Following his $44 billion acquisition of Twitter in 2022, it’s been clear that Elon Musk’s plans for the social media platform are sky-high.
Speculation surrounding the platform has been fierce following Musk’s decision to share slides from his Twitter company talk in November 2022, which detailed plans for what the world-renowned entrepreneur detailed as “Twitter 2.0: The Everything App”.
Musk’s plans for Twitter 2.0 detail many new features designed to optimize the platform, including an enigmatic “payments” slide left blank in the published materials.
But could that payment system include Dogecoin? How would Dogecoin integrate into Twitter?
Utilizing Cryptocurrency to Build Revenue Streams
Twitter “needs to make money somehow,” warned Elon Musk when the company’s new owner unveiled plans for a premium verification service on the platform.
Musk also acknowledged that Twitter was losing $4 million per day in its existing format, which has likely formed a catalyst to accelerate plans for Twitter 2.0. But how can cryptocurrency come to the rescue and convert the platform into a thriving social environment?
While Musk’s fixation with the meme-based cryptocurrency Dogecoin has been long documented (his tweets caused the Dogecoin price to spike), the coin’s background makes it a strong contender to fit the bill as a digital currency that can be adopted for digital payments on Twitter.
As it was created as a joke by a developer who has long since abandoned the currency, a social network like Twitter can give it some much-needed purpose. Other assets like Bitcoin, which exist today as more of a store of wealth, could struggle to achieve the same results.
For a globally-focused social network like Twitter, implementing cryptocurrency onto the platform could be a revolutionary step in truly becoming “the everything app.” From creating an embedded virtual wallet to pay for premium features like Twitter Blue to implementing one-click purchases for tagged products in posts in the future, Twitter could become an advertising juggernaut that boasts a payments system that’s as functional as Amazon on a worldwide scale.
The utility of crypto can also make one of Twitter 2.0’s core features a reality in making “advertising as entertainment” more penetrative, helping the platform to generate more impactful revenue streams to secure its long-term viability.
Implementing Cryptocurrency on Twitter
The implementation of cryptocurrency into Twitter is already occurring, with assets within the decentralized finance ecosystem like NFTs taking center stage in Twitter 2.0.
Long before the arrival of Musk, Twitter added a feature that enabled users to show off their NFTs as specially designated profile pictures, making the blockchain-based assets considerably more functional for their owners.
Furthermore, it emerged in October 2022 that the platform has been planning to enable users to buy and sell their NFTs in tweets thanks to embedded marketplace auctions.
While Twitter has had a rich history of working alongside blockchain elements like NFTs and introducing them to the social networking landscape, the arrival of the much-publicized crypto advocate Elon Musk will likely accelerate this trend.
Will Dogecoin Become Twitter’s Currency?
There’s no getting away from investor excitement at the prospect of a future partnership between Twitter and DOGE. In fact, Dogecoin’s performance has excelled off the back of Musk’s 2022 acquisition of Twitter and the suggestion that his vision for the future of the platform could incorporate crypto.
Over the course of January 2023, DOGE grew by more than 13% as investors banked on seeing the cryptocurrency’s involvement with Twitter increase. Indeed, when the Tesla and SpaceX CEO concluded the purchase of the social network on October 27th, 2022, DOGE underwent a rally that saw the value of the asset rocket from $0.06 to $0.14.
Because of Dogecoin’s vast circulating supply of almost 138 billion coins, and its relatively low value, the cryptocurrency is a credible candidate to be utilized as a native currency for a social network like Twitter. However, Musk may also set his sights on implementing his own, more advanced cryptocurrency to support Twitter.
When It Comes to Dogecoin, Expect Volatility
If there’s one thing that’s likely for the future of Dogecoin, it’s market volatility. As a token almost entirely driven by market sentiment, Elon Musk’s relationship with the asset has caused wild market rallies and harsh pullbacks for investors.
Given the unpredictability of Musk as he looks to manage the future of Twitter, we’re likely to see more DOGE volatility and heavy levels of speculation surrounding the coin.
Is it worth buying into DOGE? If you’re interested in buying into a high-risk asset, Dogecoin could be an exciting pickup, but with Musk remaining ambiguous over exactly how payments will be implemented in the future of Twitter 2.0, DOGE should be regarded as nothing more than a meme token at this stage.