I’m sure you’ve all heard of this DOGE. What’s so special about it, and why is the whole world talking about it? We will find out…
So, what is Dogecoin?
Dogecoin (DOGE) is a peer-to-peer, open-source cryptocurrency. It is considered an altcoin and an almost sarcastic meme coin. Launched in December 2013, Dogecoin has the image of a Shiba Inu dog as its logo. While it was created seemingly as a joke, Dogecoin’s blockchain still has merit. Its underlying technology is derived from Litecoin. Notable features of Dogecoin, which uses a scrypt algorithm, are its low price and unlimited supply.
The History of this meme coin
It started as a joke. Bitcoin, the original cryptocurrency, was an impressive technical innovation that let anyone exchange digital money at low fees and without the need to ask for anyone’s permission. But Bitcoin was also open source, meaning everyone could copy it, and at one point, everyone did, with clones such as Litecoin and Peercoin popping up everywhere.
Dogecoin is the funny answer to this trend.
Created in December 2013 by software engineers Billy Markus and Jackson Palmer, it’s a copy of Bitcoin (more precisely, Litecoin, which itself is fairly similar to Bitcoin) that features the Shiba Inu dog and is almost always referred to in silly language that abounds with dog- and moon-related metaphors.
Almost from the get-go, Dogecoin garnered a devoted following. It attracted people who liked the idea of crypto but wanted to make fun of Bitcoin. It attracted people who liked dogs. It attracted anyone who wasn’t particularly serious about crypto, but still wanted to participate.
Not everyone gets it. Even its co-founder Palmer washed his hands off it — in 2018, he said that the skyrocketing price of Dogecoin was a signal that the crypto market was overheated. “I think it says a lot about the state of the cryptocurrency space in general that a currency with a dog on it which hasn’t released a software update in over 2 years has a $1B+ market cap,” he said in January 2018 — and sure enough, the crypto market suffered a horrible crash a few days later.
But Dogecoin persevered. Partly, most likely, due to the fact that it doesn’t require a lot of active management and partly due to the crypto space recovering tremendously in 2020, Dogecoin has become bigger than it ever was.
Why Is Elon Musk Invested in Dogecoin?
Elon Musk personally owns Dogecoin. He reiterated his support of the cryptocurrency in July 2022. He noted that Tesla now accepts Dogecoin as payment, and SpaceX will do the same in the near-future. Musk said that he is supporting the many people who are not wealthy that have encouraged him to buy and support cryptocurrency.
Another time, he wrote, “Who let the Doge out,” and “No highs, no lows, only Doge.” Perhaps in an effort to be helpful, he also tweeted what he described as an instructional video titled “D is for Dogecoin.” Mr. Musk renewed his interest in the cryptocurrency in April, tweeting, “Doge Barking at the Moon.” And after SNL aired, he tweeted: “SpaceX launching satellite Doge-1 to the moon next year,” adding “Mission paid for in Doge,” as well as “1st crypto in space.”
His cryptic comments have prompted the cryptocurrency’s popularity to skyrocket, with musicians, including rappers Snoop Dogg and Soulja Boy, as well as Kiss frontman Gene Simmons, sharing memes and tweets with their followers.
Is Dogecoin bad for cryptocurrencies?
The dogecoin phenomenon has drawn numerous criticisms of the cryptocurrency ecosystem. Many have seen this as the perfect excuse to attack bitcoin and other cryptocurrencies, accusing them of being a bubble and warning of the danger suffered by all the people who have invested in DOGE.
While a speculative bubble is dangerous for less savvy investors, it is also a way to draw attention to the crypto world. It is evident that in the crypto sector, there are projects of a disparate nature. Some, like Ethereum or bitcoin with a solid proposition and a consolidated product-market-fit, and others are a joke like Dogecoin.
However, Dogecoin has become one of the top four cryptocurrencies by market value, according to Coinmarketcap.com. That puts it behind bitcoin, Ethereum, and Binance Coin — in addition, it brought many people into the crypto space and helped with adoption.
Dogecoin is among the most speculative cryptocurrencies out there. Sure, it’s making headlines right now, but headlines have led to outperformance in recent years. However, investors need to be aware of the risks. Buying a small stake in DOGE along with other cryptocurrencies in a well-diversified portfolio is great.
Going all in, however, is not advised. That said, this token does have upside potential. For those able to handle the volatility, this cryptocurrency may be worth a look.
Thank you for reading! Please tell us what do you think about DogeCoin and why do you think this memecoin is so popular? Do you own Dogecoin?
P.S
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