The Shiba Inu (referred to as Shibe) is a dog breed known to come from Japan. In 2013, a meme of the Shibe dog became popular across the internet at a time cryptocurrencies were also heavily coming into light in the public eye. An Australian marketer, Palmer saw an opportunity to test the newest sensations on the internet by combining the name of the meme, ‘doge’ and cryptocurrencies to prove a fool theory. The start of the cryptocurrency saw life when another ‘joker’, Billy Markus, an engineer from IBM, connected with Palmer to create DOGE. The results so far have been successful to say the least but future prospects seem to fade for the Dogecoin.
In the section below we look at some of the ways DOGE, a coin started with a joke, ended up being worth $2 billion at some point.
The Bitcoin effect on Dogecoin joke
Dogecoin blockchain is a copy and paste protocol to Bitcoin’s open source code with changes to the words; ‘Bitcoin’ for ‘Dogecoin’ and ‘mine’ for ‘dig’. The other major difference lies in the ‘digging’ – a dog digs instead of mining – where a total of 100 billion DOGE were set for mining instead of 21 million for BTC. The mining of DOGE was also made much simpler with the total number of coins already mined.
All this was being done as a joke hence the inflated number of coins and quick mining. This made it possible for the distribution of DOGE to many users as airdrops leading to tipping. Given that one USD could buy over 300 DOGE coins, they were deemed valueless at the time. Reddit users created a tipping bot that required only a comment to tip DOGE. This drove up adoption across the crypto communities on Reddit and price also rose as a result due to demand.
Bitcoin not only affected the technology behind Dogecoin but also the overall price and value. Looking at the charts in the last few months since the year began, anytime BTC’s price moves sideways (no sharp upwards or downward movements), DOGE on average gains 2.5% while sharp movements in BTC’s price causes a positive correlation to DOGE price.
Currently, DOGE trades at $0.002910 on major cryptocurrencies in the world with the daily volumes traded at $8,668,836 USD worth of DOGE. The coin is placed 35th on the Coinmarketcap rankings with a total market capitalization of $336,314,966. The slight 1% increase in price in the last 24 hours comes as the market turned green at the start of Saturday 4th August 2018.
Every cryptocurrency has a story behind the idea, whether it’s to transform the world in its blockchain technology, to offer safer transactions, for private and anonymous payments etc. DOGE backstage story beats the rest starting from a joke to one of the most valuable cyptocurrencies in the world. The early adoption driven up by Reddit users or the sideways price correlation with Bitcoin, DOGE was able to rise but the lack of mass market prospects of adoption may well cause the downfall of the ‘Shibe’ cryptocurrency.