Bitcoin beats Dogecoin to Twitch

Just one week after it was confirmed that Google would acquire game-streaming service Twitch in a deal worth $1 billion, Twitch announced that it was partnering up with payment services company Xsolla. Xsolla offers Bitcoin support via Coinbase. Users will be able to use Bitcoins to pay for the turbo subscriptions that Twitch offers. What this will mean for Google and Bitcoin remains to be seen, but in any case it makes Bitcoin the first cryptocurrency to arrive on Twitch. Even though Twitch has 50 million viewers, the Bitcoin community is unlikely to be impressed by this given other recent announcements. For example, Expedia, Dell and Wikipedia were among the biggest organizations to add Bitcoin to their payment or donation options recently.

Tipping on Twitch

For Dogecoin, however, the news could be a big disappointment. In May it was already announced that Josh Mohland and David Dvorak, founders of the dogetipbot on Reddit, would be bringing Dogecoin tipping to Twitch. The news was confirmed by a Twitch representative. Until today, Dogecoin tipping still has not been implemented on Twitch. Hence, Dogecoin has already lost the battle to be the first cryptocurrency on Twitch. But with Google’s acquisition of Twitch, it has become uncertain whether Dogecoin will ever make it to the platform at all. The idea of Dogecoin integration on Twitch could possibly be scrapped now that Google is in charge. Mohland declined to comment to on this.

But even if Dogecoin still gets integrated into the website, Twitch’s addition of Bitcoin to its payment options makes it seem unlikely that Dogecoin will get its own exclusive functionality on the platform. This would be a big loss for Dogecoin, which struggles like many other altcoins in their attempt to offer some unique utility.

Support crumbling

The Dogecoin community already had to deal with several other disappointments recently. The Dogecoin massively multiplayer online role-playing games (MMORPG) Voidspace Kickstarter was cancelled. The project team will continue their work, but needed the funds to be able to finish the game’s development over a two year period. Voidspace would implement other currencies besides Dogecoin, but chose Dogecoin as their frontrunner. As the game would not be finished soon anyway, the impact of a delay or cancellation is not that big. Worse was the decision by Amagi Metals to stop accepting Dogecoin specifically.

In the meanwhile Dogecoin’s backbone, its community, has started crumbling over the recent weeks causing even more concerns. Several days ago, one community members pointed out that the community size was decreasing, and that something had to be done to turn the tide. Citing user Nife5: “The truth is that we didn’t have any serious PR stunt since the Dogecar fundraising […] Since this, we’ve been quite asleep, suggesting, forgetting and failing a lot of fundraisers. We even failed several community votes. ” With both companies and community members ditching the meme-based cryptocurrency, it certainly seems like the coin could use a big boost.

  • Mouse, Anan E.

    Bitcoin only beat us as a payment method. Dogecoin will be the tipping platform for Twitch. That is a big difference as far as I understand.

    • Twitch is effectively slamming the door for Dogecoin on its subscriptions (Coinbase has no plans for Dogecoin support), I think that is a pretty strong statement. It takes away the shine of being on Twitch (which is currently promoting Bitcoin, not Dogecoin), and raises the question to what extend Dogecoin presence will be special to the digital currency.

      • Mouse, Anan E.

        You do realize that Charlie Lee (creator of Litecoin) and the man who pushed Dogecoin to agree to merge mine with Litecoin is on the Coinbase team right? I wonder which coins will be adopted next? Patience. I feel like you must have bought during the hype and sold during the recent depression. It certainly seems that way based on the timing of your site and the subsequent branding change (when you probably sold your doges). If that is indeed the case, swallow your pride and buy back because patience will pay off big time.

        • You can also turn this around, as Charlie Lee does not even get his own coin added to the platform (he has been working for them for a while now). Citing Charlie Lee on Dogecoin: “Lastly, given my involvement with Litecoin, why would anyone believe a
          rumor that Coinbase would skip Litecoin to support Dogecoin?” If any coin is next, it would be Litecoin.

