Blockchain and cryptocurrencies are an integral part of our future, but they are intimidating and confusing to those who are not yet familiar with this technology. It has come to our attention that there is definitely an audience for a more basic approach to blockchain, cryptocurrencies, metaverse, web 3.0 and related topics.
To that end, we are publishing a series of content like this that we hope will be useful to our readers. This article is about the basics of meme coins. Keep in mind that what we are telling you is not impossible to learn; it just requires patience. At some point, everyone is inexperienced.
What are meme coins?
At their most basic level, meme coins are, in fact, cryptocurrencies. They are an ‘ altcoin ‘, meaning they are any cryptocurrency other than Bitcoin. The name meme coin originated with Dogecoin (DOGE); a cryptocurrency created on the basis of a meme in late 2013. Ironically, Dogecoin was created as a joke, based on the popular ‘Doge’ meme at the time, and was intended to poke fun at Bitcoin speculation. It was not originally intended to become a form of payment for products.
Dogecoin became one of the most speculative cryptocurrency investments of the next 8 years. In the end, it has been added to currency exchanges, used for tipping, and today even the Dallas Mavericks of the NBA accept it as a form of payment. Other dog-themed knockoff coins followed suit, as well as thousands of other types, many of which have legitimate charitable causes and digital assets attached to them.
Hang on a minute. Was Dogecoin originally intended to be a JOKE?
That’s how it is. One could argue that it still is. For the most part, the coin isn’t even attached to any digital product of value, like many other meme coins. Regardless, it proves beyond a shadow of a doubt that while cryptocurrency (like many other assets) has no intrinsic or fiat currency value, it still has the economic value that investor find it attractive for investment and still holding on to it.
One of the driving factors for the rise of Dogecoin was its endorsement by Elon Musk. The CEO of Tesla is widely perceived as one of the smartest people on the planet, so when he started looking at cryptocurrency, everyone else did too. One of two, she either saw the value of a community-driven coin, or she was part of the joke. A third possibility, of course, is that there is a bit of both.
At the time of the last review, people were willing to pay approximately 13 cents for a Dogecoin. Despite the cryptocurrency correction that has affected virtually every digital currency in existence, had we bought $100 worth of Dogecoin in March 2015 and held it, we would now have a couple of hundred thousand dollars in our wallet.
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So are meme coins just a fad?
It seems not, although it is difficult to predict what will happen in the future. Currently, the market seems to be excited, but there are still meme coins taking off if one knows where to look.
The reason these coins could be more than just a fad is because of the community. They are not fiat assets, but whenever a token is held by a large community, and everyone accepts its value, the value inherently increases. This is known as the “Network Effect”. A decentralized organization like a blockchain community can achieve this just as easily as a geographically centralized one.
In summary
We want to emphasize that do not take this article as financial advice. We are simply making comments and giving our opinions. Make your investment by keeping in mind that you can afford to lose what you are investing, Be watchful of the market situation and be careful.
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