The sudden increase in Dogecoin’s price last week

Dogecoin is one of the first “altcoins,” or cryptocurrencies, which appeared a few years after Satoshi Nakamoto, a pseudonymous figure, first released Bitcoin into the wild. Dogecoin isn’t very revolutionary in terms of technology. It is based on the source code of Bitcoin, like many other early altcoins.

To put it another way, it’s built on Litecoin, which was based on Bitcoin — but with a few tweaks, including quicker transactions and eliminating the supply limit. However, when seen through a cultural prism, Dogecoin at becomes even more intriguing. Software engineers Billy Markus and Jackson Palmer invented the cryptocurrency, but Palmer, an Australian, has since left the project. They gave it the Doge moniker partly to be amusing and distinguish it from Bitcoin’s dubious image as a currency for illegal transactions at the time. Dogecoin has now outlasted almost all of the early derivative altcoins and has a flourishing investor group. Dogecoin holders supported the Jamaican Bobsled Team in 2014. They soon became sponsors of a NASCAR driver.

Collectivism fosters innovation.

Dogecoin was created as a joke to mock cryptocurrencies, but fate is a fan of irony. Dogecoin being the world’s currency in the future will be the most ironic result. On the other hand, Dogecoin is better seen as a cultural product rather than a financial asset. Few people use cryptocurrency as a serious investment or for everyday transactions. Rather, owning Dogecoin entails being a part of society. People buy it because it’s entertaining to have, and it comes with a warm and friendly community experience. The sudden increase in Dogecoin’s price last week makes sense if we think of cryptocurrency as a cultural commodity. The increase came just days after a meme-centric crowd drove the stock price of videogame retailer GameStop from $20 to US$350 in a matter of days. This swarming behavior had never been seen before, and it scared the world’s financial markets. The fact that so many people were having fun on the Reddit forum r/WallStreetBets — which orchestrated the assault on the hedge fund that had essentially bet on GameStop’s stock dropping — was especially fascinating. It’s no surprise that the Dogecoin operation has a similar tone; the currency was created with fun in mind from the start.

Doge is an internet symbol.

Some people use financial markets for consumption as well as investment. They use them for entertainment, recreation, and social interaction. When opposed to financial assets, cultural assets like Dogecoin are difficult to value systematically; similar to how we don’t have a fundamental theorem for pricing art. The desire for a meme coin would almost certainly fluctuate as wildly as internet culture itself, transforming cultural bubbles into financial bubbles. Ellie Rennie, a crypto-ethnographer and RMIT scholar, refers to these as “playful infrastructures.” We will learn a lot about the interaction of technology, culture, and economics by closely examining Dogecoin. Before investing, you can check DogeCoin news for more information.