Dogecoin Founder: Bitcoin exchanges ‘one of the worst things’ to happen to market

Dogecoin has become one of the most popular digital currencies in the cryptocurrency market today. Established only a few months ago, the Internet meme-based virtual currency has grown to new heights and has become one of the top currencies for tipping.

Speaking at CoinSummit this week, Jackson Palmer, the founder of dogecoin, made the case that bitcoin is a currency instead of an investment vehicle and argued that exchanges have become “one of the worst things” to happen to the industry.

“Everybody here is sitting around thinking how much is my bitcoin worth in dollars,” Palmer told conference delegates and attendees. “The biggest challenge that bitcoin faces is investors. That will be bitcoin’s undoing, the fact that everyone cares so much about what it will cash out to in US dollars.”

DogecoinIn the end, Palmer explained that bitcoin is being marketed and promoted incorrectly. For instance, he does not provide exchange rates for his coin: one Doge is equal to one Doge. This is how, he says, bitcoin should operate.

Dogecoin has made headlines several times this year, including how the dogecoin community raised funds for Indian and Jamaican Olympic teams. The latest do-good story: dogecoin raising roughly $40,000 – other reports say $55,000 – to sponsor a Nascar driver.

A sponsorship fundraiser was held in support of Josh Wise, an up-and-coming driver who is considered an underdog. After just eight days, about 1,200 donations were made and averaged about $41. The car would now be covered in dogecoin and Reddit labels.

“I can’t thank the dogecoin and Reddit community enough for the support,” said Wise. “To the moon!”

  • Guest

    an up-and-coming driver who is considered an underdoge

    FTFY

  • Jon Stern

    It’s impossible to think that any currency will have it’s own independent market. It will always be traded and exchanged. Just like all the fiat currencies of today. We need to spend more Bitcoin and Dogecoin with vendors who don’t just drop it for fiat. The more businesses that use it and keep it in the ecosystem, the harder it will be to just buy on an exchange. Doge needs more value, and when a major players incorporate it into their promotions and marketing, the value will skyrocket.

  • ZMOSHAD

    Without a suitable economy, it’s impossible to think of DOGE/BTC/Alts as anything other than a vehicle for acquiring fiat. Until I can walk into Wal-Mart and buy a pack of steaks and case of beer with my Doge Coins, they will be an investment; Not a currency.

    • Rhian Hunt

      Exactly. While Mr. Palmer’s statements are interesting, they seem to me to miss the mark somewhat. For instance, there is no clear dividing line in today’s world between a currency and an investment in any case. Practically any currency can be exchanged for another, and people buy and sell them vigorously as investments in order to make a profit on arbitrage.

      Expecting Bitcoin, Dogecoin, or any other cryptocurrency to exist in some kind of splendid isolation, never to be converted, bought, or sold with other currencies, seems rather unrealistic, to be quite frank. In fact, it makes me question whether Mr. Palmer fully understands the concept of currencies at all.

  • Platonicgap

    1 Doge = 1 Doge. This is nice, but how many eggs is it worth then, if not Dollars or Yuan? Is it worth charm? (tipping?) Perhaps that is what Palmer means by this. How is charm measured? Doge I supposed.

    • r109

      At my local farmers market I found a guy that will exchange eggs for dogecoin. It’s not much, 1200-2000 depending on the exchange rate but for a dozen fresh eggs that can last me a good week. They hold onto the crypto currency and don’t exchange it for US dollar.

  • timrpeterson

    Jackson Palmer is wise.

    • Platonicgap

      Jackson Palmer is anti-establishment, if one is to categorize bitcoin as establishment. At this rate Dogecoin will be establishment within a couple months, but will it be valuable? I kind of doubt it.

      • adolescentghost

        It may not be valuable, but the better question is will it be useable. So far so good.