An Execution of Blockchain: Dogecoin
There once was a guy on the net
Whose friend offered him a nice bet:
Make a coin with a doge
So you’ll never be broke!
And now for coins the guy is all set!
There once was a Shiba from Japan
Who dug as much coin as you can
With a bark and a yelp
From his friends he got help
But for begging he received just a ban
On the web they mine coins just for fun
Where GPUs run as hot as the sun
But neither Bit- nor Lite-
Are the coins in their sight
These folks they mine doges one by one
I know I should stop. But I won’t.
A cute puppy who was no buffoon
Asked his mommy “What is the moon?”
She thought for a while
And with a wink and a smile
Said: “That’s were we will be soon!”
This short poem is strangely connected to a coin that is sort of familiar in the cryptocurrency space. The Shiba Inu (reffered to as “a Shiba from Japan”) is the dog that is represented as the face of the Dogecoin. With a market cap of over 1 billion USD this is not a random coin also even though it was created as a “joke currency” in 2013.
The reason I decided to even mention Dogecoin in these set of pieces highlighting the impact of block-chain technology and why block-chain is even so talked about now is to put out some numbers showing just the financial interest in cryptocurrency. I do not want to give off the impression that Dogecoin is not revolutionary , however, because it too is a decentralized, peer-to-peer currency just like Bitcoin. On the other hand, I do want to show why a revolutionary technology invented over half a decade ago is only in the headlines now to address the concern shown on twitter (Jeremy_T0rres).
In January 2017 Dogecoin had a market cap of around 24 million USD, and a market cap of 300 million USD in June 2017. Now at the end of the year Dogecoin has a market cap greater than 1 billion USD (valuations are from coinmarketcap.com). This means that anyone holding Dogecoin throughout the whole 2017 would have returns over 41x (turning a $1000 investment into $41000). This follows the trend of the whole cryptocurrency market in general which has had an exponential growth in value through 2017. All of this growth gave cryptocurrencies (even silly coins like Dogecoin) lots of attention.
Although more money being inserted into the cryptocurrency space leads to more attention, I believe all this attention is not positive and is taking away from the actual value block-chain technology can have. Overall though this attention should eventually help the cause.