- A Coin to rule them All
Just now·7 min read
Why everything you know about Crypto is being challenged by a meme-coin
Now that Bitcoin and the crypto-market as a whole have hit their teen years, all of the problems with maturity, scalability & other growing pains have become problems of the past. ICO’s in 2016–2017 set the stage for new coins to be invented for their specific use-cases, as well as the invention of smart contracts & DeFi. The future of crypto is nearly set in stone for the top 5 crypto currencies (btc, etc, bnb, xrp, usdt) or is it?
With trends indicating that 2021 will be similar to 2017’s explosive year, alt season is in full effect. With the pandemic accelerating the flow of money printing around the world, governments are kicking the can down the road & the road for fiat is coming to its inevitable dead end. Inflation is the end result, and the theft of a citizens buying power is always the end result of fiat currency
The joke currency
Enter Dogecoin: started as a joke in 2013, dogecoin has seen a meteoric rise since January, going from .0015 USD, to .37 USD today, May 3rd, 2021. The question many ask is why is it increasing since its a “useless” currency and holds no value. Jokes on them because every fiat currency holds no value, but these calls of a bubble, are coming from the biggest proponents of crypto. The fix is in, and the entire crypto market knows that a strong dogecoin, means weaker alts as a whole. In a sense, dogecoin has become the arch enemy of alt coins as the pump pushes toward $1.
But this… Put’s a smile on my face
Dogecoin is much bigger than just a joke, it taps into something more fundamental about the human psyche. In order to understand what I am talking about, one has to understand meme-psychology. As we saw in early January, the rise of GME, AMC and some other stocks made popular from r/wallstreetbets. The result was prices of “meme stocks” reaching all time highs & the reinvention of companies under new management. The effectiveness of a meme is dependent upon how relatable an idea is to its viewers. Memes start off as jokes, and then when people are happy to wager their real money, the meme becomes reality and no longer a joke.
Richard dawkins explains that memes are a form of mind virus, that once the idea enters your brain, you can not stop it. It will be within you, and I believe the ultimate form of this “meme-psychoanalysis” is dog money. Irrespective of one’s race or creed, or even wealth, dogs are in our cultures whether we like it or not. Whether it’s the dog days of summer, we live in a dog eat dog world. As the apocryphal story goes, a hungry wolf walked into a human encampment, looking for scraps, was willing to become a part of a tribe in order to survive. Dogs are a part of our evolutionary history, whether we like them or not. They evolved into the pets we now have in our homes and learned complex facial features in order to cater to humans.
Social media has led the way in pushing dog money into the stratosphere, with communities like r/dogecoin going from 400k in January to 1.6 million in May. The cat is out of the bag, and it’s not a cat, it’s Dogecoin… Since January, when the price first blew up, dogecoin became the most popular crypto on Twitter. The popularity of dogecoin is becoming more clear as the time passes because it is fun, something bitcoin and the rest of the crypto market lacks. The most important part is that this coin is fun, it is the first coin for the newbies who are entering the crypto-space and do not own a wallet but have a Robinhood account. The fact that it is so easy to buy and worth pennies on the dollar allows ease of entry for all investors.
The Doge King is born
The most fundamental support is coming from the most influential entrepreneur of our time, Elon Musk. Who believes in Dogecoin so much that he is constantly referencing it in his tweets, leading to new investors buying into the idea that it can work. As he said himself, “Dogecoin is the people’s crypto” because one does not need to be a “gigachad” to buy it. Although it is important to note that any product being promoted by celebrities should be avoided at all costs, but this one is different. If there is a coin that can go to the moon, who on earth would you trust to do it?
The crypto world talks about lightning transactions, blockchain proof of work, and now proof of stake. But the main problem is that market penetration has left the majority of crypto’s as speculative plays. Many coins do offer revolutionary accounting methodologies and contractual agreements, but if you go outside and ask any regular person about crypto they will stare at you blankly. People care about money insofar as they can buy and sell anything that they want and that their money is a store of value. As popularity increases in the doge, the amount of store fronts and online commerce accepting the popular crypto has sky rocketed, with even Professional Basketball teams and Baseball teams accepting the currency.
Western Union: The OG of gas fees
While many crypto’s boast of having several important and game changing technologies at the speed of light, many suffer from high fees at the moment, whether it is BTC mining operations going down in China, or high gas fees for Ether (NFT BOOM). The main problem a digital currency should solve is low fees, since the early days of money transfers, fees were high because of fraud & friction in a given monetary system. On the other hand 1 Dogecoin is charged per transaction, whether it is $30 million or $5, each transaction is only 1 doge. However, current development has in the works a decrease in the fee structure as the popularity of dogecoin has made it rather expensive given its current price. A joke currency is giving all other alt coins a run for their money.
A World Currency
Many people do not believe in dogecoin, because of its “infinite cap” and for the most part, it is true, the cap is bad if you’re in any other alt-coin. However, the cap increases every year & becomes smaller and smaller with time. If Dogecoin were to work as a world currency, it would need to be able to grow in order to be able to account for economic growth that occurs. This in turn creates a stable currency that does not suffer from inflation or deflation in that price stability will stay constant given that we know what the annual increase will always be, ceteris paribus.
On the other hand, bitcoin at the point when all institutional money get in, and the rest of the world realizes its potential, the price will be infinite and inevitably creates inflation. Causing bitcoin to become a safe haven asset, not a daily spending unit of account. A currency that is usable and cheap will bear the burden of a world wide currency, maybe even a multi-planetary.
Whether this idea makes you believe in Dogecoin or not is irrelevant, as I am writing this, the price has gone to .60 USD & over 69 Billion in market cap, I cannot write this fast enough. Human action is unpredictable, from my work at San Diego State University, HDMA Institute, human dynamics follow patterns that we are now only starting to understand. Since January we saw a handful of meme stocks break the conventional wisdom of Wall Street, and the short sellers went bankrupt because of it. A new era has begun, in the aftermath of an apocalyptic year, the world changed and millennials and gen Z have used their decentralized dollars to charter a new path forward. The value of money is only as valuable as a society believes it to be, it may be the only idea that a decentralized currency can make happen. Dogecoin may have been Satoshi’s wish, in that it was a currency that anyone could use, and not a tool for only the wealthy to hold and not use.
As someone who manages a small family fund, I could not sell Dogecoin to my father who thought the idea was ridiculous. I on the other hand, have been a Doge Hodler since 2014, i didn’t know what it was back then, and I am still unsure what Dogecoin is today or what it will be tomorrow. In January after I saw my Dogecoin become valuable, I put every penny I had to my name into Dogecoin and waited. I told as many people who would listen, and those who did buy their ticket to the moon, those who did not get FOMO and eventually bought in. This is currently the world’s biggest social experiment, and if successful, the world’s monetary system will change. Today will mark the day that Dogecoin was taken seriously & the price will reflect the value once smart contracts & other unforeseen use cases are enabled & the inevitable mass adoption by businesses take effect in the near future.
This is part 1 of series of articles I will write with respect to Dogecoin and crypto as a whole.
- Date of publication:
- Tue, 05/04/2021 - 13:35
Click on the link - it will be copied to clipboard