DogecoinWhat’s the big deal?

By Michi Kono March 18, 2014

What’s Dogecoin?

What makes Dogecoin special?

Dogecoin and entrepreneurs?

Digital Currency Entrepreneurship & Startups

What will YOU learn?

Digital Currency Entrepreneurship & Startups

On Dec 8, 2014, this joke became serious:

Digital Currency Entrepreneurship & Startups

Dogecoin Facts

• Top 5 on volume and market cap out of 170+ crypto-currencies

• Raw transaction volume second only to Bitcoin; volume in dollars is third overall

• Primarily an online tipping currency on sites such as Reddit or Twitter

• 1 DOGE = $0.00077 (A.K.A. 1298 DOGE = $1)

• 50 billion Dogecoins have been mined; to be100 billion by 2015

Digital Currency Entrepreneurship & Startups

Volume

Raised $50,000 for the Jamaican Bobsled Team on January 19th, 2014Newsworthy

Achieved status of fastest growing sub-Reddit (several times) since launchSocial

Moved $68k in tips on Reddit over 3-months (http://i.imgur.com/DgIyRgZ.jpg)

Tips

Exceeded trading volume of all other cryptos combined less than 1-month after launch

SUCH GROWTH much potential

Feb

Jan

Dec

What happened?

The decline of Mt. Gox caused all crypto-currency valuations to stall due to increased consumer pessimism toward the currencies.

Users of Cryptsy, the largest Dogecoin exchange, begin reporting withdrawal and trading issues which have continued into March.

!http://www.dailydot.com/news/dogecoin-cryptsy-mt-gox-bitcoin/

A major mining exploit was patched, reducing trading volume (and prices) due to less miners participating in the network.

!http://www.cryptocoinsnews.com/2014/03/13/dogecoin-forks-again-to-avoid-multipool-exploit/

BTC Crashes Exchange Woes Mining Exploits

Digital Currency Entrepreneurship & Startups

Not all is well in Shibe-land

Digital Currency Entrepreneurship & Startups

How is Dogecoin Different?

• Huge community with massive trading volume

• Very fast transaction confirmations (1-minute block time)

• Infinite inflation (no coin cap)

Digital goods

Publisher monetization

Crowd funding

Porn*

Ideal attributes: social participation or zero-cost goods

Digital Currency Entrepreneurship & Startups

Best Places for Dogecoin?

Digital Currency Entrepreneurship & Startups

Digital Goods

• Low risk to early adopters due to “zero” cost products

• Instant payment => Instant product transmission

• Micro-transactions for micro-features or goods

Digital Currency Entrepreneurship & Startups

Crowd Funding

• Leverages the communities

• Builds on organic activity

• Micro-transactions (many-to-one) are expensive and risk prone with credit cards

• Credit card fraud is time delayed, but crypto-funds are instant and permanent

• Real life example: Raising $11,000 for water in Kenya (http://onforb.es/1ixuLWv)

Digital Currency Entrepreneurship & Startups

Publisher Monetization (via tipping)

• Leverages the communities

• Builds on organic activity

• No-cost to publishers (adoption is simple)

• Per article/comment/usage/feature fees possible due to low transaction cost

Digital Currency Entrepreneurship & Startups

Porn

• Fraud is a huge problem in Porn (“I don’t recognize this charge”)

• Payments can be anonymous (no name or billing addresses needed)

• Services can be paid in real-time through metered micro-transactions

• Payments are final (just like cash)

• “Tips” are part of the Dogecoin culture

*http://www.foxnews.com/tech/2014/02/27/fox-on-reddit-porn-star-looks-to-accept-virtual-currency-on-website/

Thanks, Lab Zero (our host)

Michi Kono

Visit our host at http://labzero.com

Visit the Meetup page at http://meetup.com/digital-currency/

Contact the author at michi.kono@coinposit.com