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Here's Why Dogecoin Has A Bright Future
The last week has been packed with exciting news for crypto and Dogecoin.
With a Dogecoin fee adjustment on the horizon, potential Starlink integrations, and continued community support, Dogecoin’s future is looking bright.
Let’s take a look at the latest important developments for our favorite Shiba-inspired dog money.
Dogecoin developer Patrick Lodder has introduced a formal proposal to reduce average Dogecoin transaction fees.
In the proposal, Lodder noted that Doge's surge in price had caused it to become more expensive than other cryptocurrencies:
"Where transacting DOGE used to be 10x cheaper than transacting LTC, it is as of writing nearly 5x more expensive.
Therefore, it makes sense to reduce fees by at least 50x to stay competitive."
Lodder also said that high fees were preventing people from taking their Dogecoin off exchanges:
"This situation causes people to keep their DOGE in custody of centralized platforms longer, because the perceived value loss of transferring DOGE to a secure wallet is (too) high."
Lodder said he expects the proposal would make average fees 100x cheaper, among other changes.
It's a major update, and one that could help propel Dogecoin to becoming one of the most efficient and practical cryptocurrencies around.
With Dogecoin's powerful branding and passionate community, the addition of cheap fees would enable Doge to walk the walk, enabling affordable transactions that naysayers can't ignore.
Elon tweeted in favor of the proposal, saying it was "important to support."
Lower fees will be a major component in Dogecoin's future prospects, perhaps helping propel "meme-money" to the moon.
Starlink + Dogecoin?
Last week, Elon announced Starlink had reached an important milestone.
These areas tend to suffer slow internet speeds, if they have access at all. Starlink is expected to provide global internet connectivity by this coming August.
Starlink's satellites are significantly closer to earth than traditional satellites, allowing for faster service.
By providing high-speed internet to underdeveloped areas, Starlink could help accelerate global cryptocurrency adoption.
It could also lower the barriers of entry for crypto miners.
In response to Elon's call for ideas to improve Doge, a researcher named Arthur Gervais submitted a proposal suggesting Dogecoin miners could use Starlink internet to speed up block time while preserving security.
Dogecoin developer Michi Lumin recently announced that they are setting up a full Dogecoin node on Starlink.
Do Dogecoin's low fees and fast transaction speeds make it a logical cryptocurrency for the same developing communities that will benefit most from Starlink?
Elon previously agreed with the characterization that Dogecoin as a "private stimulus for the people."
This week, charity group GiveDirectly announced that Elon had donated 150,000 Dogecoin to Rwandans for COVID relief in February.
GiveDirectly is a nonprofit that allows donors to send money directly to impoverished folks across the world.
The Rwanda news came the same week that El Salvador's President Nayib Bukele announced every adult citizen would receive $30 worth of Bitcoin by registering with the government's cryptocurrency app.
So far, cryptocurrency ownership has been limited to a small percentage of the global population. That appears to be changing.
As Starlink makes high-speed internet available across the world, more people will be able to participate in alternative, people-centered monetary networks like Dogecoin.
Starlink could be a big part of the plan to make Dogecoin "the people's crypto."
Vikings, Trickers, and Shibes
Anticipation has been building for the Dogefather's Shiba Inu puppy.
Last Friday, he announced his future dog's name: Floki.
In Nordic history, Flóki Vilgerðarson was the first Scandinavian known to reach Iceland.
The History Channel's historical drama Vikings features a character based on the historical Flóki.
In the series, Flóki is an eccentric shipbuilder who considers himself a descendent of the Norse trickster god Loki.
Elon previously hinted at playing the role of trickster during a series of tweets about cryptocurrency.
In Norse mythology, Loki is a mischievous shapeshifter. Sometimes he helps other gods. Other times he works against them.
Tricksters like Loki frequently act in ethically ambiguous ways, bringing new life to the world by disrupting the existing order.
Has Elon been playing the role of behind-the-scenes trickster in the world of crypto?
In the past, his outsized, unpredictable influence on financial markets has drawn ire from the powers-that-be: the SEC, the financial media, hedge funds, and, most recently, Bitcoin OGs.
In May, he frustrated some in the Bitcoin community with his decision to pause Bitcoin payments for Tesla until mining uses more renewable energy.
At the time, the announcement was viewed as bad for Bitcoin, whose price dropped below $50k the same day as the news.
The weeks since Bitcoin broke below $50k, however, have seen important developments for crypto's sustainability.
The first was the the creation of the Bitcoin Mining Council, or BMC, a "voluntary and open forum of Bitcoin miners."
Part of the BMC's mandate is to increase transparency into the Bitcoin mining industry, including publishing data on renewable energy usage.
Michael Saylor, who helped Tesla purchase Bitcoin, convened the initial council meeting. While Elon is not on the BMC, he participated in the call.
