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8 Reasons Why Dogecoin Will Rise Again
The Dogecoin saga isn’t over yet.
Everyone’s favorite Shiba-inspired meme money is prepared to rise again, with a mix of utility, accessibility, and meme power launching Dogecoin into orbit and beyond.
Establishing itself as a leading crypto contender in the battle against fiat, Dogecoin is poised to reestablish its dominance with potential DeFi upgrades and decentralized leadership paving the way.
Let’s take a look at 8 reasons why Dogecoin will rise again.
Utility is a major factor in what gives a cryptocurrency value, and Dogecoin's utility is only growing.
Being able to use your Dogecoin for everyday transactions will help increase its price over time.
Dogecoin is faster and cheaper to transact with than Bitcoin, making it a logical method for facilitating payments online. Bitcoin is scarcer and more distributed than Doge, positioning it as an ideal store of value.
In the ecosystem of digital currencies, Dogecoin complements Bitcoin.
Multiple point-of-sale platforms already allow consumers to use Dogecoin for payments. After receiving crypto, businesses can decide whether to keep it or convert it into dollars.
Pressure is growing on businesses to accept Doge. The hashtags #DogeForAmazon and #AcceptDoge have repeatedly trended on Twitter.
Smart companies are starting to get the picture, and dozens of businesses currently accept Dogecoin as payment.
US sports teams like The Dallas Mavericks, Houston Rockets, Oakland A's, and San Jose Sharks have each announced they will accept Doge and other cryptocurrencies for ticket sales.
Elon Musk's poll asking if Tesla should accept Doge for vehicle purchases was overwhelmingly positive, with 78% of nearly 4 million participants voting "Yes."
Dogecoin could also be a natural choice as the preferred crypto for tipping content creators online.
Jack Dorsey recently announced that it is "only a matter of time" before Twitter integrates Bitcoin payments.
Twitter has nearly 70 million users in the US and at least 300 million users total. What happens to crypto adoption when Twitter becomes a crypto-native platform?
Will other social media companies follow?
With crypto integrated into Twitter, folks may choose to tip each other fractions of a Bitcoin.
However, rather than tip with fractions of a Bitcoin, users could collectively decide they prefer to tip with whole Dogecoins.
Many Twitter users already tip each other with Dogecoin by posting their wallet addresses. A Doge-Twitter integration is a logical next step.
The hashtag #PayMeInDogecoin recently outpaced the hashtag #PayMeInBitcoin on Twitter, showing the power of the Dogecoin community and the willingness for folks to use Doge for payments.
Dogecoin's great branding and comparatively cheap cost make it a worthy competitor of Bitcoin in the race to become the "tipping" crypto of the internet.
Increased use-cases for Dogecoin like Tesla acceptance and Twitter adoption will enable "dog money" to have renewed strength and power as a legitimate currency, helping Doge to rise again.
Accessibility is a major factor in Dogecoin's future rise.
Leading US crypto exchange Coinbase has officially listed Dogecoin, making it available to its 50+ million users.
Many first-time crypto investors use Coinbase to onboard into the world of digital currency.
Doge’s positive community and viral memes make it a fun way to enter crypto. Its listing on Coinbase substantially increases its availability to new US crypto investors.
Once folks buy Doge on Coinbase, they can spend it with a Coinbase debit card no differently than they would cash.
Since the Coinbase listing, three more exchanges have announced support for Doge.
Coinbase’s announcement comes on the heels of the Winklevoss twins’ Gemini exchange listing Dogecoin for trading. Investors who keep Doge on Gemini can also earn interest on their Dogecoin holdings.
Increased accessibility through exchange adoption and interest-earning initiatives will enable Dogecoin to become a world-wide cryptocurrency, helping tp bring Doge's price to new heights.
3. Crypto vs. Fiat
Crypto has gone global.
Across the world, governments are suddenly deliberating whether they want to support or oppose cryptocurrencies.
El Salvador's President Nayib Bukele recently signed a law recognizing Bitcoin as legal tender. Businesses in El Salvador will soon be required to accept Bitcoin for payments.
Bukele also announced the country's intention to use thermal energy from volcanoes to power Bitcoin mining facilities.
The El Salvador announcement appears to have set off a domino effect in the region.
Politicians from other Central and South American countries are following Bukele's lead by adding “laser eyes” to their social media profiles.
Panama, Paraguay, Mexico, Brazil, and Argentina now have politicians who publicly back Bitcoin.
