It’s one of those things that has to be said with an exclamation point. Those of you who have not heard of cryptocurrency are probably wondering what a dogecoin is, and those of you who have heard of cryptocurrency are probably slapping your foreheads and wondering what I’m thinking and why I’ve gotten myself wrapped up in one of these ridiculous things that have flooded the speculative commodity market.
To the former group, a cryptocurrency is a currency that exists entirely on the Internet. An individual keeps a little data on his or her computer and he or she gets access to a wealth of, well, wealth. Each of these currencies is distributed to people according to various mechanisms and then spreads around the world, much like any other good or money, via trade and gifts. These cryptocurrencies have become exceedingly popular, and now hundreds of them are in existence, each one slightly different from the others. That’s essentially all you need to know about cryptocurrency to get the general idea.
What makes DogeCoin stand out from its ilk is its community. Dogecoin is based on the “Doge” meme.
This is a specialized member of the animal caption family of memes involving a particular shiba inu making a strangely distrustful expression. Much like the LOLcat, the Doge features a particular made-up dialect unique to itself. “Wow” begins many sentences of Doge-speak, generally followed by a vague emphasizer (“much,” “very,” “so”) and a word that does not grammatically fit that emphasizer (“much successful!” “very altruism!” “so scare!”). One commenter has provided a link to a more detailed linguistic analysis of Doge-speak. The doge face itself has been reproduced in a vast array of different forms.
Why does the fact that DogeCoin is deliberately goofy in a relatively well-defined way make it a more valuable commodity? Simply put, it’s fun. The people attracted to DogeCoin are not just intimidating high-stakes traders, die-hard libertarians, and the impenetrable cryptography geek community, anyone with a computer and an appreciation of silly pictures of animals could be coaxed into becoming a “shibe” (pronounced “Sheeb” or “Shibay”), a member of the DogeCoin community.
As an owner of a DogeCoin account, I recently accepted 150,000 DogeCoin from my roommate Nate as collateral for a loan of $200. When Nate paid me back, I announced on the DogeCoin subreddit (a forum for DogeCoin enthusiasts) that I had just completed the first recorded DogeCoin-backed loan. A couple days later I’ve received forty-four comments and over 200 DOGE in “tips,” which are an easy way to give small amounts of DogeCoin to posts that one appreciates on the DogeCoin subreddit. Currently a DogeCoin is worth approximately a tenth of a penny, so that’s twenty cents.
That’s not the point, though. The reason that DogeCoin is valuable is because DogeCoin doesn’t have to be valuable. It’s the first cryptocurrency to have a community that likes it for more than just the money they could supposedly make from it. At one tenth of a cent per coin, DogeCoin has inspired my roommate to make a service to sell people Robusta coffee beans for DogeCoin, and it inspired my other roommate to buy a collection of high-end computing hardware and run a process to get him DogeCoin. If you remember the last post of the “The Cold Apartment” post series, the purpose of the rig that was heating J’s room was to mine DogeCoin. It inspired me to write this post to explain the phenomenon. DogeCoin also inspires people to do good, spawning the “DogeCoin Foundation,” which shortly after its creation scrabbled together enough funds to send the Jamaican bobsled team to the winter Olympics. If you’re ready to be inspired, here’s a video to confuse the heck out of you: