The sudden and endless rise in Dogecoin’s price has prompted analysts to find the causes as well as the consequences of this growth. In the meantime, Adam B. Adam B. Levine, editor of the Quin Desk website, points out some interesting similarities between Dogecoin and Bitcoin.
The rest of the text is from Adam B. You read Levin.
For those who have been in the industry for a long time, the Dogecoin is a strange and mysterious phenomenon; Because while being deprived of most of the features that make digital currencies valuable and useful assets, it is highly attractive!
Dogecoin was developed in 2013 by Jackson Palmer and Billy Markus; But its founders (unlike its supporters) abandoned it years ago. Until recently, Dogecoin was in such a weak state that it could not even provide its own blockchain infrastructure, and in 2014, an older digital currency called LightQueen (LTC) was transferred to the Blockchainchain.
At the time, this seemed necessary. At the time, there were even doubts about Dogecoin’s ability to continue working, and many predicted its permanent demise. But things did not go as expected, and a few years later, on Friday, April 16, Dogecoin was able to overtake its host Blockchain, LightQueen.
At least so far, the total market value of Dodge Coin is more than double that of Litecoin and the 330-year-old Barclays Bank. What is happening?
Capital protection; Concern of most people in the world
A few years ago, I did a series of interviews with people in Iran, India, Singapore, Honduras, Nigeria and a few other places. My guess was that bitcoin would not be their currency of choice; Because the transaction fee in many cases is higher than the overnight salary of the citizens of these countries and in general, is not consistent with their traditional standards.
But I found that despite all these facts, people still considered bitcoin to be their best choice, which in itself helped to strengthen the bitcoin performance cycle, and we are seeing the consequences today.
Such decisions are the result of a simple question: Which of all the currencies I have access to is the most useful to me?
In the case of Bitcoin, there are two features that make it useful. The first feature of bitcoin is its predictability. People are turning their local currencies into bitcoins because they are looking for a way to protect their capital from the effects of political and economic events. Everyone knows that the supply of bitcoin is fixed and its monetary policy is largely unchanged, making it out of the reach of governments.
Another reason that may be even more important is liquidity. People want to make sure that when they decide to sell, there is always someone to buy their property at market price.
So, while the price of bitcoin may be very high for some people, it is also an agreement reached among members of its community.
Of course, people can also choose other tokens to buy. As you can see, there are a lot of tokens available to people today and their number is increasing day by day; But the issue that can make some of them difficult to operate is the “consensus.”
For these currencies to succeed and thus increase their value, a collective agreement must be reached to buy them. In other words, these currencies must have unique characteristics that are attractive to a particular group of people in the community or link certain people to each other. In the case of bitcoin, the two factors mentioned earlier, in addition to the popularity that bitcoin has gained because of being “first”, have contributed to this success.
Now we can return to the main topic of our discussion; Why is a currency like this growing like Dogecoin? And what factor or factors have led to the sudden and high popularity of this currency?
Why is Dogecoin growing?
This year, I came to believe that Dodge Coin has a similar function to Bitcoin. Just as Bitcoin is the common choice of people looking for predictable currencies, Dodge Coin is the collective choice of those looking for jokes, entertainment, and the spread of “meme culture” in society and even in the world of digital currencies.
Memes are cultural ideas that spread rapidly in societies and become so-called “viral.” The advent of the Internet and (apparently) increased sense of humor in humans has made this culture more popular in today’s societies.
This seems to be true of Ilan masks, slim gimmicks, and Cuban brands around the world.
The same issue was addressed at Conagra Brands’ earnings reporting meeting earlier this week. Konagra is a US-based supermarket and packaging company that supports a variety of brands and is not a new, modern company; But when it came to the company’s recent success, the CEO cited his team’s strategy to “engage with Dogecoin” as one of the key successes.
Dogecoin has doubled Slim Jim’s Twitter followers and increased its engagement with the food brand by more than 500 percent. Slim Jim CEO Sean Connolly attributed much of his success to the Dogecoin community, saying they played a “big role” in Slim Jim’s eventual victory over other brands in the Adweek business magazine.
Dodge has become a joke; A joke that everyone wants to contribute to, and that multiplies the price of this token. In fact, Dodge Coin, like Bitcoin, has entered a self-reinforcing cycle; With the difference that this cycle is formed only for entertainment.
This process may end very badly; Because many people who are buying Dogecoin at this price do not know the true story. As we have heard many times, the wind blows the wind. Dogecoin seems to have become the gold standard for prank currencies; But at any moment it may expire.