Fast and cheap.
Even though the Crypto market does seem to disagree.
It often does with logic.
Really have to state that I was not expecting Dogecoin to stay behind right now. Sure, it is one of the more stable Cryptos out there. That is the case when looking at the amount of transactions per day. Or the stable difficulty level and the amount of Hashes per second. Since DOGE got Auxiliary Proof Of Work {auxPOW} it got into the realm of the big ASIC pools. It is like sharing the calculation work done between the same kind of blockchains. That can speed up the time to find the right solution for a block. With this code update in the beginning of 2018, the developers moved Dogecoin to another level. And contrary to what some belief, Dogecoin is still being developed, just not by the original developers anymore. It is the fun Crypto out there, with a strong brandname, so why does it stay behind, being in the red, during the big purgening? Frankly I am stunned by watching this whole drama unfold. Even if I was expecting a firm and rough cleansing, behaving chaotic over all, so far it is even worse than I thought it would be. At some point I even thought that this was going to crash Bitcoin below the 1000 USD bottom.
The market still does seem to be about selling at every little peak, cashing in on a short upward movement. No coherency so far. One group moving in the green, the other still in a downtrend. Sure the market capacity value is never connected to the absolute real value, it is only calculated using the latest high. Either buying of selling at high volumes will change the value right away. In a sense Dogecoin is behaving pretty stable, in line with the overall market movement. And that is where the Cryptos that will come out on top after the big cleansing will show that they survived the hard purgening (yes I know, it is supposed to be written as: 'purging'). Empty air, or virtual value will be released, or the total market capacity will be compressed. Pushing out all the pumped value that got in during the Crypto Gold Rush peaking at almost 836 billion USD value on january the seventh of 2018. Where the first drop took it down to close to 248 billion, 3 months later around april the 7th.
It seems to me that the Cryptos is about back a the level of gain where it took off since the 7th of november 2017. Growth until then was steady to somewhere around 197 billion USD. After that peaks of over 34 billion USD 24 hour trade volumes started to appear. Even going up to 71 billion USD within a day. That was just before the highest total market capacity peak, the final pumpening. Drawing a virtual line towards the here and now the total market capacity could be around 234 billion USD. And it already moved past that value, at time of writing at 252, therefore it looks like it is recovering. Still uncertain though, it could be deflated towards that 234 USD. If that does not happen within the next week, and the market overall goes in the green candles than the cleansing might be over sooner than I had expected.
What about DOGE...?
Phew that took me a few paragraphs... Still I do get back to the title, via a detour, yes, apparently I did, but did I now? Dogecoin is true to the original Bitcoin whitepaper by the legendary Satoshi Nakamoto. (Whether it is a they or a she/ he I leave up to you to decide, I read it as we being a plural form.) Where Bitcoin, BTC, did not deliver the promise, as some claim, Dogecoin, DOGE, seems to do so. Although I do find it quite gushy how some in the Cryptos realm try to trash the original Bitcoin, BTC, as not being a true Peer To Peer Electronic Cash System. While it is in every way, as far as I see it. It is just about moving value from one point to another, there is nothing in the original whitepaper about how much it should be worth. One BTC is still one Bitcoin. Nor was there a cap put on the amount of Bitcoin ever to be released. The rest is up to the Free and Open Source development community and the free Crypto market of supply and demand. Still Bitcoin seems to be more suitable to move high value per block transaction. As it is okay to have millions to billions moved all over the world, secured by 6 confirmations within an hour, or so. (That the whitepaper is a bit outdated and not even that visionary shows a sentence like this though: ...They vote with their CPU power...)
Dogecoin is, due to its 60 second blocks and cheap market price, very well suited to act like a cold-hard-cash version of the digital-gold-version that Bitcoin, BTC, has become in essence. While the banking system anywhere in the world want to get rid off cold-hard-cash, Cryptos like DOGE can take over that function. And it seems countries like India already understood this, trying to outlaw the free peoples money, which Cryptos basically are. Of course they the government of such a country gets all the help from the banks they ask, or is it the other way around? The weak spot in the whole Cryptos realm is the part where exchanges to so called fiat money are still wanted. As this is where the Banking Monetary Governance {BMG} system still is fully in control. Therefore, Bitcoin, BTC, should become the digital equivalent of gold standard. And the realization that in time fiat money will become useless, or just a competitor for Cryptos after it has been completely digitized, might help for BTC to become indeed extremely, relative, expensive within the next couple of years. Where as Cryptos like Dogecoin will buy one a cup of coffee, cheap and fast.
But, but, bitcoin cash...
