Against all odds, Dogecoin is the biggest winner in crypto this week. Well, we all know it started as a joke in 2013 but that was not its destiny. Now Dogecoin is one of top 10 crypto currency in the world. Big names like Elon musk and mark Cuban are pumping it up. Yes, Dogecoin is ready to go to the moon.
Why So much Cryptos?
2013 was a dark age for Cryptocurrencies. So many crap coins plagued the land. Exchange rates were fluctuating in thousands. It was like – anyone who knew about C++ basics and Bitcoin talk form can create their own cryptocurrency. It was literally like a race to see who can overtake Bitcoin. But these new cryptos were missing lack of excitement and new perspective.
Who let the Doge out?
On 6 Dec 2013, a new post appeared on Bitcoin talk form about Dogecoin. It was the first ever mention of Dogecoin. It was invented by Jackson palmer and Billy Marcus (software developers).
Dogecoin is inflationary – it means, more doge is printed every minute of the day, giving doge a potentially infinite supply. For example, Consider every minute of the day, 10,000 more Dogecoin are issued. That equates to nearly 15 million doge per day or over 5 billion doge per year.
Yea! You guessed it right, an unlimited cap on supply can negatively impact value over time. But in another way, it is also the most approachable face to cryptocurrencies. Unlike Bitcoin, Dogecoin is not based on libertarian believes. At the same time it is definitely more fun than Litecoin. To sum it up, it has the potential to become a more viable long term cryptocurrency.
The People’s Crypto
Dogecoin foundation welcomed each other and supported everyone who is willing to buy Dogecoin throughout the initial stages. Along with it Dogecoin foundations grew and they were actives members in charity. On 20 January 2014 Dogecoins worth $25000 were raised to take Jamaican bobsled team to Winter Olympics. On March 2014 $55000 worth Dogecoins were raised to sponsor NASCAR driver Josh Wise. Slowly and steadily Dogecoin was coming to limelight.
To The Moon
Elon Musk is a huge fan of Dogecoin. He even purchased some Dogecoins for lil X (his son). April 9 2021 Elon posted a meme about alpha doge against a baby dodge. This is what some people can refer as the catalyst of the monumental rise of doge coin. It grew drastically, like 470% in that one week. That is Insane! I mean, most stocks can never manage to reach 100% growth in their life time, let alone a crypto currency does it in one week.
You cannot simply make this stuff up! (Bitcoin vs Dogecoin)
- Bitcoin is mainly concentrated on top 2% holders but Dogecoin is not.
- Bitcoin’s transfer fee is more than $60 whereas Dogecoin’s stays beneath $1.
- The Block time for Bitcoin transfer is 10 minutes and for Dogecoin, it is around 1 minute. In other words we can do 10 times more Dogecoin transactions than Bitcoin at given time.
- Although the aim of Bitcoin was to introduce a decentralized system, which is free of control of any particular group. But Bitcoin have become a collectable item now a days. With a 21 million limited system where people buy and hold to it make it looks like an investment – not a currency.
- Bitcoin is HUGE! But sorry to say, it is losing its sole purpose of existence. It was suppose to be a currency. What currency does in common is to encourage spending. But what people does with Bitcoin the best is just opposite – collecting. Dogecoin as an inflatory coin, it encourages spending. Like actual digital currency.
- There will be only a limited, finite supply of Bitcoin – 21 million. When it get as far as 21 million, miners will put an end to mining, or then they will ask for higher transaction fees. That looks like a dead end. But Dogecoin is not finite.
- 65% of Bitcoin mining power comes from china. That doesn’t shows signs of a well-balanced system where one country holds that much mining power.
The Next Big Thing?
Dogecoin is designed for everyone. It is far more stable currency. Like Elon Musk said “Dogecoin was invented as a joke. I think there is an argument like fate loves irony. Most entertaining outcome must be the most ironic outcome. The currency that invented as a joke in fact becomes the real currency.” Dogecoin have the potential to go to the moon but it still need a couple of innovations in dogecoin network. Let’s wait and see. What are your opinions regarding Dogecoin? Is this a fluke or is it really The Next Big Thing?