At the beginning of this year, we saw a surge of attention and demand going towards Dogecoin. With Elon Musk and other celebrities endorsing it, new investors and those with money to spare chose to buy Dogecoin. Had they held their coins for a few months, they would have seen an epic 13x price growth, before the cryptocurrency headed back to the $0,30 area.
But Doge is not the only dog money in the market. After DOGE’s success, many other clones of the cryptocurrency started to take off. The most noteworthy was Shiba Inu.
The rise of Shiba Inu and its position in the market
Shiba Inu, also known as SHIB, was created a while back to allow users to buy SHIB in massive amounts of tokens at a near-zero price. With its 394 Trillion of circulating supply, it enables users to buy coins for just $0.000007107 at the time of this writing.
The news took off and social media influencers started promoting the project. In a short amount of time, the project gained such a large community that we saw Binance list it. Currently, it is considered to be the best performing “clone” of Dogecoin, and has also seen a large price drop ever since May.
Why Dogecoin (and all dog money) are a good investment
Let us prelude this chapter by saying that none of the things we are about to unfold are considered to be financial advice. The direction of the market is always uncertain, and tokens without a utility are simply a different form of gambling on the web. That said, Dogecoin, and similar meme coins could have their position in your portfolio. Here’s why:
1. “Normies” like it
Normies, a term often used in crypto Twitter, refers to the amateur investor who has no technical experience or ability to perform in-depth research on the utility of projects. Dogecoin, for normies, is the greatest cryptocurrency, and that is for several reasons.
- It is easily identifiable – Anyone from a fashion Tik Tok influencer to a grandpa at the pub will recognize that Dogecoin is “the dog money”. A fun meme of the internet that has reached a level of organic virality that can simply not go ignored.
- You can buy whole coins – Not only does it allow normies to buy whole coins, in contrast to Bitcoin, but it also allows users to buy many tokens at a cheap price, which leads to a sense of euphoria and hope.
- Women like it – The majority of the crypto market is dominated by men. However, Dogecoin is often discussed in chats, social media channels, and real-life situations that are dominated by women. This, too, is a direct result of its organic virality and proves the importance of memes.
- Support from large influencers and tech entrepreneurs – Elon Musk, Mia Khalifa, Snoop Dog, and other celebrities have voiced their support for DOGE, leading a whole new generation of investors to discover cryptocurrencies
2. Huge community
We can easily identify the effect that Dogecoin’s community has had by looking at Robinhood. The US-based trading platform generates 62% of its cryptocurrency revenue from Dogecoin transactions alone, and cryptocurrency transactions make up 40% of its total revenue. Dogecoin is the leading cryptocurrency in the US, and there is much more to add here.
In many ways, the community has grown from the interest of influential personas, but that is not the only reason. Aside from that, it is the coordination point for people who don’t want to buy a serious coin – one that actually solves an industry problem.
And this investing mindset can be seen by the large majority of market participants. Dogecoin is the most “understandable” type of money, which is why so many people like it.
3. Plans to add utility due to large community
Knowing that crypto prices may soon be on the rise again, Elon Musk has voiced his opinion on trying to coordinate some changes on the network to benefit from the audience it has managed to amass.
Many believe that we may see a collaborative effort between Elon Musk and Vitalik Buterin for this, as the latest seemed to be interested in this following an interview with Lex Friedman. The main shift would be to DOGE’s consensus model which at the moment is still PoW. The plan would be to change it to PoS and start offering staking rewards to investors of the cryptocurrency.
Of course, this would just be the start. Elon’s ambitious plans to use DOGE as money on Mars, or even to make it the best cryptocurrency in the market, have no end in sight. For that reason, it may be worth investing in Dogecoin, or one of its less expensive clones, like Shiba Inu, and potentially see huge financial gains over the next few months.