Author

Topic: [ANN][DOGE] Dogecoin - very currency many coin - v1.10.0 - page 1098. (Read 3099993 times)

sr. member
Activity: 322
Merit: 250
So will Doge will always be a shadow of itself? "doge was once 200 satoshi". Or it will go up again? And how can it go up without the novelty hype?
sr. member
Activity: 350
Merit: 250
full member
Activity: 210
Merit: 100
Crypto News & Tutorials - Coinramble.com
Quote
DOGECOIN: A (Potentially) Superior Crypto


Here are some of my recent thoughts on dogecoin. The challenge I was trying to overcome was: "Why would I, as a rational participant, participate in dogecoin instead of litecoin?" In a world where a new crypto can be created in any given moment (and many are), this is a fundamental question for any "coin."

Litecoin is obviously the closest comparison to dogecoin, closer than bitcoin, but I might use bit/lite interchangeable in the following paragraphs. I am by no means "new" to cryptocurrencies, but I am not technically proficient and everything I say may be blatantly incorrect. So!

What distinguishes one coin from another? Why would a meme-based joke coin have inherent value of billions of dollars (let alone $.0001?)

COMMUNITY:

Like a social network, a key factor is adoption. If people use and value a coin, it will be valued and used.

But this is an intangible factor, as well as a chicken-or-egg. Do people adopt the coin because it is superior, or is it superior because it's adopted?

No matter what, however - and especially in the case of a currency - adoption is necessary for any given coin to succeed. A coin only exchanged between two parties can hardly be called a successful form of currency.

The manifestation of adoption is "Community," and dogecoin's community is not just strong, it's of a fundamentally positive, carefree character. It is generous and - so far, at least - a strong tipping culture. The community (generally speaking) is supportive, rewarding, mutually beneficial, and naturally produces content that benefits the dogeconomy and, in turn, the participants in that economy (affectionately called "shibes").

But is community enough? It can't be! It is too transient. There is no fundamental reason for a community to simply migrate from one service/economy to another, if the barriers of entry are otherwise non-existent. What unique properties retain participants (maybe "users" is a better term), as well as attracts them? "Community" itself is not a coherent explanation. There must be more - call these community-independent benefits "real values."

Fortunately, I think dogecoin does have real value, and could have considerably more. These values distinguish it from all other current coins, including bitcoin and litecoin. The values I suggest may not currently accurately represent the technology, in which case they are proposals and not assertions. As I said, I am not entirely competent regarding the technology here.

MASCOT:

One of these values - and a somewhat "intangible" one, like Community - is Branding. While this applies to the marketing/presentation of dogecoin at large, I am using it to refer to one specific concept - the mascot.

The round-faced Shiba Inu that forms the image of "Doge" itself has (in my opinion) the potential to be a globally recognizable and universally appealing icon of the 21st century. In other words, Doge could be for dogecoin what Mickey Mouse is for Disney, Mario is for Nintendo, and the Golden Arches (or Ronald) are for McDonalds.

Although the examples I listed are the results of corporate interests, a mascot does not necessary have to be a device to generate wealth. However, a good mascot - a "face" - is precisely the thing that every other cryptocurrency lacks, especially bitcoin and litecoin.

I think this iconic figure - DOGE - is key to another concern for doge: how do we outlive the meme? Many memes are flash-in-the-pan phenomena that (presumable) are incapable of retaining long-term appeal. Critics have raised this concern, rightly so, regarding dogecoin.

The DOGE mascot potentially alleviates these concerns. It transforms the transient nature of a "meme" into a universalizable (but also uniquely representable) "icon" which is no more transient than Mickey Mouse or Mario have been in the public consciousness.

DOGE as mascot has already began development - it is the literal face of the coin, after all - but I believe more targeted efforts towards establishing the most marketable and recognizable version of Doge will provide lasting benefit to dogecoin itself.

INFLATION:

"Branding" is a fairly intangible factor, however, and subject to the whim of the community. No matter how good our branding may be, it may just lose its effect.

This is where the truly technical factors come into play, and I believe the most important - and exciting - opportunities lay for crafting a superior coin. This is also where I may be entirely mis-informed.

Essentially, dogecoin is inflationary.

Bitcoin and litecoin are almost universally rejected as currencies because of their low fixed limits (and entropic nature) make basic modern economics impossible. On a macro level, it encourages hoarding and destroys the loan/credit system.

What it does well is create artificial scarcity, which, in the case of something like a commodity, is valuable. That is perhaps how bitcoin has such value; not because people desire it as a currency, but because it is considered a store of value/speculation vehicle, which results from its deflationary nature.

But deflation is simply not acceptable in the modern global economic consensus (sources needed, for sure). And bitcoin and litecoin were specifically designed to be deflationary. That is an insurmountable hurdle.

