upstripes | Crypto | Doge coin ramping up the skies

upstripes (35)in #steemhunt • 6 years ago

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Dogecoin recently experienced a significant pump but has corrected on its BTC peg in the interim. The limitless supply cryptocurrency created by Jackson Palmer in 2014 has historically ranged between 50 and 100 Satoshis per coin, sometimes reaching as high as 2-300.[1]

HUOBI CALLS DOGE “HIGH-QUALITY”

Huobi writes in their announcement:

In a dedicated effort to provide our customers with carefully vetted and high-quality trading options, we are announcing support for a new addition to the Huobi Marketplace: Dogecoin (DOGE).

Perhaps intentionally, the team did not announce this news on April fool’s day, when people might have taken that wording for a joke. While some still view Dogecoin as a “joke,” we have previously noted here that the cryptocurrency – based on a meme – maintains a high degree of liquidity and trading platforms.[1]

YOU’D BE SURPRISED HOW MANY PLACES YOU CAN TRADE DOGE AGAINST FIAT STABLECOINS

Aside from Huobi, several other exchanges offer stablecoin pairs for Dogecoin, which enables traders to visualize a fiat value for the crypto. Huobi Global (hbg.com) is the eighth largest crypto exchange by trading volume, as of press time. Trading and withdrawals will begin a few hours from now, at 7 PM PST. You can deposit on Huobi.com and HBG.com.

Huobi.com was previously HBUS, the exclusive US partner of Huobi.

Dogecoin creator Jackson Palmer recently rankled some crypto community members when he went on a bit of a tirade about the viability of Bitcoin and comparisons with other networked technologies, like the Internet, in terms of investment, userbase, and scaling.

Just two days ago, Telsa CEO Elon Musk said his favorite cryptocurrency is Dogecoin – his choice might be related to Palmer helping him deal with Twitter scams some time back. Musk said:[1]

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Meme coin around 69%

According to the announcement, DOGE/USDT, DOGE/BTC and DOGE/ETH trading and withdrawals became available on Thursday at 5:00 AM (EDT). Since that time, Huobi Global has already become the third-largest DOGE market with around $19 million in volume between the three trading pairs (12.2%).

DOGE is now up around 69% since the start of the month to $ 0.003567, giving the altcoin a $425.2 million market cap and making it the 22nd-largest constituent in the AltDex 100 Index (ALT100).[2]

What is Dogecoin?

The Japanese breed of dog known as Shiba Inu was used as the mascot of the project. Dogecoin was created in 2013 by Jackson Palmer as a joke but it is now the 22nd ranked cryptocurrency by market cap. The Dogecoin market cap stands at $414 million at the time of press.[3]

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Almost immediately after its initial release, a community had rallied behind the new cryptocurrency. They raised over $55,000 for the Jamaican bobsled team to participate in the 2014 Winter Olympics.

Since then, the community has grown, and the price of DOGE has skyrocketed. Of course, it’s still worth much less than $0.01, but that’s not necessarily a bad thing.[5]

Dogecoin Fundamental Analysis

There are three primary ways to value an asset:

Use-Value is based on what an asset can be used for.
Exchange-Value is essentially the price at which the asset can be bought or sold at a certain point in time.
Sign-value includes what the asset signifies beyond itself.

Dogecoin is over six years old and remains one a popular cryptocurrency despite a relatively low market cap and price per coin.

The reason Dogecoin is able to maintain relevance lies its ability to display a competitive advantage in each of these three categories of valuation.[5]

Proven Usability

In January 2014—less than two months after Dogecoin was released—Dogesled was launched. Its purpose was to raise funds for equipment for the Jamaican bobsled team to participate in the 2014 Sochi Olympics.

The fundraiser was successful. Over $50,000 of dogecoins were raised and successfully converted into fiat dollars. Other fundraisers have followed in the years since.[5]

Low Price, High Exchange-Value

The highest recorded price ever reached by Dogecoin—on HitBTC was $0.018288 on Jan 8, 2018. It is, however, quite rare for DOGE to exceed $0.01.

Such a low price per coin might seem to correlate with a poor exchange-value. After all, Bitcoin just broke $5000 while many other cryptocurrencies are trading well above $0.01.

Such low values may signify a poor exchange value; however, the exchange value of a currency is not solely derived by its conversation-rate into a fiat currency like the dollar.

The exchange-value of a currency is determined by many factors including

The ease by which exchanges can take place with the currency
The versatility of the currency
Resistance to inflation
Integration into a micro-economy

Given these matrices, Dogecoin has displayed a consistently high exchange-value since its birth.

It has been used for fundraising, tipping across a variety of social media platforms, and within a variety of diverse industries including retail, e-commerce, pornography, gambling, and many others.

Furthermore, with an indefinitely large supply of coins to be mined, Dogecoin displays resistance to inflation. Bitcoin, on the contrary, has a finite supply of coins. Once all bitcoins are mined, the demand for the cryptocurrency could exceed supply.[5]

Dogecoin = Humor

Sign-value may be important than use and exchange. It adds to both. Furthermore, it exceeds them by drawing people’s attention not to the asset itself but to something else.

All cryptocurrencies generally carry basic sign-values. They can signify decentralization, resistance to banking infrastructure and financial institutions, anarchist and anarcho-capitalist ideas, investment opportunities, new financial systems, freedom, a “get rich quick” credos, and may other things.

Much of the sign-values are political, social, or economic.

Dogecoin is different. It is the comic relief to all the social and political bickering and financial investing.

Bitcoin, Litecoin, and other cryptocurrencies lack this comeptitive advantage.

Whether the sign if revolutionary or economic, cryptocurrencies and their communities often seem to take themselves too seriously. Dogecoin does the opposite, and as long as it succeeds as a joke it will probably maintain long-term use-, exchange-, and sign-value.

In short, Dogecoin has various fundamental advantages over its competitors. This does not mean that prices will always, but it does suggest that the adoption of DOGE in various sectors of society appears likely throughout the long-term.[5]