 countries globally, we are cognizant that some of our Contributors are living in parts of the world with hyperinflation. Because of this, we actively seek payment solutions for our Contributors living in those parts of the world.

Our solution: Allowing Premise Contributors to cash out via Coinbase. With blockchain technology facilitating fast, secure, and low-cost international payment processing services, we are able to complete trusted transactions without intermediaries like banks.

We are dedicated to the continued growth of decentralized finance and the many potential uses of blockchain technology – which is why we provide our loyal Contributors with the opportunity to profit from the volatile nature of the current crypto market by receiving payment in Bitcoin (BTC). Since 2016, as many as 23% of our Contributors are electing to be paid out in BTC, and the number continues to grow as BTC’s value consistently increases (at the moment, it sits at about $60,000 a coin).

Bitcoin and Gig Economy

Since the gig economy was born, traditional merchant services have been the primary way these workers get paid for their services. However, it is characterized by fees summing up to 4% of the freelancer’s income. This created the need for workers to look for other alternatives, like Coinbase. So, what are the benefits of Bitcoin payment to gig workers? A blockchain-based freelancer marketplace is putting control into the worker’s hands.

Though proving to be widely popular, at the same time, many hesitate to engage with cryptocurrency because they don’t feel they know enough about how blockchain works. As an entirely new approach to finance, challenging traditional banking institutions, cryptocurrency still has its skeptics.

Of those who are paid in BTC, 46% convert it to their local currency while 41% hold onto it, likely as a long-term investment. Beyond volatility, people will also have to convert their cryptocurrencies into cash to use their earnings since, of course, most establishments don’t accept Bitcoin. With almost an even split, it’s clear many of our Contributors are taking the long-term perspective on their earned Bitcoin, and believe it to increase in value in the near future. At the moment, Bitcoin, Ethereum, and altcoins (Dogecoin, Litecoin, Bitcoin Cash) are demonstrating more and more value as an archaic banking system is struggling to maintain its appeal. 

With many popular figures, from athletes to Elon Musk, championing BTC and other alts, Premise Contributors are not only coming around to the idea of investing in cryptocurrency but also are seeing it as an investment opportunity.

For instance, on March 4th of this year, Mark Cuban announced that Mavs Fans For Life (MFFLs) could use Dogecoin, a cryptocurrency created in 2013 by software engineers Billy Marcus and Jackson Palmer as somewhat of an inside joke for crypto enthusiasts, to purchase tickets and merchandise online. BitPay, the world’s largest provider of Bitcoin and cryptocurrency payment services, rolled out Dogecoin as a payment method on the same day, making the Mavericks an immediate adopter of the cryptocurrency. The Mavericks accepting an altcoin like Dero just because it’s “fun” is yet another indication that Bitcoin is only beginning to snowball.

“The Mavericks have decided to accept Dogecoin as payment for Mavs tickets and merchandise for one very important, earth-shattering reason, because we can!  Because we can, we have chosen to do so.  We have chosen to do so because sometimes in business you have to do things that are fun, engaging and hopefully generate a lot of PR. So we will take Dogecoin, today, tomorrow and possibly forever more,” stated Cuban. 

This is the kind of embracement of the endless possibilities of cryptocurrency that we are going to see a lot more of in the near future, and why Premise is dedicated to getting our Contributors involved in Bitcoin. However, even while Cuban acknowledges the benefits of Doge, he calls Bitcoin “the safe haven of crypto.”

While Dogecoin processes payments faster, Bitcoin has a much higher level of security and code scrutiny. Additionally, Bitcoin’s increasing value is heavily due to the cap on the number of coins in existence. Dogecoin has no such cap – the amount of coins that can be mined is currently limitless.

The global survey Premise conducted backed up this sentiment, with a full third of respondents saying they perceive Bitcoin to be more secure than their local currency.

41% say they believe Bitcoin to be ‘more trustworthy’ than their local currency. Distrust in government/banking is currently playing a massive role in the move towards decentralized finance. 

With Bitcoin, Premise offers Contributors the chance to be a part of a historic shift in finance happening before our eyes. As the most established cryptocurrency, Bitcoin is also the most reliable offering for Contributors. Premise is not alone in this. There are a wide variety of merchants that are adopting digital asset commerce solutions; over 8,000 merchants have already signed up and are using Coinbase Commerce. 

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