If you’re reading this, you probably already know that Dogecoin is becoming quite valuable. The Bitcoin-indexed price of a dogecoin has seen a nine-fold increase since January 2014, when it reached lows around .00000030 BTC per DOGE; today it sits at .00000267, down from yesterday’s high at 295.
The recent surge in DOGE’s value against bitcoins is in part due to the recent controversy in the Bitcoin community over transaction malleability which has caused the USD value of bitcoins to fall. Nevertheless, Dogecoin has been steadily gaining traction over the past month, even before the recent dip in the Bitcoin price. I recently recognized that the DOGE/BTC index has been added to bitcoinwisdom.com in the past weeks, meaning that some fairly influential people believe in its longevity – a belief which represents a self-fulfilling prophecy in a way, as is often the case in this industry: social media rules crypto.
Indeed, the phenomenon of DOGE has puzzled many cryptocurrency “experts” who describe it as one of the most bizarre things to have happened in this technology to date. But I did see it coming, and will flat out admit to the world now (at the risk of appearing a braggart) that I decided to become a dogillionaire by purchasing DOGE in ad-hoc forum exchanges back in December, before DOGE was even on coined-up. I had never done such a thing before that, and to this date haven’t bought any coins in this manner since. I bought them at a very early stage, and paid very little for the coins. Now unfortunately, I am no longer a dogillioniare; I sold them off at the 100 mark in late December for a good BTC profit. But I still called it, and made continued investments since. How did I know DOGE would be a hit?
Look at the bitcointalk.org release of the coin
I cannot claim to know exactly why doge was such a success, but rather can tell you how I knew it would be. There were a number of clues in social media that pointed to a high probability for DOGE success, because it was apparent the coin itself had gone viral. But it all begins at bitcointalk.org. [Disclaimer: I do not consider coins born anywhere other than bitcointalk.org and/or without github repositories to be serious cryptocurrencies. Open source or die.]
Look at the comments that immediately followed this coin’s announcement (which now has over 800 pages of comments, and has been read almost a million times). It was immediately adopted; there was hardly a question of if/whether people were going to develop this coin, but rather a question of distributing tasks and getting things done. It was unanimously decided that this coin was going to happen. The first non-devloper comment below “Someone get a pool going now” really tells the story of how the dogecoin community has worked in the past and still works today.
December 08, 2013, 04:03:14 AM
Someone get a pool going now.
That was the very first comment in the now 800+ page thread. See for yourself that the following comments were positive, only remarking how good or fun this coin is:
…Is this supposed to be retarded on purpose?
…Yes it is.
…This is better than quark
…This made my day
…This is more innovation than stablecoin..
…I got my Doge diggin
…Very Mine! Such Hash! Wow!…Many Block! …Bank Shibe. …On a side note, I am now a DogeCoin Millionaire.
…long time good
…You serious?…Edit: Just laughed for 2 minutes at the coin logo haha
…I much happiness now … I have a big millionaire! … Dogecoin is best very currency, you buy now!
…Why is this so funny, every time I read the name and look at the coin I start laughing like an idiot
…Everybody Why? Much laughing? … Doge very prize nobel economics
Dogecoin was fun, at a time when cryptocurrency was not fun
As I had said on bitcointalk.org as well as /r/cryptomarkets, dogecoin came to the scene at a time when Bitcoin was experiencing a 1000% price increase, as it does from time to time. The discussions on twitter I was having with some influential people were becoming quite nasty (and sometimes frightening), especially with regards to altcoins. This was turning me off to cryptocurrency – something I had previously found to be a fun pastime. You can even see the burnout in the data of this blog…if you look at my post frequency.
Enter DOGE. Dogecoin was the first coin that seemed to admit to the arbitrary economic magic numbers inherent in all cryptocoins. It was a satire of cryptocurrency itself, poking fun at all other altcoins at the time which promised great profits on investment. It admitted to the hallucination that is cryptocurrency. It even went as far as to advertise a ponzi-scheme dogecoin game with the release of the coin.
The coin was released with many services already in place – i.e. the developers did that right. But since the coin was so much fun to look at and play with, there was additionally a flurry of activity by open source developers following the release of this coin. Moreover, since the concept took advantage of a popular meme, it was fun for hyperactive twenty-somethings (myself including) to Photoshop designs as humorous advertisements. This gave dogecoin a legion of marketing specialists free of charge, who proceeded to plaster the web with DOGE propaganda. Why? Because it was funny.
To. The. Moon. Many thanks. D7FnRc9EVjo9SdNwSMGdRDhNJfEU42sNxo