One of the latest mass adoption signs is the AMC announcement that it will accept cryptocurrencies for purchasing tickets. More recently, the company added Dogecoin to the list of accepted coins, following the Dallas Mavericks in this venture.
In this article, we explore some of the recent happenings with AMC as well as the details behind the Dogecoin cryptocurrency.
How did AMC become a meme stock?
Although a cinema giant, AMC has been considered to be a struggling company in the past couple of years. Its stock had fallen under the $2 mark and was considered penny stock for traders, and a good stock used for short-selling. The COVID-19 crisis and cinemas being forced to close further amplified the bearish sentiment about the company.
However, following the craze on the WallStreetBets subreddit, the stocks of struggling companies Gamespot and AMC skyrocketed overnight. AMC’s stock is now trading at around $35 per equity, a far cry from the $2 from the beginning of 2021.
Realizing that the price surge of the stocks was based on memes, AMC accepted this reality. After all, memes saved the company from certain demise, as hedge funds were determined to short-sell AMC stock to the ground.
Consequently, it came to no surprise that the company decided to accept the Dogecoin cryptocurrency as a payment method, another world-renowned meme.
What is Dogecoin?
Dogecoin is the original meme coin, created in 2013 to mock the seriousness of the cryptocurrency investors’ mindset. It was released to provide the crypto community with a coin that was easy to understand and easy to use.
The success was immediate, as the coin skyrocketed in the top 20 coins by market cap only a couple of weeks after its appearance on the markets. The community seemed to appreciate this lighthearted digital currency that didn’t take its self seriously at all.
Cryptocurrencies are getting increasingly popular for the multiple financial instruments that are based on their fluctuating prices. Investors can go long on cryptocurrencies or short them to make quick profits without ever owning said coins. This has made options platforms like Bitlevex very popular among traders.
That said, for cryptocurrencies to really become mainstream, they are in dire need of mass adoption. In the past year, we have seen indicators of such adoption slowly show up in the news. With PayPal offering cryptos in their digital wallet and El Salvador making Bitcoin legal tender, we are decidedly going forward in this direction.
Without a capped supply and 10000 new DOGE created every minute, the cryptocurrency lacks fundamental value. Nevertheless, it has become a community favorite, with famous supporters such as Elon Musk, Snoop Dogg, and Gene Simmons.
What is AMC’s history with cryptocurrencies?
In a tweet published on September 16th, AMC CEO Adam Aron announced that the company would start accepting Bitcoin as a method of payment by year’s end. In addition, it would accept other popular cryptocurrencies such as Litecoin, Bitcoin Cash, and Ethereum.
There was no world of Dogecoin just yet, and the community made it clear that it was sorely missed on the list of accepted cryptos. This was rectified just recently, as, at the beginning of October, AMC added Dogecoin to the list of accepted cryptocurrencies.
More precisely, DOGE can be used to purchase AMC gift cards for up to $200 using the BitPay mobile app. So, for those that were hoping to pay for their tickets and popcorn with DOGE directly at the theater, this might seem a bit disappointing.
That said, the company is clearly in favor of cryptocurrency adoption as a payment method. It’s just a matter of time of when you will be able to directly pay with your favorite crypto at the ticket booth.
What does this mean for the future of cryptocurrencies?
Established companies starting to accept cryptocurrencies as a payment method bodes well for the future of these digital assets. Through increased exposure, interest in cryptocurrencies should rise in the mainstream public.
Moreover, when institutions such as AMC invest considerably in a crypto infrastructure, trust in cryptocurrencies will inevitably arise within the public. Instead of seeing them as an obscure investment product, cryptocurrencies start to be regarded as a legit means of payment.