While most people are familiar with Bitcoin and Ethereum, these two are not the only cryptocurrencies in circulation. Meme based currencies have gained a huge following lately. Meme Coins, as the name suggests, is a type of cryptocurrency inspired by memes, which are funny or humorous ideas captured in a photo, video, or other forms of media. Dogecoin and Shiba Inu are currently the most popular meme coins in the cryptocurrency world. These coins, while often made as a joke, have the potential to become mainstream. In 2021, for example, the value of Dogecoin shot up multiple times.
So, should meme coins be taken seriously?
Because many meme currencies have a never-ending supply and their appeal is largely based on pop culture, they are extremely volatile and vulnerable to rapid price swings.
For example, the Doge meme was inspired by a viral photo of a Shiba Inu and led to the creation of Dogecoin. While these cryptocurrencies are not meant to be taken seriously, they can gain momentum when community members buy a coin to be part of the prank.
How do meme coins become popular?
When a coin becomes popular and its value rises, ordinary investors can jump on board, further increasing its value. Famous internet figures and celebrities also help boost the popularity of various meme currencies. Elon Musk, the CEO of Tesla and SpaceX, is probably the best-known example, and there’s even a Dogecoin variant called Floki Inu, named after Musk’s dog.
Some meme coins are just made for mocking. Mongoose Coin was founded in December 2021 after a congressman coined the name during a discussion about digital currencies.
Meme coins often have an infinite supply. Unlike Bitcoin, which is designed to have a limited number of units to mine, meme coins have billions of units in circulation.
How safe is it to invest in meme coins?
Due to its reliance on the community spirit and random outside influences such as celebrity tweets, the pricing of meme coins is extremely volatile. While the value of a meme coin can skyrocket, as with Dogecoin, it can also plummet quickly if and when the community loses interest.
So meme coins may not be the most reliable investment. Due to their sheer range and volatility, they are inherently riskier investments.
What does the future hold for meme coins?
Meme coins shot up in 2021, but they’ve largely declined in value since then. However, this does not mean that their fate is decided. But they may never reach the same level of widespread adoption as more cryptocurrencies like Bitcoin and Ethereum.