Since posting about Dogecoin last week, prices of the meme inspired crypto currency have been in the ‘dog house’ (sorry, couldn’t help myself) and have dropped by about one third to $0.00044 and are nearly 50% lower in BTC terms Besides the price drop, it’s been a tough week as dogecoin wallets were the target of heists as millions of the coins were stolen by users of Dogewallet and Instadoge, two online wallet hosting systmems. Added to that a new competitor emerged, as the not so surprisingly named ‘catcoin’ was launched ten days ago, and pulling away demand for dogecoins as a result.
Too many coins?
When featuring dogecoins last week, among its main attractions is its massive coin base that provides easier mining as well as non-threatening appearance, with the idea being that the world needed a more readably available crypto currency to increase public awareness for digital currencies. These underlying concepts of dogecoin continue to be valid. However, the same viral actions that made dogecoin popular could be its undermining.
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Like any viral sensation, dogecoin is vulnerable to falling to the wayside to the next ‘big thing’. Partially this emerged as catcoins were launched and also became popular among digital currency miners and early adopters. As opposed to dogecoins, catcoins are aiming for the digital currency user appeal by focusing on its bitcoin like features of also using a 21 million coin float, as opposed to dogecoin’s ‘billions and billions’ served approach. Most of all, the emergence of catcoins brings to light the reality of the low barrier of entry to create and launch a new crypto currency.
Ultimately, while the day to day price moves of all of the alt-coins are fun to watch, the fact is that it took bitcoin in essence two years to become widely used enough to have an ongoing ecosystem built around it. It then took another two years, for bitcoins to become widely used enough to attract financial regulators and governments to investigate it. For the most part, bitcoin blazed a path for other digital currencies to make a name for themselves quicker. However, regardless of their cute names or how they are mined, their future is directly tied to whether anyone uses them or not.
In terms of dogecoin, its accessibility does provide it a chance to have long term staying power. But, realistically, it may take at least a year to discover whether dogecoins will survive or just become another fading crypto currency.