2014-01-14

Co.Labs

Dogecoin Is Now More Popular Than All Other Cryptocurrencies Combined

Are we on the brink of an explosion in minor cryptocurrencies like this one?



A diligent redditor has pointed out that there are more Dogecoin (soft 'g') transactions than all other cryptocoins combined. At the time of writing, Bitcoin, Litecoin--gaining attention as Bitcoin's cheap alternative--Peercoin, and six of the most popular crypocurrencies (there are more than 70) average 3,061 transactions per hour, while Dogecoin trades an hourly average of 3,894. That's more than 93,000 per day.

For the uninitiated, Doge is a dog meme that you had better read up on here. The currency standard was built by a programmer out of Portland and marketing specialist out of Sydney immortalizing the insightful Shiba Inu dog, below, which has become the patron saint of the Doge meme.

Dogecoin didn't even exist before this past December. On December 8, its first day of trading, there were nearly 5,000 unique Dogecoin transactions, which was less than 10 percent of Bitcoin. Dogecoin surpassed Bitcoin trading on December 16, and by December 20, Dogecoin peaked just shy of 200,000 transactions, a weeklong increase of 935 percent.

To those now considering following the doge: The market value is probably not what you're looking for. The latest Dogecoins were traded at about $0.00030, a tiny fraction of Bitcoin's $821 valuation.

Confusingly, there are about 5,000,000,000 more Dogecoins being traded than there are Dogecoins in circulation, and mining will cap at 100,000,000,000. Its market popularity was legitimized right around Christmas, when hackers took off with 21 million coins from the Dogewallet. There's a subreddit for trading and news, another for policing scams. There's a Dogecoin Foundation to promote the use of the cryptocurrency, the actual practicality of which has been seen as dubious by economists.

So how come you haven't heard of it? Carl Miller, writing for Wired, says there will be many more cryptocurrencies coming soon to crowd out Bitcoin:

I confidently predict that the number of cryptocurrencies that are regularly traded and used will radically grow. Their exchange with each other is also likely to grow more intensive and seamless. We might end up habitually using dozens of currencies without noticing, as super-fast transactions allow us to move our money into the currency we need at that time. You might quickly exchange the sexcoins you have left over from last night into bitcoins to pay your freelance designer, devcoins to make a contribution to her open-source project, and a childcoin so your kid can browse amazon whilst they wait.

For as little as people understand the system, it might be time to take this meme's power more seriously. For more on the history of Dogecoin, check out this writeup from DailyTech.

[Image via Kabuso]






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5 Comments

  • Dough-geh, like a Japanese person is pronouncing it, which is the joke ;)

    It might be worth noting that the coin value you quoted is irrelevant. Digital currency is infinitely divisible by nature, designed so that mass distribution and deflation can be addressed by simply moving decimals over. There is no difference between 1 coin worth a dollar, and 100 coins worth a penny, thus market cap becomes the important number here (number of coins in existence * value of each coin). Right now the market is doing ok...$11,000,000+ worth of coins, but like you said, the strength of doge is in it's usefulness, and with more transaction per day than any other digital coin...it seems like people have found plenty of reasons/ways to use it!