How did Dogecoin become so popular?
In: Technology
People thought it was funny. It was never made to be taken seriously, but people thought that the funny dog cryptocurrency would be perfect to make explode in price. So that’s what happened
Social media and people wanting to get in on the next big thing and make easy money without worrying about fundamentals of the value.
**DOGECOIN IS A PRANK!**
However, it’s had a lot longer legs than expected for a prank. Part of longevity is that the prank was based on the idea “Some people have no idea that cryptocurrencies could be completely fake, they don’t have the math knowledge to understand cryptography.” It turns out this idea is true, but because of the Dunning-Kruger effect most of the people who don’t understand enough crypto also don’t get that this is a prank on them. It turns out that there are a great many such people, and that gives the prank staying power not seen since the Tulip Craze of the 1600s.
Dogecoin was originally a prank, a cryptocurrency invented purely to troll people. Hence why the Doge meme was used as it’s logo/name. Several other fake coins like Coinye West cropped up at around the same time.
Dogecoin specifically was pumped up by Reddit and got a lot of attention on Social Media. Due to the crypto currency craze people who didn’t get the prank started buying it and it started gaining real world value. Dogecoin at the time was virtually worthless so while BitCoin was already highly valued, investing in Dogecoin was like buying a penny stock. People were buying up worthless Cryptocurrencies for pennies in the hopes that one of them would take off. So 2nd wave investors in cryptocurrency were able to get in at the bottom.
Once it actually had value a group of Redditors decided to act like the Rich Texan from the Simpsons, spending Dogecoin money on frivolous things just for kicks.
The most egregious example of this was that time Reddit Dogecoin miners sponsored a NASCAR team… yes that actually happened and it was amazing. This of course had the effect of making Dogecoin even more popular as a cryptocurrency.
Since then Dogecoin has had remarkable staying power for something that really is a joke.
I highly suggest you read up on the Dutch Tulip Craze because we’re in the middle of another one right now…
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