Editor's Note: This article comes fromBihuEditor's Note: This article comes from
, Author: Mom Paige, published with permission.valueNothing beats Dogecoin in 2021. Dogecoin is a dog-themed cryptocurrency whosevaluerecentSkyrocketing,That's thanks in part to the backing of Elon Musk and other celebrities. for a while it wascryptocurrency. according to，DogecoinCoinDesk’s Dogecoin Price IndexDogecoinIn 2020 the price is less than per
half of DOGE
. Now, it's trading at 5 cents or more, with a year-to-date return of around 1000%.
Emily Parker is CoinDesk's Global Macro Editor.
Dogecoin mania is nothing but about the world we live in right now.
secondary titleThere's a fine line between the ridiculous and the seriousDogecoin is literally named after a dog and is represented by a Shiba Inu. Rapper Snoop Dogg recently changed his name to "Snoop Doge”。
designingbitcoinDogecoin’s prominence these days has irritated some of the more serious folks in the crypto industry who haven’t always been serious. They have spent years trying to convince people that there is real technology behind cryptocurrencies, even though no one in the industry has the slightest idea of how cryptocurrencies work. Now, finally, the world is watching. Almost every day another brand tries to get in on the action. Paypal. Tesla. MasterCard. Harvard Morgan Stanley. America's oldest bank (BNY Mellon). the list goes on,
bitcoin
The price of Bitcoin has responded accordingly, surpassing $50,000 this week.
It sends a message that we should have known: that what was once considered ridiculous by many can turn serious. Before 2016, much of the world viewed Donald Trump as an outrageous reality TV star with no chance of winning the US presidency. They took him as a joke, and many are still laughing. But he still maintained his position as the most powerful in the world for four years.
This is obviously not a perfect comparison, and the point is not to compare Dogecoin to Trump. In short, Dogecoin "jokingly" reached a market cap of about $7 billion, which is the real money. It also means that some people face some very real losses if DOGE mania breaks out.
secondary title
Collective beliefs can trump 'fundamentals'How did this happen? How does something obviously absurd become undeniably true? Part of the reason is that reality seems increasingly shaped by collective beliefs rather than fundamental facts.This collective belief may trump more practical concerns.Until recentlyHowever, Dogecoin is still largely abandoned by developers, and its last major software release was two years ago. Others pointed out that it
lack of own miners, which makes it vulnerable to attack. Critics will say that the recent DOGE boom has been driven entirely by speculation rather than fundamental value.Dogecoin is aemotionally drivenassets. But lately, a lot of things are like that. Value is created by the emotion of the crowd and powered by the explosion of social media. The most obvious example is GameStop, where Redditers teamed up to boost the price of a critically short stock. A recent example is MarsCoin, after Musk mentioned it on Twitter,That。
up more than 1000%
Teenagers' fame on TikTok has skyrocketed, fueled by the collective support of fans and the app's cryptic algorithm. Do those seconds-long videos deserve global acclaim? Should these people be famous? Maybe not, but that doesn't matter either. Some are becoming millionaires. This may be harmless, but the same is not true of Internet-driven conspiracy theories that don't actually have to be based in the real world. People just need to believe they are real.
Collective belief has always been a powerful force, but it cannot move markets on its own. The difference now is that social media can translate collective belief into collective action at an unprecedented speed and scale. Celebrities like Musk have been able to use their massive fan bases to push people to make concrete moves, like buying DOGE and raising its price.
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People want decentralization, but it's still out of reach
The idea of collective belief is at the heart of money, and therefore of crypto culture. Without a shared sense of value, fiat currencies will be nothing more than paper and metal. But while central governments can print money and influence prices, Bitcoin is meant to be independent of that system. In short, the price of Bitcoin is determined by how much people are willing to pay for it. In the early days, it was just pennies. Now, the price is over $50,000.
Dogecoin represents the ideal of what a cryptocurrency should be. It's really weird and sits outside the financial system. Its founders effectively left the scene, ruled by the community. Big banks don't want to do that. It’s safe to say it will be a while before we see major headlines featuring Goldman Sachs and Dogecoin.Musk, a prominent supporter of Bitcoin, suggested that Dogecoin should becomecurrency”"The People's Encryption
currency, a democratic form of money. It's a nod to the zeitgeist we've seen in the GameStop frenzy, which is retail investors' affirmation of the strength of the big hedge funds. But will GameStop really change the balance of power in the financial world?Financial democratization is hard to achieve. So it’s no surprise that Dogecoin isn’t that decentralized after all. Musk recently pointed out that Dogecoin wealth is tooconcentrated.This statement gotCoin MetricsCoin Metricssupport,Noting that the top 100 DOGE addresses hold 68% of its total supply, compared to 13.7% for Bitcoin.
in other words, the top 1% of DOGE addresses have 94% of the total supply.musk tried to pass
urge
