Dogecoin has been a favorite cryptocurrency for many over quite some time all thanks to its low price and a robust community. It’s no secret; cryptocurrencies priced below the $1 mark have been a go-to investment option for most newcomers into the industry. But for Dogecoin, also known as the parody coin, the story has mostly revolved around ridiculous speculation from gamblers looking to pump up the price and make a quick buck from the parody coin.
Jackson Palmer, despite being a founder of Dogecoin, maintains a pretty realistic view of the coin. To him, Dogecoin is nothing more than a “joke currency.”
Obviously there is a good number of crypto enthusiasts who would like to think otherwise and even though there is a group of developers who are currently helping maintain the Dogecoin project in their spare time, one of the most important questions anyone investing in Dogecoin has to ask is whether this joke coin should be taken seriously or should it remain a joke.
Is the price of Dogecoin based on Delusions of FOMO
Jack Palmer has constantly reminded everyone interested in Dogecoin that its main purpose was to be a “playful joke”. In fact, Palmer left the cryptocurrency space sometime back as a move to detoxify from the cryptocurrency craze that saw wannabe investors and entrepreneurs launch or invest in cryptocurrency projects with little knowledge of how the industry works.
According to Palmer, the crypto space had, at the time, hit a public image snag of cryptocurrencies who’s main purpose was unclear yet hitting unexpected milestones in terms of market capital. According to Palmer, new investors into the crypto space are reacting out of FOMO in a bid to make a quick buck on price volatility.
True to his words, Dogecoin hit an all-time high market capitalization of close to $2billion early in the year and even though Palmer eventually returned to being active in the crypto space, Dogecoin has not been the only coin that has led to rising concerns of a bubble. Bitcoin has also seen abnormal price growth and volatility with its price going down from a high of almost $20,000 at the beginning of the year to its current market price in the $7,000 region.
At this point, the market is bearish and most people are starting to realize that the scaling problem with Bitcoin is common for most if not all cryptocurrencies. Most crypto enthusiasts have moved from looking at Bitcoin as a currency to a store of value. However, if Bitcoin which is the top cryptocurrency is having such complex problems, is it reasonable to expect much from DOGE?
Can DOGE be more than a joke?
Well, so far Dogecoin has survived years of ridicule and currently, there is a team of developers who just won’t let the joke coin die a natural death. Is that a good thing? Well, considering how the project has pivoted from a joke to an open source peer to peer digital currency, there is a reason to say that the DOGE is here to stay. The best part about Dogecoin is the community. Dogecoin fans have grown into a tight-knit community of crypto enthusiasts who have participated in helping one another as well as contribute in a variety of charity projects. Given that the Dogecoin mascot is likened to a Shiba Inu dog that was adopted as an act of charity it’s amazing to see that this community-driven initiative is still the backbone of the DOGE. How far does the joke go? Well, nobody knows.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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