In a world run by memes, Doge looks to take the crown as the biggest meme of them all. With its adorable mascot, celebrity backing and die hard loyal community, Doge is destined for greatness despite being designed as a joke. For full transparency, I don’t own any doge coin, nor am I a financial advisor, buy Doge at your own risk.
What is Doge Coin?
Dogecoin is an open sourced cryptocurrency created in 2013 by Jackson Palmer and Billy Markus. It’s origin is based on the popular meme of a Shiba Inu(a Japanese breed of dog) and the technology behind it is based on Litecoin which is based on Bitcoin. The main issue individuals have with Doge coin in comparison to crpyto’s like Bitcoin is that the supply is not fixed for Doge coin. Bitcoin’s supply is capped at 21 million bitcoins which will be completed in 2040, Dogecoin on the other hand has no hard cap as of right now and 6 billion new dogecoins are created into existence each year. This worries a lot of people as the creation of dogecoins with no hard cap means it’s an inflationary asset that loses value over time, for it be a solid investment, the buying would need to be greater then the supply for year and years to come. How can doge beat what appears to be an endless supply? The only way is through strong viral adoption.
The Power of Memes
The rise of stocks like Gamestop, AMC and Nokia were the beginning of the power of the internet community and the power of memes in the financial world. Hundreds of thousands of people gathering together to get behind a single financial entity had never been done before to such a high degree. This singular moment in history, has and wil8thl change the financial industry. Many individuals, for the first time in their life, were introduced to the stock market and then also discovered cryptocurrency. This led to Dogecoin’s reddit community almost tripling itself in 2 weeks, going from less than a cent in late January to 8 cents as of February 8th.
All of this is to show the power of memes. Memes are defined as; “an element of a culture or system of behavior that may be considered to be passed from one individual to another by nongenetic means, especially imitation.” Despite what Doge’s haters say, it has value from the fact that it is being adopted as 1. a huge meme and 2. “the people’s crypto currency”. Millennials and Gen Z live on the internet, their main form of communication is memes. Although there’s no way to exactly measure this, memes do have intrinsic value. They are internet cultural staples that are commonly used as a form of communication between friends and friend groups. They are widely shared and therefore, become widely known. Doge is no exception to this. It’s value is derived from its community and loyal support, as that loyal support and community builds, the pull to join the community becomes stronger and harder to ignore. Put in other words; this is Metcalfe’s Law.
Metcalfe’s Law is defined as “that the value of a communications network is proportional to the square of the number of its users.” Essentially, as more people buy into instruments like Bitcoin and incidentally Doge, the value goes up, drawing in and forcing people to join in as well. Similar to how a business is strongly incentivized to use social media as more people use social media. Money is the biggest social network in the world, and crypto and blockchain are revolutionizing it. There will be several staples in the crypto sphere, Ethereum or Cardano may be the new Amazon, Bitcoin the new Gold, and if Doge truly becomes adopted as the “people’s crpyto”, well then, 1$ is just the beginning.