A feature of money is its network effect: being a medium of exchange. IF an altcoin is just being speculated, it kick-starts its network effect, improving its “improvement delta” beyond its technical merits. Once it reaches escape velocity (people coming on board due to a lot of people already being on board, like Litecoin), it’s in the clear. Being in the right place at the right time is often enough.
Looking at Dogecoin, a clear jokecoin (or memecoin), its added social features are the backing of a massive meme AND the fact that people see it as a joke/lighthearted . . . which might be enough to kick-start its network effect into escape velocity.
I won’t be surprised if Dogecoin becomes a top 10 coin.
2013-12-14 | Full Review