Published
1 year ago on
May 22, 2022
In 2011, the cryptocurrency market was valued at $10 million. According to Coinmarketcap.com's data, as of November 10, 2021, the cryptocurrency market was worth over $3 trillion, despite its fickleness over the previous decade. An exponential rise in the valuation of cryptocurrencies represents investors' interest.
At the moment, even cryptocurrencies marketed as stable cannot withstand economic tremors despite money flowing like water. As a result of rising interest rates, inflation, and economic uncertainty resulting from Russia's invasion of Ukraine, investors are pulling back from risky assets.
Meanwhile, those newly introduced to the cryptocurrency industry are advised to invest in cryptos that have a specific use case and are derived from a cultural significance. This will ensure that they have a value attached to them.
To understand which cryptos aim to create value, we must first understand the types of cryptos.
Based on their utility, we have broadly categorised cryptocurrencies into four types:
- Payments Currency: These aim to make cross-border payment transactions cheaper and faster. For example, Bitcoin (BTC), the world's first cryptocurrency, was made for this utility.
- Stable Coins: Cryptocurrencies deriving their value from an external asset come under this category. For example, USDT derives its value from the US dollar.
- Object: Many investors believe this is where the future of cryptocurrencies lies. These types of cryptocurrencies were created to finance special projects to solve the world's problems. NFTs, DEFIs, and dApps fall under these categories.
- Meme Coins: These were created solely for fun, with no specific purpose or goal, yet they are valued by millions now. For example, Dogecoin (DOGE) was created as a joke and is supposed to facilitate "InterPlanetary Money Transactions" when it becomes viable.
Cultural Significance of Meme Coins
It is important to note that meme coins aren't intended to be investments or stores of value, as social media heavily influence them. Elon Musk, for instance, has constantly praised them, calling them to be more useful than Bitcoin (BTC) and Ethereum (ETH).
In addition to meme coins, other aspects of popular culture have continued to be influenced by community members.
Dogeminer, for example, simulates Dogecoin (DOGE) mining in a virtual video game. In a fun and approachable way, it introduces new players to the basics of cryptocurrency mining. This has led many to become more involved in the crypto community.
Another example of cryptocurrency's impact on social media and popular culture is tipping artists on Reddit, Twitter, and Twitch to promote their art.
Furthermore, community members are known for their charitable spirit. They have supported several donation campaigns, from silly to noble.