He has said he will resume Bitcoin payments for Tesla when "there's confirmation of reasonable (~50%) clean energy usage by miners with positive future trend."
The BMC could provide the accountability necessary to push Bitcoin miners to use more renewable energy, as well as the mining data that Tesla uses to justify accepting Bitcoin again.
Did Elon's decision to pause Tesla Bitcoin payments set in motion the chain of events that lead to the greening of Bitcoin?
Another important transformation for crypto has been a shift in its locus of power from China to North America.
Over the last month, China has cracked down on crypto, forcing the majority of its Bitcoin mines to close or move elsewhere.
Many miners have chosen to relocate to North America, potentially giving the US more influence over Bitcoin.
Texas, where Tesla is building a factory, recently passed pro-crypto legislation.
On the eve of the Bitcoin 2021 Conference in Miami, Musk tweeted a series of memes suggesting that Bitcoin could be in the process of breaking up—perhaps with China—and forming a new union with North America.
The second tweet in the series featured an unexplained picture of an upside-down owl with the communist logo.
To what extent is China's crypto ban tied to Bitcoin's correction? Did the Dogefather claim Bitcoin for North America in a turf war?
The cryptocurrency landscape appears to be undergoing a major shakeup.
Elon looks involved. His exact role is not yet fully known.
It's natural to speculate about the future. Could Dogecoin push ahead of Bitcoin as the #1 crypto by market cap?
Would $1 Dogecoin upend the world's financial order?
If nothing else, the meme of a band of cybervikings pillaging the global financial system is an entertaining way to think about the Dogecoin community.
Whether he's a viking or trickster, Elon's affinity for Norse culture appears to be shaping the world of crypto.
Doge has a lot to gain from Elon's continued endorsement, and his cyber-dog Floki may turn out to be a cute but prominent mascot for Dogecoin in the future.
Conferences, coffee, and the crypto community
In an innuendo-filled Twitter exchange, Elon agreed to have "THE talk" about crypto with Jack Dorsey on July 21st at the opening event for The B Word, an educational initiative about Bitcoin. ARK Investment CEO Cathie Wood, who recently filed for a Bitcoin ETF, will also be in attendance.
Will Elon mention Dogecoin in a positive light at the Bitcoin-centered event?
Dogecoin's Fake CEO @greg16676935420 posted a meme about the CEOs' exchange and the evolution of corporate leadership, eliciting the coveted double rolling-on-the-floor-laughing emoji from Elon.
Last week Dogebeans Coffee launched a homage to greg with "THE CEO."
Dogebeans describes the blend as "incredibly versatile, with notes of rich chocolate and creamy peanut butter."
Another leader in the Doge community, creator Billy Markus, announced that he'd purchased crypto for the first time in eight years.
Markus, who considered Dogecoin "a joke" when he created it, took the opportunity to defend it from criticism that it was a scam, pointing out that the currency's growing adoption has given it a legitimate use as a way for people to exchange value.
“I’m really hesitant to call other projects a scam, and I cringe when I hear people say it. Dogecoin was (and still is) called a scam constantly. Other than actual malicious intentions from the developers, the only real difference between a ‘scam’ and successful coin/token is adoption… Everything is a joke until it actually gets adopted and used and has use/value.”
Markus continues to use his influence to push Dogecoin in a positive direction. On Tuesday, he put out a call for Dogecoin "this is the way" memes.
The Doge Days of Summer
Dogecoin's reputational stature and passionate community remain strong as the much wow meme-money trots into Q3.
With lower fees on the horizon, Dogecoin stands to gain from the practical utility of being a cheap and efficient cryptocurrency for daily transactions.
Coupled with potential Starlink integrations and Elon's continued involvement in the cryptocurrency community, Dogecoin's position as a crypto for the people is becoming more and more legitimate by the day.
With the community united and positivity abound, Dogecoin's future is looking bright and much wow.
Dogey Treats: Crypto News Bites
As of June 2021, more than 1400 merchants accept Dogecoin.
A German travel-booking site, GetYourGuide, announced they now accept Dogecoin for payment as part of its expansion into the US. CheapAir, another online travel agency, also accepts Doge for flights and hotels through BitPay.
In a Twitter Spaces chat about cryptocurrency, Tom Brady said he was excited about memes and wanted to surpass Elon Musk in Twitter clout. Brady is partnering with crypto exchange FTX and will receive payment in crypto.
Actress and singer Dionne Warwick tweeted in support of Dogecoin.
Dogecoin's rise has increased demand for Shiba Inu dogs.
SunnyD tweeted in support of Doge: SunnyDoge.
A Goldman Sachs report on digital currencies features Dogecoin prominently on its cover art.
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Memes of the week
The Meme Economy
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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 $0.24 per coin.