Why Dogecoin, Ethereum, and Bitcoin erupted today

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What happened

Popular cryptocurrency Dogecoin (CRYPTO: DOGE) received a boost yesterday from a surprising source. Adam Aron, CEO of movie theater chain AMC, shared on social media his company’s need to start accepting payments with cryptocurrency. As of 2 p.m. EDT, Dogecoin was only up 1% from the previous 24 hours. However, it is up around 10% from this week’s lows.

The world’s two largest cryptocurrencies, Ethereum (CRYPTO: ETH) and Bitcoin (CRYPTO: BTC), were also up on Thursday. Both have increased by more than 2% in the previous 24 hours. These cryptocurrencies also appear to be supported due to new use cases, in this case not from AMC but from Twitter.

Image source: Getty Images.

So what

For the background, AMC previously announced that it will support payments from Bitcoin, Ethereum, Bitcoin Cash, and Litecoin by the end of 2021. According to CoinMarketCap, these are the 1st, 2nd, 18th and 19th largest crypto-coins. currencies by market capitalization. But for some people, the 10th largest cryptocurrency – Dogecoin – was conspicuously absent from those plans.

The complaints apparently reached Aron’s ears. The CEO of AMC posted a poll on his Twitter account earlier this week, asking his followers if the movie company should support Dogecoin in addition to other tokens already in its plans. And Aron was quickly surprised by the buzz created by his tweeted poll.

SO FASCINATING! Dogecoin Poll was by far my highest tweet ever read. In 24 hours, 4.2 million views, my most retweets, the most responses. 140,000 votes 77% yes 23% no. Clearly you think AMC should accept Dogecoin. Now we have to figure out how to do this. Stay tuned! pic.twitter.com/tkClzgMBMO

Adam Aron (@CEOAdam) September 22, 2021

Millions of Twitter users have given their support to Dogecoin, claiming that AMC should indeed support it. Aron hinted that the company will start accepting Dogecoin on time.

AMC is not the first company to accept Dogecoin. For example, you can use it to buy tech products on Newegg or buy tickets to a Dallas Mavericks basketball game. But Dogecoin use cases are currently limited. Therefore, Dogecoin fans see AMC’s acceptance as a bullish signal.

It’s important for cryptocurrencies to have a growing set of use cases to support long-term adoption. This is why today’s Twitter announcement is remarkable for Bitcoin and Ethereum. The social media platform rolled out a feature earlier this year allowing subscribers to tip accounts on the platform. As of today, Tips from Twitter will also support Bitcoin.

Additionally, Twitter is reportedly looking to authenticate non-fungible tokens on the platform as well. DTVs are a rare digital art form and are privately owned. At this time, there is no way to tell if a Twitter user has an NFT posted on their profile. But Twitter plans to fix this in the future with an authentication feature.

This is remarkable for Ethereum because many NFTs are built on the Ethereum blockchain.

Image source: Getty Images.

Now what

The tag team between AMC and Twitter does not guarantee that the values ​​of this cryptocurrency trio will continue to rise. The history of cryptocurrencies is still being written. Cryptocurrencies are increasingly supported today, as payment options and use cases also increase – this is an interesting chapter in this book. But in the long run, it’s hard to know where cryptocurrencies are heading.

For AMC and Twitter, it’s hard to imagine that this week’s news will move the needle of their respective businesses. In the case of AMC, it will accept cryptocurrencies as a form of payment, yes. But many people are unlikely to buy movie tickets with Dogecoin. And even if some did, it doesn’t seem likely that it would lead AMC to gain new customers who would have stayed home otherwise.

And for Twitter, it doesn’t currently monetize the Tips feature. Additionally, there is no timeline for NFT authentication. Today’s news is therefore interesting for these cryptocurrencies, but it is unlikely that it will improve the long-term business prospects of either company.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a premium Motley Fool consulting service. Were motley! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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