My 2 Bitcents; Dogecoin Pump! And why $1 of Dogecoin is worth more than $1 USD — August 31, 2018

Gabriel Sukenik
Aug 31, 2018 · 2 min read
Much Pump, Such Wow!

Well, the big fun story of the day in my mind is definitely the Dogecoin pump (up ~50% today). A coin that doesn’t pretend to be anything other than a silly & fun version of Bitcoin, Dogecoin has been around for many years now. Nocoiners that can’t wrap their minds around why Bitcoin has value, must really struggle when it comes to Dogecoin. A bitcoin copy-cat, but with different font for their whitepaper, and a shiba inu dog mascot?!

“What in the world did I just watch, and how is Dogecoin not worth $0?!?!?” -Nocoiner

But regardless of how Nocoiners (or Bitcoin maximalists) might feel about it, Dogecoin now stands at a total market valuation of ~$515 Million Dollars.

When I’ve spoken to people about this pretty funny monetary phenomenon, and tried to explain/rationalize it, I’ve relied on a bit of a puzzle & thought experiment: What is worth more, $1 USD or $1 worth of Dogecoin?

It’s something to consider for Dogecoin, or any other altcoin for that matter. And in my mind, the answer is clearly that I’d prefer $1 of whatever coin someone was offering! And why is that? I’d always have immediate and instant liquidity to trade $1 of Dogecoin for $1 of Bitcoin. $1 USD in a bank account, or Venmo, or a bill in your hand can’t get immediate & instant bitcoins in your wallet, necessarily.

So whether you’re considering Litecoin, Dogecoin, or Coin #274 on CoinLib.io (shoutout to Coinlib!), altcoins can be treated and valued as Bitcoin derivatives (exchangeable for a variable amount of Bitcoin at a future date). And this is just as applicable to smart-contract enabling coins like Ethereum or EOS, or governance coins Dash or Decred, or silly fun tokens like Dogecoin & PickleRicks. And instant liquidity for Bitcoin, is definitely valuable.

It’s tough for people and the market to figure out what the price of a lot of these coins are (bitcoin included!), but it seems like … the answer isn’t $0 …

Gabriel Sukenik

Written by

CEO of MorphToken.com, Bitcoin & Cryptocurrency Advocate, sort of funny

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