Dogecoin is different. It's cap is way higher - which makes it more accessible and encourages spending, I think. But more importantly, the "hard cap" doesn't really exist - as I understand it, the current protocol allows for indefinite (if not small) block rewards for miners.

If this understanding is correct, I believe this built-in inflationary is the single most desirable aspect of dogecoin as a currency. It may mean the value of dogecoin may not reach gold-market levels (because that wouldn't make any sense), but it would mean the far more important thing - that it is a sustainable and functional solution for global transactions.

For example, without true utility as a currency, something like bitcoin or litecoin can only achieve value as a speculative commodity, and that can only go so far - and is built on thin air. However, with true utility as a currency, dogecoin could attain a "market cap" equivalent with any other currency - like the USD - as well as grow with the global economy in time, sustained not just by its perceived value, but by its actual long-term utility.

Despite the USD's inflationary tendencies, it still has immense "value." Dogecoin would be the same way.

(Any real economists out there? Are my distinctions between deflation/inflation, commodity/currency accurate?)

COST EFFICIENCY:

Now I'm really getting ahead of myself, but I think the inflationary tendencies of dogecoin have an implication on another area of concern.

Integral as they are to the protocol, I don't like the following aspects of cryptocurrencies (bitcoin): universal transaction fees, long confirmation times, and unwieldy blockchains.

Transaction fees in particular are terrible in my opinion. They are fundamentally necessary to the bitcoin network, especially when block rewards stop, and I can't understand why anyone would be comfortable paying a fee on every single transaction.

It is bad enough paying $.07 for every dollar I spend buying goods or services in America as sales tax. To think that simply handing my friend a dollar would cost money, however "trivial" that cost (fee) may be, is absurd.

Thus I would hope for a currency that minimizes - if not removes - universal transaction fees altogether.

And this is where I think an inflationary currency could help - the need for incentivization for miners that transaction fees provides could be mitigated by eternal block rewards.

In other words, a superior currency would have low/no transaction fees.

My other two concerns I am not sure how to fundamentally solve, nor confident that they can be solved, or if dogecoin would be the protocol to solve them. But I suggest that the superior crypto will be the one that does so.

Faster confirmations - in the real world, having transaction confirmations take an indeterminable (and often lengthy) amount of time is simply unacceptable. It should be possible to instantly verify a transaction - faster than a credit card processor, if not as fast as handing someone cash.

Efficient blockchain - this is actually where I foresee the greatest negative for dogecoin. Many small transactions of billions of coins means that the blockchain will grow to a size that, although possible for up-t0-date computers to handle, is prohibitive to a large amount of the population, and detrimental to the accessibility and functionality of doge.

The blockchain - at least on the user's end - needs to remain as efficient and unobtrusive (while still remaining totally functional) as possible.

I am not sure how to solve this - other than doing many transactions off the blockchain, like /u/dogetipbot services provide (and likewise involve a large trust factor that renders the protocol unnecessary in the first place) - but I believe a superior crypto would mitigate blockchain inefficiencies.

TL/DR:

In summary (and in my opinion), DOGECOIN is superior because:

    It has a positive and growing community
    It has massive branding potential with an appealing mascot
    It is INFLATIONARY (most important!)
    It may or may not alleviate concerns of: transaction fees, confirmation times, and blockchain growth.


I would love to hear what everyone thinks. Since any developer could invent a crypto at any moment, I think the fundamental attributes of each coin are going to matter more than ever going forward, and any rational participant in a crypto-economy would have to have legitimate reasons for choosing one over the innumerable alternatives. Because I've backed dogecoin, I want to pin those reasons!
  /r/dogecoin
hero member
Activity: 546
Merit: 500
Yes, i agree that it may drop further. I just dont think its going to drop to 15.
newbie
Activity: 42
Merit: 0

I also switched back to DOGE yesterday. Under 300 diff is pretty sweet already.

at 260 its now most profitalbe coin to mine! yay!
sr. member
Activity: 420
Merit: 263
let's make a deal.
Of course. Theres always a "bad case cenario"

40 days is long time in crypto currency economy. DOGE price can drop to 15 in next 40 days and even if price doubles at block cut day, it is still going to be only 30.
 Cheesy

I find this cenario very unlikely to happen, but its surely not impossible.
see, i find it very likely that doge will drop further within 40 days.  i consider this to be a long term gamble with highly unlikely odds ahead of it.

culture is strong, for sure.  but it's nowhere close to everyday acceptance; only in the dogecoin bubble we each live in.

