The ability to pay everywhere in meme coins is a secret wish of many crypto enthusiasts. But what are the real prospects of this plan? Security and trust of meme coins.
The role of me coins in today’s market remains questionable. Likewise, these altcoins, like other cryptocurrencies, should be used with decentralization and less vulnerability to external attacks.
On the other hand, the skeptics are convinced that there is insufficient monitoring of mem tokens by the regulatory body and there is a large price fluctuation. In addition, questions arise about the nature of their release. But above all.
Crypto enthusiasts and, in particular, memcoin fans are convinced that due to the lack of central control in the system, money is saved more. This is realized through blockchain technology and the verification process used, which allows network participants to work independently: miners or supporters.
Opponents of this approach (usually those who oppose the concept of cryptocurrencies), on the contrary, believe that memcoins do not have a fundamental component.
Lack of government control, lack of overall coordination, and lack of support from financial institutions. But there is a price increase, which is often driven by social media. It is this last thing that is the main argument against memcoins.
Increased flexibility can make you rich today and have nothing tomorrow. And all because someone wrote a few posts on Twitter.
It turns out that you will need a result (middle price) between the total control (always, if it is applied, it will no longer be a crypto-currency) and the creation that memcoins brings life. A few words about the nature of memcoins are pointless. At the very least, it raises questions. The representative of this class of cryptocurrencies, Dogecoin, initially had a limited supply. It’s a hundred billion coins.
However, in 2014, it was decided that air restrictions were no longer necessary. The bad step was taken by Dogecoin co-founder Jason Palmer. In other words, decentralization is not at the level of software elimination, but is a questionable concept. If so, the benefits over traditional payment methods, where governments and central banks play an important role, are already highly controversial.
In this sense, the criticism of decentralization is true not only in memcoins, but also in many other constantly updated altcoins. Updates, for example, due to a strong fork of the network, actually occurred in the minds of developers and other central members. Memcoins as an exchange system.
If we compare fiat money and memcoins as an exchange, the considered options will have both advantages and disadvantages.
The first thing you’ll notice is the difference. In this regard, the traditional method of exchange makes memcoins, as they allow at least some features, given the stability of the exchange rate.
Second, there are a few places where cryptocurrencies are accepted for payment. In many countries, digital currency is banned. And even where they are allowed, for example in Japan, the company itself can decide whether it accepts payments in cryptocurrency. This is especially true for memcoins.
However, meme tokens also have their benefits. For example, the lower committee. If you transfer fiat money from one bank to another, it will cost you a lot of money. And, of course, decentralization. Either way, memcoins have many signs of decentralization. Fiat money is directly controlled by the government and its supply is often unlimited, which leads to long-term debt, i.e. inflation.
But what should be done for memcoins to be introduced into everyday life? How to make memcoins free to accept
First, there should be a well-defined legal framework that will enable businesses to accept cryptocurrency payments. In addition, the main points of memcoins should be clearly defined so that there is no legal deadline. Second, the company will have an incentive to accept such costs.
Some beauty salons or bakeries accept payment in Bitcoin or Ethereum, but not Dogecoin and Shiba Inu. For what? Because popularity (and liquidity) is high. Third, memcoins will be distributed fairly among users. And there, there is a little demand, we need good support from the company. Modern payment services can implement support for memcoin payments.
Fourth, it is important to develop smart contracts. In the current economic situation, when people are not ready to give up fiat money, it is important to be able to quickly convert some assets into others. For example, DOGE in USD or BTC. This can be done through smart contracts. Are there any problems with supporting ethical memcoins?
Widespread support of memcoins
The main thing that opponents of Dogecoin, Shiba Inu, Pepe, FLOKI, and others can stick to is the lack of some “backing principle”. After all, what are memcoins? Beautiful or funny stories from the Internet, on the basis of which cryptocurrency was created. Another obstacle may be the weather.
Most cryptocurrencies are based on the PoW consensus algorithm, which means that in order to get these coins, you need a mining organization and electricity. And although the question of the risk of mining and the environment is controversial, and remains the subject of assessment of different interests, the very idea that can harm the situation of the popular green is not useful e-money.
Memcoins can be used for money laundering or illegal activities. As, however, with other cryptocurrencies, and common fiat money. Therefore, there is no difference between memcoins and other methods of payment.
On the other hand, the regulators represented by central banks are usually not interested in supporting digital currencies other than their own (with the exception of CBDC, which uses the advantages of cryptocurrencies in the form of “transparent blockchain” to increase control. ).
Well, in the end, people in general are ready for something new. Cryptocurrencies, of course, are included in everyday life. But most of the people who are interested in it know bitcoin and ether. Who knows the top ten cryptocurrencies by capitalization, but very few.
In the coming years, it is unlikely that memcoins will replace traditional currencies. The person who recommends Bitcoin will. But Dogecoin, Shiba Inu, and Pepe are still around. There are many reasons for this:
- Questions about governance. There is no foundation.
- Concerns about regulatory oversight and lack of well-developed legal frameworks. There is no interest in this issue from central bankers.
- This document and the information contained in it do not constitute any personal or other investment advice. The views of the editors may not coincide with the views of the author, reviewers, and experts.