Dogecoin has been making waves recently among the ever increasing list of crypto-currencies, which includes some popular ones like Bitcoin and Litecoin.
What started as a twitter joke which the creators, Jackson Palmer and Billy Markus, thought would “fade out within a few days” is on its way to becoming the next big Internet sensation or will it become another bubble caught in a whirlwind boom?
Within an odd six to seven months, the market cap of Dogecoin has reached $100 million. So what is the reason behind it’s success.
One reason is accessibility. Bitcoin is really expensive, around $445
at time of writing and therefore, most people just cannot afford it. The second top crypto-currency, Litecoin, costs about $10. Comparatively, the current dollar value of Dogecoin is less than a dollar, which makes it a perfect alternative for small purchases and dealings. The probability of people owning Dogecoin is higher than any other crypto-currency. If you have to pay anyone a dollar, using a few Dogecoin is a better option than Bitcoin or Litecoin. Ease of access is a main contributing factor here.
Dogecoin is getting community support in a way which other crypto-currencies have been unable to achieve. People seem to ‘click’ instantly when it come to Dogecoin. Its relationship with meme fueled its initial growth and the community support grows every hour. From hyperactive Reddit threads
to its sponsorship of NASCAR driver Josh Wise, Dogecoin is cropping up everywhere.
But, will it last? We all know the how Bitcoin fared. It started at $15, climbed to $1200 and now the price has fallen drastically. The Bitcoin bubble looks good for speculation but can it last? And what does this mean for Dogecoin buyers? Are they going to take a similar ride? The chances are it will probably follow a similar market graph.
Doubters will doubt. Some skeptics call it the next big internet fraud or a fake internet currency. While the Dogecoin makers surely want to turn it into a mainstream internet currency. However, if you base your analysis on the past history of crypto-currency market trends, the same fate might befall Dogecoin – making it the next great investor bubble, which will move it out of the hands of the community that is currently supporting it.
However, the success of any crypto-currency depends on its user community and right now, the Dogecoin community is rocking.
Cointelegraph is keen to hear your thoughts about the future of Dogecoin: is it the next big crypto-currency? Will it turn into a bubble? Or will it keep going as a hobby currency for a cool community?