Dogecoin: would it survive a crash of the cryptomarket?
I had a short discussion with @lukebrn about Doge and Doge surviving a crash of the crypto market. In his well-written article he has mentioned that Doge would not survive a crypto crash.
Let me put first that his reasoning is correct. No question about that! But I would like to differ. Discussion and interaction makes steemit great and better.
What’s Dogecoin?
Dogecoin started off as a parody to the cryptomarket. The founder (Jackson Palmer) brought Dogecoin (inspired by the internetmem Doge) to the market in 2013, wanting to prove that people where buying everything in the crypto market. (Yep even then!) Dogecoin was created by Billy Markus and based on Luckycoin. It should have been some kind of internet tipping coin.
There hasn’t been an upgrade of the software since 2 year. So I assume that it is an abandoned project.
Why are people bying it?
I do think that it is a mixture from new people stepping into the cryptomarket:
• Willing to gamble on a low priced coin (don’t knowing that the price of a coin is also related with the supply. There are already 112B doges circulating)
• Thinking that it is better to have 10000 Doge instead of 0.01 BTC.
• Combined with FOMO people.
• It’s the year of the Dog in China!!!
I have to admit that one of my first investements was also Doge. That was, when I was buying coins without research. I luckily got away with a small profit.
Due to these people Doge reached an all-time high on the 9th of January of $0.018746 good for a market cap of over $2B.
Recently is has been dumped an currently the price stand on $0.011 something.
The positives
Doge is:
• Fast
• Cheap
• Decentralized
• Easy to use
• Has low transfer fees
• Almost available on all major exchanges (There are 400 markets listed for Doge on CMC and there are probably more)
The bads
• The project seems to be abandoned
• There is no real use case scenario
• It is meme coin
Will it survive a cryptocrash?
No there is no real use case but according to me there is.
So my answer to the question above is YES.
Dogecoin is one of the cheapest and fastest way to transfer between exchanges. Almost all exchanges accept them and as long as there isn’t a big price difference between the exchanges, it could save you some bucks and time when transferring virtual money.
This is according to me why Doge may and should survive a crash.
Do the math for yourself and see if you can spare some bucks when transferring funds between exchanges.
What are your thoughts about this?
Cheers,
Peter
The use cases:
The market finds some value on Doge.
It is true that Doge started as a joke and has been considered a "junk"coin for most of its existence.
It is also true that Doge doesn't serve any purpose other than as a store of value.
And yet, where most other altcoins have foundered and faltered, Doge has made it through the years relatively unscathed. The reason as you have so rightly pointed out, is due to the fast transaction time, relatively low price and transaction fee, and its prevalence in the crypto-verse.
Doge will survive as long as people continue to trade on exchanges.
Thx