India, Nigeria, Tanzania, Tonga, and New Zealand have also been discussed as countries that could enact crypto-friendly legislation.
In the US, Texas passed a law allowing state-chartered banks to custody crypto assets, while a bill banning Bitcoin mining was defeated in New York.
Not everyone is happy about the prospect of countries adopting crypto.
In response to El Salvador’s historic law, an International Monetary Fund spokesman raised alarm, saying that “Adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues."
In a US Senate Banking Committee hearing, Senator Elizabeth Warren criticized cryptocurrencies for being too volatile, mentioning Dogecoin by name.
China is already working to introduce a digital yuan. This and other Central Bank Digital Currencies (CBDCs) replicate many of the existing features of our current government-controlled fiat system.
While some perceive these back-and-forth developments as risky for crypto, simply the fact that there is debate among governments is a positive sign.
Crypto's growing adoption across the globe has forced governments to either embrace it as part of their monetary system or come up with an alternative.
One way or another, the digital money revolution is here, and Dogecoin is a major player.
Elon Musk has said that "A picture says 1000 words, and maybe a meme says 10,000 words. It's a complex picture with a whole bunch of meaning in it."
Memes have existed since cave paintings. What's new is their use and viral spread on platforms like Twitter and Reddit.
The combination of memes and social media enables investors to carry on a symbolic conversation about markets in real time across the world.
The meme diamond hands has been highly effective for onboarding new investors into meme stock movements like AMC and GameStop.
Diamond hands represent an investing strategy of buying and holding assets long-term, regardless of price fluctuations, bad press, or market manipulation.
The diamond hands meme has enabled millions of small investors to band together into a powerful, fun-loving market force that is able to compete with large financial institutions.
Similarly, GameStop and AMC investors have used the hashtag #ApesTogetherStrong to build communal spirit and quash infighting while they patiently wait for the stocks to squeeze.
Like the groups of investors that have formed around AMC and GameStop stocks, Dogecoin holders have rallied around memes to keep vibes high regardless of the ups and downs in the coin’s price. Diamond hands are especially useful for volatile assets like Doge!
The meme DoOnlyGoodEveryday is another point of reference for the Dogecoin community.
Crypto markets can be a place of immense greed, fear, and toxicity. DoOnlyGoodEveryday reminds Doge holders to keep a positive, other-directed mentality, regardless of price action.
Memes are a novel way to coordinate the investing behavior of millions of individuals. We are just beginning to understand the impact they can have on world markets.
So far, in 2021, one thing is clear: investing communities that use memes have a major advantage over everyone else.
5. The Space Race
The day after his SNL appearance, Elon Musk announced SpaceX's plans for the "Doge-1" satellite mission, funded entirely by Dogecoin.
This past April Fool's, he tweeted that "SpaceX is going to put a literal Dogecoin on the literal moon."
The joke was that he was serious.
During June's Bitcoin Miami 2021 conference, the Bitcoin community responded to Elon's audacious goal.
Crypto exchange BitMEX is partnering with the NASA contractor Astrobotix to bring a "one-of-a-kind physical Bitcoin" to the moon.
BitMEX stated that their goal is to complete the mission by the fourth quarter of 2021.
They're also trying to reach the moon before Dogecoin.
It's a positive sign that Bitcoin and Dogecoin communities are engaging in friendly, constructive competition to expand humanity's frontiers.
The mid-20th century's space race between the US and Soviet Union captured the attention of the world and inspired millions to pursue careers in science and engineering.
A crypto-inspired 21st century space race could bring attention to America’s revitalized space program while raising global awareness of cryptocurrencies as a revolutionary monetary technology.
6. Doge Defi
Doge holders will soon be able to loan their Doge and collect interest through automated online lending protocols, collectively known as decentralized finance, or DeFi.
DeFi makes financial lending and borrowing products available on a public blockchain.
Anyone with a smartphone and internet connection can make or receive a loan, eliminating the need for central banking institutions.
Loans, repayments, and liquidations are handled algorithmically through automated smart contracts. Fees that used to go to banks stay with individuals.
The Flare Network, expected to launch in June or July, has already confirmed that Dogecoin will be included in its initial group of assets for DeFi.
Flare is not the only DeFi platform gearing up to integrate with Dogecoin.
After Ethereum creator Vitalik Buterin challenged Musk's suggestions to improve Dogecoin, Musk posted a meme to Twitter suggested that Buterin "fears the Doge."
