Amazon's Potential Embrace Of Dogecoin: A Crypto Revolution?

As of February 2022, Amazon does not accept Dogecoin as a payment method. However, there are speculations and rumours that Amazon and its founder, Jeff Bezos, might start investing in Dogecoin. A crypto-analyst YouTube channel, 'Self Made', claimed that if Bezos were to approve Dogecoin, it could skyrocket to a record price of $1 in less than 24 hours. This would be a massive turn in the success of the meme-based cryptocurrency, as it would have the approval of the two richest men in the world, Bezos and Elon Musk.

Amazon's stance on Dogecoin

However, it is possible to use Dogecoin to purchase Amazon gift cards through third-party applications that act as intermediaries. One such reseller is BitPay, which facilitates the use of Dogecoin to buy gift cards on sites like Amazon. In this case, Amazon still receives government-issued currency.

While Amazon has not accepted Dogecoin, its owner, Jeff Bezos, has been speculated by analysts and YouTubers to be the one investor who could push Dogecoin's value over the $1 mark. Bezos' approval of Dogecoin would show that the cryptocurrency is supported by the two richest men in the world, Bezos and Elon Musk, who has also tweeted his support for Dogecoin.

Jeff Bezos's influence on Dogecoin

Jeff Bezos, the founder of Amazon, has had a somewhat limited but interesting influence on Dogecoin. In May 2022, Bezos started following Dogecoin co-founder Billy Markus on Twitter, leading to speculation that the Amazon founder was warming up to Dogecoin. This caused a stir in the Dogecoin community, with some welcoming Amazon into the "Doge family" and others suggesting that it would have a significant impact on the cryptocurrency.

At the time, Amazon did not accept Dogecoin or any other cryptocurrency as a payment option on its platform. However, there had been rumours and speculation that this could change. A job posting by Amazon in 2021 and comments made by then-CEO Andy Jassy in an interview with CNBC suggested that the company was considering accepting cryptocurrencies or selling non-fungible tokens in the future. Jassy stated, "We're not probably close to adding crypto as a payment mechanism in our retail business, but I do believe over time that you'll see crypto become bigger."

Despite this, as of February 2022, Amazon had not integrated any cryptocurrencies into its payment system. The company even released a statement denying that it had plans to accept cryptocurrency anytime soon. This prompted the creation of a petition called "Doge4Amazon," urging Amazon and Bezos to accept Dogecoin as a payment option. The petition had garnered over 240,000 signatures as of May 2024.

In addition to the speculation surrounding Bezos following Markus on Twitter, a YouTuber in April 2021 claimed that Dogecoin could skyrocket to a record price of $1 "in less than 24 hours" if it had the backing of Amazon and Bezos. The YouTuber suggested that the approval of Dogecoin by Bezos would show support from the two richest men in the world and could have a significant impact on the cryptocurrency's value.

While there has been no direct investment in Dogecoin by Bezos or Amazon, the influence of Bezos on Dogecoin is seen in the community's reaction to his actions and the ongoing petitions and speculation about potential future integration of Dogecoin as a payment option on Amazon.

Elon Musk's support for Dogecoin

Dogecoin, based on the "doge" meme, was initially started as a joke but has since gained a following, in part due to the support of billionaire Elon Musk. Musk, a well-known supporter of cryptocurrencies, has regularly weighed in on the recent frenzy in retail investment, driving up the prices of dogecoin and shares of U.S. video game chain GameStop.

Musk's support for Dogecoin began with a single tweet containing the word: 'Doge'. This was followed by several other tweets, with the latest being Musk saying that Dogecoin was 'on the actual moon'. The phrase, 'Going to the moon', is widely used in trading markets to predict a jump in stock pricing. Since Musk's tweet, Dogecoin's assets shot up by 25% on the Wednesday following his tweet at 8:00 AM ET. By 10:17 AM ET, Dogecoin's trading had surged by 23.11% to $0.0581. Musk has also called Dogecoin ""the people's crypto", and added the term Bitcoin to his Twitter bio (which he later deleted), causing a jump in the cryptocurrency's price by as much as 20%.

On the social audio app Clubhouse, Musk said that "Bitcoin is a good thing" and that he was "late to the party". He also said that Dogecoin is "on the verge of getting broad acceptance" in finance. In a tweet, Musk also revealed that he bought Dogecoin, the "future currency of Earth", for his nine-month-old son.

Musk has made several other tweets about Dogecoin, posting memes and calling the token "the people's crypto". He has been joined by celebrities such as Snoop Dogg and Gene Simmons, who have also tweeted their support for Dogecoin.

Dogecoin's value and volatility

Dogecoin is a highly volatile cryptocurrency. It was created as a joke in 2013 by IBM software engineer Billy Markus and Adobe engineer Jackson Palmer. It is based on a viral internet meme of a Shiba Inu dog. Dogecoin's blockchain operates using a proof-of-work consensus mechanism, the same system used by Bitcoin.

Dogecoin has experienced several short-lived price jumps since its launch. The first took place almost immediately after the token went live, when its price soared by 1061% in 15 days. The second big hike took place in March 2017, during the early stages of a crypto bull market, when the price rose by 1494%. Dogecoin's value increased significantly in 2021, spurred by endorsements from celebrities like Elon Musk and other supporters. The coin posted a 9884% gain between January and May 2021, reaching an all-time high of $0.74.

Dogecoin's value has continued to fluctuate since then. As of July 2024, Dogecoin's price is $0.12809880, with a market capitalization of $18.60 billion. Dogecoin's price has changed by 43.71% so far this year. Over a longer period, Dogecoin's price has decreased by 5.21% in the last week, increased by 8.24% in the last month, and increased by 65.69% in the last year.

Dogecoin's volatility is reflected in the Compass Crypto Volatility Index Dogecoin – 20%, which provides dynamic exposure to Dogecoin with an annualised volatility target level of 20%.

There are several risks associated with owning Dogecoin that investors should be aware of. Unlike many other cryptocurrencies, Dogecoin has an unlimited supply, which means its prices are not supported by scarcity. Dogecoin also has a high issuance rate, with 28 million new Dogecoins entering circulation every two days. This high issuance rate can impact the value of Dogecoin. Additionally, Dogecoin's technology development has been infrequent, with relatively few code updates and releases.

Third-party Dogecoin purchases

As of February 2022, Amazon does not accept Dogecoin as a payment method. However, there are several third-party platforms through which you can purchase Dogecoin.

There are multiple third-party platforms that allow you to buy Dogecoin. These include:

• Binance: A centralised exchange that offers many options to buy Dogecoin, with the lowest fees and highest security.
• Coinbase: A well-known cryptocurrency exchange that allows you to buy and sell Dogecoin.
• Kraken: A cryptocurrency exchange that supports Dogecoin purchases.
• Robinhood: A beginner-friendly investment app that can be used to purchase Dogecoin.
• Uniswap: A decentralised exchange where you can exchange Bitcoin or Ethereum for Dogecoin.
• Trust Wallet: A decentralised exchange that supports millions of assets and blockchains.

It is important to note that when using third-party platforms to purchase Dogecoin, you should always conduct thorough research and consider factors such as security, fees, and the quality of the supported cryptocurrencies and wallets.

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