It’s hard to imagine a more unlikely representative of the crypto world than Dogecoin. A thematic cryptocurrency based on a Japanese dog, which was born as a joke by its creators, and which today is one of the protagonists of the crypto-asset market. However, despite the increase in its price, many consider that the virtual currency has no real value so it will eventually collapse. Therefore, today we discuss whether Dogecoin is a joke or the future of the crypto world.
The contradictions of the crypto world
One of the best examples of the many contradictions that exist in the crypto world is the rise of Dogecoin. And it is that, the virtual currency has not increased its price alone. If not, it has done it as part of a broad bullish movement in the crypto market, which has allowed the growth of other cryptocurrencies such as Bitcoin, Ethereum and Binance Coin.
However, while BTC, ETH, and BNB are internationally recognized as top-tier cryptocurrencies. With obvious utility and strong communities supporting its development. Dogecoin is the opposite, a joke coin based on the Japanese dog Shiba Inu, and designed by its creators as an intellectual exercise.
Thus, when the crypto community has reached its highest visibility so far, with dozens of institutional investors and large traditional companies entering or considering entering the crypto world. The focus is not only on the main cryptocurrencies, but also on a virtual currency that many would prefer if it did not exist.
Dogecoin is more than meets the eye
However, it is no coincidence that Dogecoin is the twelfth cryptocurrency in the world according to CoinMarketCap, with a market capitalization of 7,000 million dollars, and an increase in its price of more than 1,000% so far in 2021. Well, although not have the cachet of Bitcoin, Doge is a great representation of the way the crypto world works.
And it is that, the value of cryptocurrencies, and of all money in general, arises from the social beliefs of the people who use it. Whether it’s a printed piece of paper that we buy goods and services with, or bits on a Blockchain, fiat money and cryptocurrencies only have value because people believe they do.
For that reason, when a cryptocurrency like Dogecoin, abandoned by its creators to its community, without any type of financial institution behind, and sustained solely by its users, increases in price, we can see here an example of the decentralization to which they aspired and members of the crypto world continue to aspire.
This does not mean, far from it, that Dogecoin should be the cryptocurrency model that is consolidated from now on. However, when a community strongly believes in the future of a cryptoasset, regardless of its origins. Without a doubt, it is a phenomenon that is worth analyzing, and not dismissing out of the blue.