Charlie Lee States on the Record That Dogecoin Has Value for Transactional Purposes

Written by Brian Nibley - Reviewed by Coin Review Team

Published: Nov 13, 2018 | Last Updated: Nov 28, 2018

Dogecoin is often criticized as being worthless and overvalued. The coin created after a popular dog meme now has a market cap of over $400 million. But according to Charlie Lee, creator of Litecoin, DOGE has value because it can be used for transactions.

2024-12-09T09:16:33+00:00

Dogecoin Cryptocurrency used as a digital payment network for transaction. Shutterstock images

Charlie Lee is the creator of Litecoin. During a recent fireside chat at San Francisco Blockchain Week 2018, Charlie stated that Dogecoin (DOGE) has value.

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This may not seem like a big deal, but it came as a shock to many, including the interviewer who inquired about the coin.

The question had to do with DOGE being overvalued at a market cap of over $426,000,000, according to Coinmarketcap.com.

Charlie Lee’s response was to begin by saying that Dogecoin is “pretty cool.” He went on to add that the whole point of crypto is transaction and DOGE works quite well for transactions.
Because of this simple fact, DOGE has value, Lee concluded.

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So, why do many people disagree? Dogecoin’s comical history combined with some real criticisms come into play here. Let’s examine why DOGE just won’t die.

The History of Dogecoin

DOGE was basically created as a joke.

The Dogecoin logo features an image of a popular dog meme. It’s highly likely you have seen this meme at some point in the past.

From the Dogecoin website:

“Doge” is our fun, friendly mascot! The Shiba Inu is a Japanese breed of dog that was popularized as an online meme and represents Dogecoin.

Dogecoin simply labels itself as “the fun and friendly internet currency.”

The DOGE network uses the same proof-of-work (PoW) consensus algorithm as many other mineable coins like BTC and LTC.

The DOGE wallet is easy to use and anyone can afford to get a few DOGE as they only cost about a third of a penny at the time of writing.

A breif history of Dogecoin digital crptocurrency. quoracdn.net

Historically, the price of DOGE has been lower still, while at one point it was higher than one penny per DOGE.

One of the most popular applications of DOGE is for “Dogecoin tipping.”

People often tip creators of their favorite content using DOGE because it’s a cheap and easy way to send a small amount of money to anyone in the world.

While the Dogecoin blockchain has nothing unique about it, the coin has value due to its ability to make transactions and its ease of use.

DOGE is the 24th largest cryptocurrency by market cap as of November 2018.

Despite having a huge market cap, most people don’t take Dogecoin seriously. After all, it was created as a joke in the first place.

And some of the most common criticisms are valid in many ways. It’s true that DOGE has some serious shortcomings.

But that doesn’t detract from the fact that it still has value as a transactional currency.

Common Criticisms of Dogecoin

Meme-based cryptocurrency DOGE is often criticized for its value. bitdegree.org

DOGE is a special breed of cryptocurrency. There is no other coin quite like Dogecoin.

While it doesn’t have any special features per se, it does have a pretty cool dog meme behind it. Doesn’t that count for something?

Apparently, it does. DOGE wouldn’t have survived this long if it didn’t. On top of being entertaining and fun, the coin has real value.

But some critics like to focus on other aspects of the coin. Namely, its lack of a steady development team and special features.

Limitless DOGE is Less Than Special?

Many people criticize DOGE on the grounds that it has no unique application and no supply limit, as mentioned. But because it can be used for transactions, DOGE still has value.

The fee for sending DOGE can be as little as 5 DOGE, with each coin being worth a fraction of a penny (Dogecoin’s all-time high in early 2018 was just over one penny per coin. In November 2018, this fell to just over a third of a penny per coin).

While many people seem to think the DOGE market is highly overvalued at upwards of $426 million, others, including Charlie Lee, believe otherwise.

The ability to send a large sum of money in a short amount of time and for a tiny fraction of a penny gives Dogecoin its value.

To find out insider news, before-the-public, I advise you to bookmark www.blockchainwhispers.com

No Dev Team Equals No Future?

Some people believe that Dogecoin is doomed because it doesn’t have a dedicated development team.

Ross Nicoll, a Dogecoin developer, told Coindesk last year that DOGE is far from dead , and likely has a long life ahead of it:

As it stands today, dogecoin likely won’t see a technological death.

The current core devs are adamant about keeping the network running for the community – as long as there are people that want to learn about cryptocurrency via experimentation, or more serious users that still purchase digital goods and items on Steam, a marketplace for PC games. Nicoll said an update for dogecoin will likely come very soon since bitcoin has gone through two or three upgrades focusing on performance and user interface improvements since dogecoin was last updated in 2015.

“That all tips an upgrade towards more reward than risk,” said Nicoll.

Dogecoin is merge mined with Litecoin which is created by Charlie Lee. cointelegraph.com

It’s interesting to note that Dogecoin is merge mined with Litecoin, the very coin created by Charlie Lee. Some argue that this gives a false sense of security to the Dogecoin network, as people may only mine it while they mine Litecoin.

But if Litecoin is widely recognized as having value, and the LTC network gives the DOGE network security, then why wouldn’t DOGE also have value?

Charlie Lee Speaks the Truth About Dogecoin

In conclusion, Charlie Lee appears to be correct about the meme-based currency called DOGE.

The fact that even a cryptocurrency created as a joke can continue having value throughout the years speaks volumes about the nature of blockchain and crypto.

While people like to put DOGE down based on its past, no one can deny that the coin has stayed in the top 30 cryptocurrencies by market cap for over a year. That alone shows the interest in using DOGE.

Cries of the death of Dogecoin are even more intense than those for the death of Bitcoin. Yet none of these memorials ever seem to materialize.

Despite having a somewhat shoddy development team, unlimited supply, and lack of special features, DOGE appears to be here to stay.

Image Credits
Feature image: Shutterstock.com
In-Post Image: quoracdn.net, bitdegree.org, cointelegraph.com

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Disclaimer

The writer’s views are expressed as a personal opinion and are for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.