Within days, Buterin floated the idea of a "Doge to Ethereum bridge" during an interview on the Lex Fridman Podcast, raising the possibility of DeFi smart contracts on the Ethereum network for Dogecoin.
Did Musk revive his role as Dogefather and make Buterin an offer he couldn't refuse?
Like Doge and cryptocurrency in general, DeFi is a nascent technology.
Another advocate for Doge, Dallas Mavericks owner Mark Cuban, has described the DeFi revolution as being "like the early days of the Internet."
DeFi integrations will give Doge a new dynamic, helping it to rise again and become an unstoppable financial vehicle.
7. Lower Transaction Fees
In May, Elon tweeted that he’d been working with Dogecoin’s development team to improve the cryptocurrency's efficiency.
Two days later, he laid out his ideal vision for Doge’s code. Developer Ross Nicoll subsequently confirmed that Musk had been helping optimize Doge by making it faster and cheaper.
As Doge has grown in 2021, so has its average transaction fees. The current mandatory transaction fee is 1 Doge.
Developer Michi Lumin has suggested that new transaction fees will be less than one Dogecoin.
Doge's core development team has discussed anywhere between 0.1 and 0.001 Doge, with the goal of progressively lowering fees over time.
According to Nicoll, Doge developers need to convince block miners to accept lower transaction fees.
Miners, who receive rewards from each transaction they process, will only agree if they can expect to offset lower transaction costs by processing more transactions. This requires increased adoption.
Like Bitcoin, Dogecoin is decentralized. Changes to its code are only be implemented once a consensus of miners and node operators agree to them.
Nicoll estimated developers need to convince “at least two-thirds” of miners and node operators before changes could come into effect.
If transaction fees are too high, owners are incentivized to save Doge rather than use it.
To become a globally preferred medium of exchange for small transactions, Doge must cheap enough for consumers and businesses to circulate it freely without worrying about the cost.
Lowering transaction fees could kickstart a virtuous cycle that increases adoption. As the number of transactions increase, developers would have even stronger case for further fee reductions.
Doge already has the best brand in the crypto universe. Becoming more efficient will strengthen its case as a global medium of exchange.
The Doge community has, with evident unanimity, chosen the twitter account @greg16676935420 as its faux CEO. (As a decentralized payments network, Dogecoin has no real CEO).
Greg describes himself in his twitter bio: “im greg I like football and stocks and my birthday im from kentuckey. I’m a investor. I like to golf at the golf course.”
Doge co-creator Billy Markus nominated greg after Markus was erroneously described as Doge's CEO in a news article.
In his first act as CEO, greg called for "a 10% increase for the holders of le dogecoin."
Lo and behold, Doge rallied 10%.
Although he no longer works as a developer on the project, Markus remains active on Twitter, taking on the role of a father figure by encouraging self-care and positivity among the Doge community.
Contrary to the belief that Dogecoin has only succeeded because of support from billionaires like Musk and Mark Cuban, Greg and Billy show how regular folks can have an outsized impact on Doge's future.
Together, they embody the Doge ethos of “the people’s crypto.”
Although Dogecoin is a decentralized coin and community, the contributing members are proving that Doing Only Good Everyday goes a long way.
Keeping Dogecoin fun will help the coin to rise again.
Dogecoin has proven to be a formidable underdog.
With the combination of utility, accessibility, and formidable meme power, Doge is prepared to take the world by storm.
With the battle between crypto and fiat heating up, Dogecoin stands to gain from a crypto-powered space race, DeFi integrations, and its decentralized legion of meme-inspired contributors.
With these forces culminating in Doge's favor, Dogecoin is poised to to rise again, bigger and better than ever before.
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Disclaimer: This is not financial advice and I am not a financial advisor. The article above references an opinion for entertainment purposes only and it is not investment advice. Do your own research and consult with a licensed financial adviser before making any investment decision. Do not treat any opinion expressed in this newsletter as a specific inducement to make a particular investment. Content, news, research, tools, and securities symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or cryptocurrency or to engage in any particular investment strategy. The information provided is not warranted as to completeness or accuracy and is subject to change without notice. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results and are not guarantees of future results. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, cryptocurrency, or financial product does not guarantee future results or returns. Dogecoin is a speculative and highly volatile asset susceptible to pump-and-dump schemes.
Disclosure: I currently own some Dogecoin, Bitcoin, and Ethereum. At the time of publication, Dogecoin is around $0.23 per coin.