Dogecoin has been in the news quite frequently in recent times. Some will attribute it to Elon Musk, the founder of electric car manufacturer Tesla, and a tech visionary personality, who became the CEO of the coin. Of course, Musk becoming CEO was as much a joke as the launch of Dogecoin itself.
However, Dogecoin is not hitting the news only because of a famous billionaire’s Twitter prank, but because of a slide in its price that has been talked about in cryptocurrency circles for quite a while now. Subsequently, proponents of the coin, including the legendary McAfee, are adamant that the price will soar, taking it to the moon in terms of relative worth.
Dogecoin is not like the others
John McAfee had a few words to say about Dogecoin on the 27th of May that many in the community are echoing. Unlike some of McAfee’s rants, this has some solid thinking behind it. Dogecoin specifically, and the cryptocurrency market in general, do not follow the laws of the stock market. They follow relatively different rules that are divorced from the notion of traditional views of inherent value.
Crypto’s inherent value is usage-based – how many people feel a need to use a coin because of its ease of use. The underlying technology isn’t as important as the reason people use technology. This is something that has been particularly illustrated by Skype. It is an aging technology that is slower and much more fragile in the back end than anything else.
Skype has had a headstart on the mobile phone by a few years at least. Not too long ago, Whatsapp and Viber took market share away from Skype to the point that older people will use it exclusively to talk with their relatives overseas. Or maybe only some businesses would use it for meetings.
The catch? Whatsapp and Viber are both more straightforward to use than Skype – and that is what drives adoption.
The technology might be better, they might have the ever-presence of mobile phones on their side, but the fact remains that they are far, far easier to use than Skype.
— Samu (@QuodSemper) July 1, 2019
This is also the reason why many in the community are demanding that Binance and Coinbase introduce Dogecoin into their offerings. There is a demand that needs to be met. If the community can push these giants crypto exchanges of the world to kowtow to them, then it will be a significant victory.
Curves looking positive
The overall negative trend that Dogecoin has been seeing is nearing a bottom, and there has been a sharp uptick in price from a low of $0.0030 to a more stable level of $0.0035. The trend shows that Dogecoin is hitting the second major bottoming out and that while bearish sentiment might prevail for a time, it will be hitting highs of $0.004 sooner rather than later.
What the highs of the coin might reach given enough time is impossible to predict – but the smart money is in the Dogecoin gaining substantial value once this bottoming out gets finished.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.