The crypto scene is for its fast pace known new Blockchain projects sprouting like mushrooms from the ground, other stars in the crypto heaven and burn up just as quickly as they are risen. In our series “What is…?”, we want to deal with us on a regular basis with projects to which it has become in recent times a little quieter. We want to understand how the current state looks like and whether we will hear in the future may be more to the topic.
Today, we have an old favorite of the crypto-scene rise again: Dogecoin
As the Bitcoin White Paper in 2008, was published for the first time, knew the least, that it should be currencies within five years, to be a role model for many other Crypto. As one of the first so-called Altcoins Litecoin was presented as “the silver to bitcoin’s Gold”, the other based on the Bitcoin Blockchain and put on crypto projects. This veritable Boom also called fun birds from the early crypto scene who wanted to take the entire Ecosystem a little on the Arm. For this purpose they founded a short-hand their own Cryptocurrency: Dogecoin.
Dogecoin – short-DOGE – was actually intended as a pure parody of Bitcoin, Litecoin, and the General Hype that seems from today’s perspective, almost ridiculous. Since the Coin was, however, like all other listed crypto-currencies, freely tradable, started crypto users soon to trade him as well. So he developed in the wind to one of the Altcoins, of which he was supposed to hold the mirror. Nevertheless, he stood out due to its special Use-Case and some of the fun Features from the gray Altcoin-mass.
Dogecoin is based on the just mentioned crypto-currency Litecoin. As well as this, the Coin uses the Proof-of-Work Mining algorithm, albeit with the much faster block production time of one Minute per Block. The cartoonish nature of the crypto-currency underlines, meanwhile, the Icon. Based on the Internet phenomenon of Doge, which circulated at the time and the crypto-currency gives it its name, adorned with a Shiba, the front side of the coin. The Japanese breed of dog was and still is a popular motif for Memes with captions such as “Much…” ” … ” or “Wow”.
Why so serious?
After the new Coin became immediately immense popularity, he was already a few weeks after its inception in December 2013, the currencies of the largest listed Crypto. Within just two weeks, the DOGE’s stand on 15th place on Coinmarketcap, after a good two months, it had managed to the Coin for the first time in the Top 5. It had a market capitalization of more than $ 60 million. Until the middle of 2016, it could create the Coin then actually, to keep themselves in the Top 10. After that, it went rapidly downhill.
In January 2017 DOGE flew again for the first time out of the Top 15. This was less due to the declining popularity of the Coins themselves – the market capitalization of Dogecoin remained in the course of the year, largely constant – but the overall development of the crypto market. Led by Bitcoin and Ethereum and the crypto-Business became increasingly adult, and serious – no place for a Spaßcoin. To continue to play a role that is missing Dogecoin in the age of DAOs and Smart Contracts are simply the Use-Case regardless of the hard core that holds the crypto-currency more Loyal.
There is still a future for Dogecoin?
Already in February 2017, we asked the question: “is Living in the old dog yet?” In fact, the said dog put down after a few jumps. Thus, it was possible the Coin, once again, to beat the old best brand in terms of market capitalization. At the beginning of January, to record point of the crypto market, cracked he even momentarily to the limit of 2 billion US dollars. It was thus in the light of the market situation, however, only just under the Top 30 Coins. At the time, he is ranked still in the Top 50.
On the other hand, Dogecoin will be for the foreseeable future, a follower of the market. The Developer Team of Billy Markus and Jackson Palmer has update for more than two years of the system. Currently, there are no signs that this could change in the next time. The Dogecoin technological base to provide users in the modern market. The mere Parody of the Bitcoins he’s not. So the Coin will continue to be tradable – even more crypto-history he is writing. An old dog you can teach no new Tricks.