Dogecoin Soars: When Humor Becomes a New Perspective for Value Creation

This article is from the Medium community, authored by Richard Knight and compiled by Chain Catcher.

From a joke currency that was initially released as a parody to now being one of the largest cryptocurrencies in the world, Dogecoin has achieved an astonishing growth of 22,879% in the past 12 months.

As of the writing of this article, Dogecoin's market capitalization has surpassed Ripple, making it the fourth largest cryptocurrency in the world, with a market cap that even exceeds the GDP of many countries.

It is safe to say that Dogecoin's performance in terms of popularity and market share is remarkable. If the world weren't watching this story unfold, it would be hard to believe this new phenomenon. Dogecoin is also considered a valid proof of the potential of cryptocurrencies.

If there was ever an underdog, its name was Dogecoin.

So, how has this joke become so popular and valued today? What exactly happened to Dogecoin?

The Beginning of the Wave

In late January, during the highly publicized GameStop incident, Dogecoin became the center of attention once again. The GameStop event led many frustrated traders to enter the cryptocurrency space, and the humorously themed Dogecoin became a popular choice among them.

Additionally, with the support of Elon Musk, Dogecoin's online community has been growing, becoming increasingly mainstream. Dogecoin has rapidly evolved into a cryptocurrency superpower, with a community of supporters whose goal is to drive Dogecoin up to $1.

However, the recent popularity still does not explain the uniqueness of Dogecoin, nor does it clarify the reasons behind its initial explosion.

What Makes Dogecoin So Unique?

Can we look beyond Dogecoin to better understand how an underdog can become strong despite many adverse factors?

In a report titled "The Most Honest Altcoin" written by Galaxy Digital Research, they conducted an in-depth analysis and commentary on such parody currencies over 22 pages, where we might find some answers.

The report is quite detailed, mentioning several positive factors and many negative ones, ranging from limited development (almost no value in 2017) to the inflationary nature of the currency. But what I find more important is the conclusion of the report:

At this point, I would like to continue from where they left off.

When discussing what makes Dogecoin so special, perhaps we need to examine the value that Dogecoin provides from a technical analysis perspective, or more precisely, its exchange value. In the case of Dogecoin, I believe it represents an intangible quality that we have yet to clearly define.

The Doge culture has entered a space that transcends borders and does not require any language (except for broken English).

Dogecoin taps into something very human within all of us and provides a mechanism for expression, which is "currency."

What is Doge?

Doge is not just a cryptocurrency; it has become a phenomenon. It is an idea (i.e., Meme) that crosses languages and cultures, synonymous with the quality of humor that we all share and love.

Doge is a feeling, a community, a mutual entity, and a mechanism for spreading joy and enjoyment—just ask today's smiling Dogecoin investors.

In the case of Basic Attention Token (BAT), which can exchange personal attention value, Dogecoin can be seen as exchanging value for humor.

A New Era of Wealth Creation

Cryptocurrency is not just a way to make money. It is a manifestation of a community supporting an idea, belief, or value.

In this digital age, we see the power of ideas, beliefs, and values when shared within a sufficiently large community, as we have recently seen with the GameStop Reddit community and Dogecoin.

This article is not about Dogecoin per se, but about what Dogecoin represents within the cryptocurrency community. To me, Dogecoin represents a new perspective on humorous currency and value creation.

Humor as a Medium of Communication

Can humor really become a medium of communication? Whether you agree with my point or not, what we see is that investment (e.g., GameStop) and the cryptocurrency space are growing, with strong communities built on a series of shared beliefs, attitudes, and feelings.