I mean, doge may have better odds than most altcoins, but that's like declaring yourself the world's tallest midget.

full member
Activity: 210
Merit: 100
Crypto News & Tutorials - Coinramble.com
Yayy low difference...moarrr doges !   ツ

...Mining at netcodepool
full member
Activity: 195
Merit: 100
so cheap very cry.
hero member
Activity: 546
Merit: 500
Of course. Theres always a "bad case cenario"

40 days is long time in crypto currency economy. DOGE price can drop to 15 in next 40 days and even if price doubles at block cut day, it is still going to be only 30.
 Cheesy

I find this cenario very unlikely to happen, but its surely not impossible.

I also switched back to DOGE yesterday. Under 300 diff is pretty sweet already.
sr. member
Activity: 420
Merit: 263
let's make a deal.
can someone justify a price increase based on halving the block reward alone?  (e.g. ~40days)

i mean, nobody gives a shit except for diggers.  we'll have more total coins than we do now in 40 days, but there's no guarantee any bugger will buy them.

the last doge being mined will be interesting though.


Just take few hours to read http://www.reddit.com/r/dogecoin/ .
A lot of stuff there is silly and just for fun, but theres also a ton of people activly working for DOGE success. Way more than for any other coin.
sure, but do any of the promoters really care of the block reward is halved in ~40 days?  i think it will come and go with no notice. 

speaking of noticing, dogecoin difficulty has gone down to 2xx.  time to switch a few more mhashes over!
hero member
Activity: 546
Merit: 500
can someone justify a price increase based on halving the block reward alone?  (e.g. ~40days)

i mean, nobody gives a shit except for diggers.  we'll have more total coins than we do now in 40 days, but there's no guarantee any bugger will buy them.

the last doge being mined will be interesting though.


Just take few hours to read http://www.reddit.com/r/dogecoin/ .
A lot of stuff there is silly and just for fun, but theres also a ton of people activly working for DOGE success. Way more than for any other coin.
sr. member
Activity: 420
Merit: 263
let's make a deal.
can someone justify a price increase based on halving the block reward alone?  (e.g. ~40days)

i mean, nobody gives a shit except for diggers.  we'll have more total coins than we do now in 40 days, but there's no guarantee any bugger will buy them.

the last doge being mined will be interesting though.
full member
Activity: 378
Merit: 100
The Premier Digital Asset Management Ecosystem
So you are saying this coin will go up ? Its ....35 now . It was stable for a while at 95 , wonder if it will ever hit again 95 Smiley

Long term? yes without a doubt.
Short term? No.
Theres plenty of time to dig in. I shall be buying and digging some more myself.

 What is the meaning of long term here, 6 months?
that's a good estimate. The minimum is ~40 days, where the block reward will halve.
sr. member
Activity: 345
Merit: 250
So you are saying this coin will go up ? Its ....35 now . It was stable for a while at 95 , wonder if it will ever hit again 95 Smiley

Long term? yes without a doubt.
Short term? No.
Theres plenty of time to dig in. I shall be buying and digging some more myself.

 What is the meaning of long term here, 6 months?
full member
Activity: 210
Merit: 100
Crypto News & Tutorials - Coinramble.com
I must admit i did dump alot of doge myself and bought RPC with the BTC i made

that coin will prolly double very soon or even triple in value

But then i shall sell and buy back into doge

I cant mine at the minute so i have to increase my holding's of Doge in some way

I sold all my EAC to buy RPC, doge no wayy!! it stays
hero member
Activity: 546
Merit: 500
So you are saying this coin will go up ? Its ....35 now . It was stable for a while at 95 , wonder if it will ever hit again 95 Smiley

Long term? yes without a doubt.
Short term? No.
Theres plenty of time to dig in. I shall be buying and digging some more myself.
sr. member
Activity: 345
Merit: 250
So you are saying this coin will go up ? Its ....35 now . It was stable for a while at 95 , wonder if it will ever hit again 95 Smiley
sr. member
Activity: 308
Merit: 250
Quote
Assume you have 1000kHash of digging power; with that you could mine at the current difficulty level approx. 30,000 DOGE a day
pffttt 30,000 a day..
I've solomined for days with 1Mh/s with 0 coins - sooooo

he was talking about pool mining
newbie
Activity: 28
Merit: 0
I must admit i did dump alot of doge myself and bought RPC with the BTC i made

that coin will prolly double very soon or even triple in value

But then i shall sell and buy back into doge

I cant mine at the minute so i have to increase my holding's of Doge in some way
hero member
Activity: 546
Merit: 500
might take awhile for the amount of doge already on exchanges to get bought up

altho demand is very high the supply is 3 times as much atleast

so when block is halved in feb it will take a few months for the dumpers to sell their coins

Just keep buying up all the cheap doge and in 2 months it will triple in price

I do partly agree with you, but next price rise may happen few days before the block halfes. Speculators will start buying in sooner.
Its impossible to tell what will really happen. We shall see in 40 days.
Jump to: