Dogecoin Hype

Is Dogecoin the Next Bitcoin? Definitely Not

Most cryptocurrencies follow a fairly predictable hype cycle, and Dogecoin doesn't seem like it's any different

The cryptocurrency Dogecoin has had quite a run since it was created less than two months ago—it has even drawn comparisons to Bitcoin.

Last week, Dogecoin-ers gave $30,000 worth of the virtual currency to get the Jamaican bobsled team into the winter Olympics. Yesterday, the International Business Times explained how Dogecoin has already “proved its worth,” while The Sunday Morning Herald gave the cryptocurrency the front-page treatment, proclaiming ”The Rise and Rise of Dogecoin, the Internet’s Hottest Cryptocurrency.”

Now you can even use the currency to buy things on Amazon, thanks to AmaDoge, which launched on Thursday.

It’s been a whirlwind boom. Unfortunately, the bust is probably just around the corner.

But comparing Dogecoin to Bitcoin is a joke. (Cough, cough, The Verge.) Bitcoin is well on its way to mainstream adoption. As of this week, for instance, both Google and eBay have announced plans to integrate Bitcoin into their payment platforms.

Bitcoin, however, is the exception to the rule when it comes to cryptocurrencies. The vast majority of them—and there have been a lot (Litecoin, Peercoin, Namecoin, Quarkcoin, Feathercoin, Terracoin, etc.)—tend to get very popular very quickly, and then fade out very quickly. The whole cycle seems to last about 10 weeks.

As an example, let’s compare Dogecoin to Feathercoin, another peer-to-peer currency. Feathercoin has actually been around since 2011, but it enjoyed a sudden burst of attention amid the late 2013 Bitcoin boom. In December, its market cap suddenly spiked to $30 million. About a month later, it was back under $10 million.

Other cryptocurrencies follow similar patterns. Both Novacoin and Freicoin also had market-cap peaks in December 2013 that have since deflated.

Sure, analyzing market caps isn’t the definitive approach to judging the staying power of a cryptocurrency. There are plenty of other indicators (like individual transaction values and confirmation times) that may yield different results. But of all the metrics you can choose to measure a currency’s value, the market cap takes into account multiple indicators, including the number of transactions and the total value exchanged.

So let’s take a look at the recent “boom” in Dogecoin’s market cap. It sure is on the rise. If you’re an optimist, you might just think it’ll keep on going up!

But wait 20 or 40 or even 60 days and see where it is then. There’s no evidence to support that Dogecoin is another Bitcoin.

If I’m wrong, well, I’ll come around begging for Dogecoin. I have a feeling I’m not.

Respond Now
  • Are you begging for Dogecoin yet?

  • We don’t want dogecoin to be another bitcoin, dogecoin isn’t going anywhere. And when you come begging for a dogecoin, I’ll point you to this article.

  • Dogecoin is the Bitcoin for smaller size transactions, thus comparing them is wrong. Bitcoin could very well become the gold of cryptocurrencies, while Dogecoin becomes the mainstream cash. It certaintly has the right appeal for it.

  • wrong wrong wrong

  • Ignorant article by an ignorant fool…

    2 Replies - Reply Now
    • Agreed!

    • ah shucks, looks like you are the ignorant fool

      1 Reply - Reply Now
      • I concur!

  • This is a ludicrous article.  The thesis is as follows:1. Dogecoin has experienced growth.2. Other alt coins grew but then declined.3. Dogecoin will decline because other alt currencies declined.How about the possibility that the reason the other alt coins have declined after december is because dogecoin succeeded.Let’s look at litecoin.  It appears to still be doing pretty well. This is ignored in th article.Lets apply the author thesis to planes.1. The Wright brothers plane flew.2. Several successive attempts failed.3. Only the Wright brothers can build planes.

  • Show More
  • Doge is a coin with a vision.  As silly as it sounds “to the moon”, this mission statement is very powerful.  What’s litecoins vision? silver to bitcoin’s gold….weak.  This starts the currency on the notion that it’s not as good as another currency.  Dogecoin’s major advantage (beyond the meme) is it’s distributive properties.  This allows more people to hold and become passionate about the coin.  Unlike bitcoin which is slowly becoming the coin of coke-snorting, prostitute visiting, Wall Street types!