          Lastly, I do not hold any of the cryptocurrencies I write about to avoid emotional involvement. In fact, I consider cryptocurrencies in general too volatile to hold any serious quantities of to begin with. Even Bitcoin has a volatility of 25 percent annualized, and Dogecoin’s annual volatility is over 170 percent (calculated from the daily vol based on the past 30 days). This lack of financial interest allows me to comment from a neutral point of view. Also, I already expressed critique on Dogecoin on several occasions well before the rebranding.

          • no

            digiconomist is not a reputable site!
            the owner or mod should be neutral…..

          • And why would you insist that Digiconomist is not neutral? At the very worst, I would be biased positively towards Dogecoin given the number of community members that visit Digiconomist… I do not hold cryptocurrencies for general reasons as explained.

      • Shibe

        So saying nothing means they have it? Quick, the US army has said nothing about crypto, therefore they will start killing its supporters! Grab your weapons and blocking doors!

  • JusTech

    Right, like people are going to tip .0000000000001 bitcoins. Oops, I left out a couple zero’s and accidentally tipped $58…………………………Really?

    • Note that if Bitcoin would be used for tipping, it would be in mBTC or a smaller denomination. Dogecoin only offers more speed than Bitcoin, which is otherwise perfectly suitable for tipping.

      • Mouse, Anan E.

        Dogecoin does not need to “strengthen it’s position”. It is positioned as good as a coin could be positioned in it’s first 8 months of existence. If the price drop during the hyper inflation phase of the coin surprises you, you need to learn about economics. Surprising given your site’s name “digiconomist”.

        • I don’t fully understand why you are insinuating that I base any statements on Dogecoin’s falling price… Second, you are using a half-truth to apparently claim that these prices would be meaningless.

          I have extensively covered the basics of inflation/deflation before, but I would not use it to obscure Dogecoin’s deteriorating state. You are conveniently leaving out the concept of “supply and demand” which is bigger than just inflating supply, so let’s look at some numbers. Dogecoin’s current annualized inflation rate is 44 percent, while Bitcoin is currently at a little over 10 percent. Over exactly two months, Bitcoin has not even lost 10 percent of its value, while Dogecoin nearly half of its value. Taking this up a notch, compared to three months ago Bitcoin value has gone up nearly 40 percent, while Dogecoin is down well over half. You can attribute this to the higher inflation, but Dogecoin also managed to increase in value when its inflation rate was well over 100 percent annualized. In order to explain the difference, you should include demand as well.

          Compared to exactly two months ago, the number of /r/dogecoin subscribers has been flat (even decreased slightly), the current trend is downward not even mentioning the average daily active users (I was already around when this number was still at about 1,000, now it’s below 300). Also the recent volumes in Dogecoin trading look awfully low compared to two or three months ago. During this time, Dogecoin tipping has been or became available to 1.3 billion Facebook users and 645 million Twitter users. Rather than adding to Dogecoin growth, Google search interest for the word “tip bot” only briefly peaked before dropping to about zero currently. Don’t forget to add what is already mentioned in the article. Altogether, this tells a story of stagnating growth and limited upside (this all happens on the demand side). I certainly wouldn’t call this “as good as a coin could be positioned in it’s first 8 months of existence.”

          • Mouse, Anan E

            Woolong pumped dogecoin to ridiculous heights and then dumped it all while inflation was through the roof. The combination of the dump and inflation makes the Dogecoin drop seem very dramatic but understanding the reasoning behind it, you can see that it is based on values that should not have been so high in the first place and inflation that is much higher than it will ever be.
            As the price continues to fall, doge will further settle into the stronger hands and all the while the community has been working on building it’s economy. You make excellent excellent points but I still disagree with your conclusion that Dogecoin is not positioned well.

          • your conclusion that Dogecoin is not positioned well.

            Hold on! I concluded “the coin could use a big boost” and did not agree with your assertion that this was “as good as a coin could be positioned.” There are not many cryptocurrencies that will have their logo taped to a NASCAR car this fall. If AuxPoW can fix the coin’s network, then this could be a moment to turn some of the tide (although this of course depends on more than just the state of the network).