You may know that I am not a fan of bch {bitcoin cash}. There are many reasons why I consider that particular hardforking blockchain spliting clone a farce, to state the least. And now I am being quite nice to that business controlled wannabe Bitcoin. As far as I see it that is why it was constructed as it was in the first place, to be used as a business tool. Now, mister R. Ver has made that clear, wanting to use it for his gambling services. And that is alright with me, using a Crypto for gambling purposes, only by attacking the true and and only Bitcoin, that is another thing to me. Just like mister C. Wright made it very clear that he wants to use it for business. That is the whole point, as I see it, why they enforced a hardforking blockchain splitting clone, called bitcoin cash.
Instead of creating a real fork, starting from zero, or genesis. That is why I do not have a lot of respect for them and their rip off bch. They took the so hated Bitcoin, BTC, Core code and just ripped out what they did not want in, changed the blocksize and fogged up the difficulty code to be able to enforce a longer chain without the need of a mining power majority. Then a centrally controlled Token was released on some major exchanges, creating a virtual value up front. So when they managed to artificially lower mining difficulty and use the support of the Chinese ASIC mining equipment company Bitmain to pump out blocks even with just a 'few' Exa hashes per second the virtual value of almost 17 million bch was right then and there. Why? Because they took the already Bitcoin, BTC, mined coins and claimed it to be theirs. Now, if you wonder where some fake value resides that still needs to be compressed out, let me take a part out off the original Bitcoin whitepaper, that does fit what the business people connected to bitcoin cash did and still are doing, as seen from my point of view:
- Calculations
We consider the scenario of an attacker trying to generate an alternate chain faster than the honest chain. Even if this is accomplished, it does not throw the system open to arbitrary changes, such as creating value out of thin air or taking money that never belonged to the attacker.
Dogecoin is better suited for business.
Karma is a strange thing and just as I expect that the_banking monetary governance_ system will experience this for trying to get rid off cold-hard-cash, I expect that the government of India is in for a nice treat of Karma. Cryptos are here to stay and it will be hard to stop. DOGE can be a digital alternative for cold-hard-cash, the digital equivalent of it, just like Bitcoin, BTC, is of gold and Litecoin, LTC, is for silver. Yes, I know, Bitshares, Steem, EOS and DPOS {Delegated Proof Of Stake} blockchains can do way more transactions, proven as such. But, their account registration based system is more like that of a banking account. It even goes towards proof of identity. And even though it serves a lot of different purposes, it can not replace the function of cold-hard-cash, as the banking monetary governance system is destroying it. Because cold-hard-cash is semi-anonymous and easy to use. Maybe the digital equivalent of it is even more convenient, because it is safer to use, both for the consumer as the business side. Except the volatile part, but that might be connected to the extreme devaluation nature of the so called fiat money Cryptos are still linked to.
There is room for many Cryptos, even after the cleansing. Ones that do serve a purpose. In that whole picture something like Dogecoin, DOGE, fulfills a real purpose. Maybe the value could go up to about, compared, one dollar cent, when it does like a 100'000 transactions per 24 hours. But it will mainly serve as a digital equivalent of cold-hard-cash, cheap, fast and easy to use. Where even buying a piece of candy would almost add nothing to its price, even when DOGE were to get to 1 USD comparable value. So let part of the gambling business use their own bitcoin cash with its virtual value, while they have to compete with their own fork Bitcoin Core, BTCC. No way that bch will ever be as cheap, fast and easy to use as Dogecoin. And as far I can see it, the business people that enforced that hardforking blockchain splitting clone bitcoin cash, never intended to stay true to the Bitcoin Whitepaper, they just wanted their share of the Crypto wealth pie, whatever it would take. They just took a big gamble and time will tell how Karma will serve them.
In the meantime, I will watch Dogecoin, DOGE, closely and will use it as the digital equivalent of cold-hard-cash. Like I did before, just as I am HODLin' my BTC and LTC, as if they were gold and silver. While I play around a little at the Bitshares decentralized exchange, post at Steem and explore the voluntarism realm of EOS. There are many more interesting Cryptos out there, that will survive the hard purgening, because they proof to be useful, as they serve a purpose. Like there comes to mind: Gulden {NLG}, DASH, DigiByte {DGB}, Vertcoin {VRT} and many others. There will be need for those that are like something equivalent to the analogue realm of cash, diamond and gold, but also soil and houses. And there will be use for those like EOS, Steem and Bitshares, that are account based, using smart contracts and working with mutual agreements. This is not about a competition, a race to be won by one or the other. It will be about what purpose any Crypto serves and I think that will become more clear in the months to come. And somewhere in there I see Dogecoin in the top 30 of the Cryptos market, at least. While the DPOS blockchain family members are top ten material. At least when it comes to raw hardcore transactions per day. Now if only the market would understand...
May the Cryptos be with us!
PS Remember to only invest in Cryptos what you are willing and able to lose!
The true P2P Electronic Cash System is Dogecoin.
Image CC0 licensed.
Source Bitcoin Whitepaper: https://bitcoin.org/bitcoin.pdf
Source Blockchain Activity: http://blocktivity.info/
Source Crypto Market: http://coinmarketcap.com/