What are meme coins? Why are meme currencies good for payments?

Meme coins had an unparalleled increase in 2021, with the market essentially saturated with them. Their success stems in great part from influential people sharing their thoughts on social media. Is it worthwhile to invest in meme coins and why are they so popular? Let’s think about it some more.

The impact of influencers and a vibrant community is helping to boost the popularity of the cryptocurrency meme.
Meme coins are more volatile assets, with big gains and losses possible.

What is a meme coin?

Meme coins, on the whole, have no inherent value or utility. As you might expect based on their names, these cryptocurrencies are frequently (but not always) inspired by Internet memes: jokes and images shared on social media.

Dogecoin (DOGE), the first meme coin, is based on the long-running meme Doge, which features a photo of a Shiba Inu dog. Dogecoin, on the other hand, use a separate blockchain, which distinguishes it from all other meme coins that leverage existing blockchains.

The Dogecoin and Shiba Inu (SHIBA), an ERC-20 token issued on the Ethereum blockchain, are the two most popular meme coins at the present. However, there are dozens of other cryptocurrencies that are comparable.

What is the difference between cryptocurrency and meme coins?

All cryptocurrencies rely on the support of their user communities and influencers. Meme currencies, on the other hand, have grown in popularity thanks to strong ties to important personalities like Elon Musk. The price of a token based on any topic (even the children’s lullaby Baby Shark) will begin to fly at the speed of light if Tesla’s CEO sends out a tweet about it.

Meanwhile, meme coin producers are attempting to break into the news summary in order to raise the price of tokens. As a result, the Shiba Inu creators chose to award Vitalik Buterin, co-founder of Ethereum, half of all SHIB tokens. But he thwarted their objectives by burning and giving the majority of the tokens received, and then publicly pleading with all cryptocurrency developers not to send tokens to him without his permission. “I don’t want to be a locus to be a locus of power of that kind,” he said at the end of his speech.

Meme tokens currently account for around 2.5 percent of the cryptocurrency market capitalization, with the overall industry valued at $38 billion. Sharp price swings, on the other hand, are prevalent in this market.

A vast number of tokens in circulation characterizes any meme cryptocurrency, and this amount frequently surpasses quadrillions.

Should you invest in meme coins? Won’t you get burned?

It is entirely up to you whether or not to invest in any crypto asset. We can’t make any promises on investing issues, whether it’s with traditional cryptocurrencies or meme coins. However, we can confidently state that such assets are worth examining for a variety of reasons:

They have a devoted and powerful community. Nonetheless, Dogecoin, for example, has over 3 million Twitter followers, which is comparable to the crypto Bitcoin. Shiba Inu, with 2.8 million subscribers, is also not far behind. As we all know, one of the reasons for the rise in the price of cryptocurrencies is the value that people place in them, and with such big communities, we should expect meme coins to continue to climb in value.
Meme coins’ prices are often more variable, which means they might be profitable. There are risks, as with any investment, but it’s worth noting that the price of a meme currency is extremely sensitive to news and statements from well-known figures. The price of the meme currency rose by about 50% after Elon Musk tweeted merely the word “Doge.”
They can be used in real life. Meme coins are particularly popular among shops; Dogecoin, for example, is accepted for payment by over 1400 businesses all around the world (according to Cryptwerk). Furthermore, meme cryptos are frequently used in the field of philanthropy.

Why are meme coins good for payments

As previously stated, meme coins are frequently accepted as a form of payment. This is due to a variety of factors:

Community
Meme coins have tens of millions of users who are ecstatic to see their favorite coins accepted as a payment method. Many businesses are embracing meme coins as a payment method since it is just unprofitable to ignore such a large pool of potential clients.
Fees
Crypto meme network transactions are frequently more profitable than Bitcoin or Ethereum transactions. Furthermore, the price and fees of such cryptocurrencies enable micropayments.
Security
Meme cryptocurrencies are most commonly found on the Ethereum blockchain, which is one of the most secure and stable on the market. As a result, users should not be concerned about the security of their funds.