Simultaneous tears of laughter and tears of sadness were shed when readers of Business Insider and Yahoo! Finance were graced with the doge:
An Internet meme’s lifespan is usually pretty short before its comedic effect wears off, but somehow this five-year old joke has made a comeback because of the cryptocurrency surrounding the meme.
If that isn’t funny, it definitely is sad.
Step aside Benjamin Franklin. Can you imagine non-Internet bubble folk like your parents or grandparents trading in currency with the doge face on it?
All kidding aside, most finance readers can see the obvious ridiculousness of it all, and even the founders of DogeCoin admit how much of a hysteria has encapsulated cryptocurrencies in general.
Here is the key quote from the founders in the article:
As for Dogecoin, Palmer, a group product manager at Adobe, and Billy Markus, a software engineer at IBM, created it “without much real thought,” according to reporting by Motherboard.
As Palmer told Motherboard’s Patrick McGuire, “one night after work, I sat down with a beer, I had too much time on my hands, and I bought Dogecoin.com.”
Markus stepped in to help make Dogecoin an actual digital currency.
As I stated repeatedly in my previous crypto articles, the “scarcity paradox” is what makes the fundamental value of cryptocurrencies zero. You cannot enforce scarcity with software, but you can make it more efficient and more practical. It is that powerful, rapid, iterative process that makes software valuable. When you reach a zenith of feature-rich well-designed software, you can reproduce it at very little overhead and sell the intellectual property at high profit margins. This is why software companies like Apple, Google and Microsoft succeed in the software space of operating systems.
However, cryptocurrencies are not software companies. You don’t want to be able to reproduce cryptocurrencies if their perceived value is based on scarcity. Yet, here is DogeCoin and many other crypto clones, literally conceived in one night.
You can employ blockchain as much as you want for accounting purposes if the bartered currency has actual scarcity backing it, but the blockchain algorithm alone does not solve the “scarcity paradox”.
Perhaps DogeCoin does have some intrinsic value: it certainly has more comedic entertainment value than most other cryptos and the longer it survives, the funnier it gets.
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