  • Many Dogecoin, Much need, WoW! >> DJc8oR9jQ7L5UcbXSYN7o3Ak7JncFuyX5d

  • don’t lose faith in the dogehttps://www.youtube.com/watch?v=H3oiThw2RxEDSanWgZHsa6KrxW4wX5vLtuLyCmLkKWyqc

  • I read an article about Bitcoin (see link below )in the reputable Wired magazine back when I knew nothing about it. The headline was called “The Rise and Fall of Bitcoin” Had I invested in Bitcon then I would be filthy rich, so now I’ll be keeping my money in Dogecoin, as you never know.http://www.wired.com/magazine/2011/11/mf_bitcoin/all/Doge: DKCv2FgqxwgZDw6Zxntaa8uDh8W2rBtTHz

  • to the moon!DGCVjygAtPDkHoYxQXPPRqoDaQHLxuBTgG

  • What this article neglects to take into account is Dogecoin’s inherent ability to appeal to the mainstream, which is what a viable cryptocurrency needs right now. Bitcoin? Okay, it’s been around for a while, but many people who don’t know a lot about the currency associate it with criminal activity, or think it’s a ponzi scheme. Dogecoin doesn’t have that stigma. Dogecoin is fun. The cost per coin is small. And even as it rises, it will remain manageable for figuring out purchases because sellers can charge in whole dogecoins, not fractions. And it has a cute doggie. What else can you ask?Doge: DD1KQSKfs7kjQhRzeSwzsJHzCo8xi8h7fn

  • Thank you for writing this thoughtful article!  But why wait another 60 days to collect some precious Dogecoin tips?  I’m prepared to send you 500 sweet sweet dogecoins TODAY if you post a tip address.  In a month the equivalent value in USD I would donate would be 5 DOGE.  Also the only comment i’ll be leaving is ‘lol’.Join the party! Dogecoin is the hottest, funnest thing on the internet right now.  The shibes are always looking for new victims to throw their money at!  By the time this meme gets old which will likely be never Dogecoin will have established itself as the de facto tipping currency of the internet. DOGE: DDsWB1KvDN1sdnW69a7Y23CH9SCvAhFQPC

    2 Replies - Reply Now
    • Send me many doge!!! DFeqNhKohrVsDAXWgfQawhXg86ZzuAhRmc

    • DRs4Tf3NxWWKemMHMbZME4rZVaZrX8Xz6MSpread the word about doge, bro.

      1 Reply - Reply Now
      • Whoops, looks like the things merged. ( DRs4Tf3NxWWKemMHMbZME4rZVaZrX8Xz6M )

  • There will always be a place in our hearts for bitcoin as dogecoin waves to it on the way to world adoption, and the moon.

  • Dogecoin is different because of the community that it has, and that its growth is based on where it’s used as a tipping currency. Both of these things are unprecedented. See you in a month, and then again at the end of 2014 (and beyond) when we can all say that we told you so.

  • Take a look at bitinfocharts.com, Doge is killing almost all other coins on the metrics.  Doge is in a league of its own.

  • Um. I don’t even know where to begin… but you really don’t know what you’re talking about. For example, Feathercoin has not been around since 2011. Feathercoin’s genesis block came into existence on April 16, 2013: https://bitcointalk.org/index.php?topic=178286.0… I think you’ve confused Litecoin with Feathercoin.

  • Did feathercoin have the fanatical community? Could you tip with feathercoin? Did feathercoin actively pursue charity intiatives? Did feathercoin improve viability by increasing the amount of coins to a usable about?There are tons of differences you are neglecting to take into account. If a metoric price increase is purely based on speculation, then yes, it will crash. But if it’s based on a specific reason outside of profiteering, a crash is not garanteedWhy have other coins succeeded in creating huge growth without crashing?Bitcoin: Revolutionary, increased payment options as time goes onLitecoin: Improved coin balance and mining, good dev communityDogecoin: Fanatical community, new paradigm of tipping, improved coin count(100 billion is more reasonable for something that actually want’s to be a CURRENCY)

    1 Reply - Reply Now
    • Dogecoin: Greater # of daily transactions than all other cryptos combined.  For weeks now.  Enough said.

      1 Reply - Reply Now
      • Funny how a chinese investor dumped $5mil on doge yet this article pretty much would indicate the investor to be an idiot :p

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