The idea of cryptocurrency disrupting the world financial system is not far-fetched. In fact, as crypto goes mainstream, banking as we know it today may cease to exist. Cryptocurrencies could do to banks what the internet did to the mainstream media. It transformed it to a point where many media companies that were once giants are now struggling to turn a profit. Power shifted to individual news makers such as bloggers and YouTubers. In a scenario where crypto fully disrupts the finance industry, it would not be far-fetched to see a coin like Dogecoin competing with credit card companies and winning. Like the media companies, these companies may look big and unshakable today, but Dogecoin (DOGE) has a number of advantages over them.
One of its advantages is security. Security is the one area where decentralized systems beat centralized ones hands down. Dogecoin (DOGE) is a decentralized system which means that there is no central point of failure. In a world where internet security is becoming a major source of concern, people will ultimately shift to blockchain for its security that is based on decentralization. On this basis, Dogecoin has a real short at competing with credit card companies and winning. Dogecoin (DOGE) is one of the cryptos that can claim to be truly decentralized alongside Digibyte (DGB) and a few others. Many of the rest, have an element of centralization to them.
Another factor that makes Dogecoin (DOGE) competitive and a worthy competitor to credit cards is the fact that transactions cannot be censored. While card companies can censor your transaction depending on the terms of service, with Dogecoin (DOGE) and most cryptocurrencies, you own the process. It doesn’t matter where you are sending money or who you are sending to, you are sure that the transaction will go through. This could be the number one reason why most people could easily turn to Dogecoin and other cryptocurrencies. There is nothing as cumbersome as being unable to send, or purchase what you want, due to restrictions yet it is your money that you want to spend.
Then there is the aspect of costs. Credit card transactions don’t come cheap. They come with high fees for the companies that own them to make a profit. It’s simple business logic. However, low fee cryptos like Dogecoin could easily turn this business model upside down. Dogecoin has some of the lowest fees of any crypto. In fact, it is almost free. When its low fees combine with its other features such as censorship resistance, it’s not hard to see why Dogecoin (DOGE) could be poised for a takeover of this market.
Overall, there is every indicator that crypto is taking over. Adoption is growing, driven by the entry of institutional money into the space. For a coin like Dogecoin (DOGE), merchant adoption has been growing steadily over the years. It now ranks close to Bitcoin, Ethereum (ETH) and Litecoin (LTC) in terms of merchant adoption. That’s a good sign of good things to come. Its future in finance is taking shape.