According to CNN, Dogecoin is the hottest cryptocurrency on the earth right now with the most unusual trends. The total value of dogecoins that is circulating in the market is almost $67 billion, which is shocking for a digital currency that started as a meme.
Meme coin Bitcoin Dogecoin
Image Credit – medium.com
Dogecoin is the fifth most valuable cryptocurrency that has increased by more than 6,000 percent this year. The price of a dogecoin has doubled once more. CEO Tesla, Elon Musk tweeted about the coin on Friday. In April, the demand for Dogecoin was so high that it almost broke the cryptocurrency trading system.
What is dogecoin?
Dogecoin is a digital currency that you can buy and sell like an investment and spend like money.
While each cryptocurrency has a unique algorithm, Dogecoin shares some characteristics with other similar coins — for example, its code is based on the script of the litecoin. But, there still tends to be a few major differences.
Unlike bitcoin, which has slowed down its mining and has a limited number of 21 million coins in circulation, dogecoin has pocketed 129 billion coins and will continue to mine more new blocks of coins each year. That’s why a dogecoin is currently worth about three dimes and a bitcoin is currently worth about $63,000.
Dogecoin isn’t widely used in the real world, despite the fact that cryptos are becoming more widely accepted as a means of buying products. Dogecoin has a couple of niche markets where it is easily accepted, such as paying online artists.
The odd-one-out coin’s key difference maker is its loyal online community. This is something very strange but it is what makes it so cool. A group on Reddit raised money for social causes in dogecoin and in 2014 it successfully crowdfunded a sponsorship to get Nascar driver Josh Wise to advertise dogecoin on his ride.
Usman Chohan, an economist at the New South Wales Business School, writes in his paper,
“Dogecoin is not so much an alternative deflationary numismatic instrument as it is an inflationary leisured exploration of community-building around a crypto asset,”
Is Dogecoin The Next Big Thing?
Dogecoin is a cryptocurrency, or digital currency, that allows peer-to-peer transactions through a decentralised network and follows the same pattern as bitcoin does. One of the main differences is that bitcoin is the first blockchain proof-of-concept. Bitcoin is a game-changer and an amazing technology that has the ability to change the way money works in the twenty-first century.
On the other hand, Dogecoin is a currency that is also called Doggy Coin and has a dog picture on it.
Adrian Lee, a finance lecturer at the University of Technology in Sydney says,
“It is a puzzle to me why Dogecoin is so highly valued,”
Dogecoin was once valued at $2 billion. This is just not making any sense.
“Dogecoin is an easily replicable coin,” Lee said. ” He’s uncertain on how it differentiates itself from Bitcoin. He believes it has something to do with getting started early and the dog.
You must have seen the Doge meme while surfing on the internet in the last decade.
When the meme was trending on top, an Australian marketer named Palmer who belonged to the world’s largest tech firms, made a joke about the two most popular topics of the internet: Crypto and Doge It was a joke aimed at the strange world of cryptocurrency and its many derivatives.
Palmer tweeted, “Investing in Dogecoin, pretty sure it’s the next big thing.”
The tweet received some unbelievable attention.
Palmer wanted to keep the joke going for laughs. He purchased the domain Dogecoin.com and posted a picture of Shibe on a coin.
He left a message on the web saying, “Get in touch if you want to make Dogecoin a reality.”
The Father of Dogecoin And The Real Story Behind Doge
Elon Musk and the traders of crypto currency refer to Musk as the “Dogefather”, but here’s the real story behind it…
Dogecoin was shared as a meme by software engineers on December 6, 2013.
Billy Markus, an IBM programmer from Portland, Oregon, wanted to set his crypto apart from bitcoin, which was full of mysteries with an unknown founder and drew only a small, specialised community of miners at the time. According to Chohan, Markus wanted his cryptocurrency to be open to the general public.
Markus wanted to turn his strange dream into a reality and came across Jackson Palmer, an Adobe employee (ADBE). Palmer bought the domain dogecoin.com with a lot of help from the Doge meme that was circulating at the time.
Why Has it Become so Famous All of A Sudden?
Dogecoin is no longer a laughingstock. Its popularity has skyrocketed this year, thanks in part to the widespread acceptance of bitcoin and other cryptocurrencies.
However, Elon Musk is the most vocal and visible supporter of dogecoin. One of his strange tweets to his 50 million followers has the potential to send cryptocurrency prices soaring. That’s what happened in April, when Musk tweeted “Doge Barking at the Moon” and posted a picture of a painting of a dog barking at the moon by Spanish artist Joan Miró.
Dogecoin has been backed by a cult status on the web message board Reddit, where a famous group of loyal traders decided this year to skyrocket its price “to the moon.” This has happened a couple of times before and again today that the value of Doge doubled within a day and the coin soared over 600% in the wake of that push.
Whether it’s a good investment or not is always up for debate. Dogecoin, like the more actively traded and commonly accepted bitcoin, is subject to extreme uncertainty, so it could collapse at any time. However, it has grown at an incredible rate this year.
Markus, who sold all of his dogecoin when he was laid off in 2015, isn’t benefiting from the coin’s exponential rise. He used that money to purchase a Honda Civic.