Dogecoin is a cryptocurrency. Like Bitcoin and the other cryptocurrencies, you can buy or sell or hodl (a crypto way of saying “not selling”) your coin. In a way, Dogecoin does not require a lot of thinking; but as the trading game warrants- it is advisable to understand the coin, market and timing before investing or trading. Knowing this will allow you make informed decisions about the coin to hodl or buy or sell; and when to take either of these actions. Hodling, selling or buying cryptocurrencies are the swings of actions within the game…until you become rich enough to retire for the rest of your life, lol.
Alright, so Dogecoin is no different than the other crypto coins. However, its genesis and the future speculations makes the difference. Fastly gathering more momentum, Dogecoin is tremendously expanding its market base- and there are certain information you should know about Dogecoin before investing in it.
Seat back and read on!
Origin of Dogecoin
The saga around Dogecoin started off as a joke in 2013 by Jackson Palmer. Jakson, like a large number of people, was a skeptic-analyst of Bitcoin. With the intent to satirize the rising attention around Bitcoin, Jackson announced his cryptocurrency venture jokingly iconizing the venture with a Shiba Inu (Japanese) Dog. Interest was drawn from a lot of people. Ranging from crypto fans who were jesters of Bitcoin, people who loved dogs, to those who were interested in- but not serious about- crypto. Once Palmer noticed the hype and positive reactions from people- he bought the domain name. Immediately Jackson bought the domain name for dogecoin, Billy Markus- an IBM software Engineer who had been encountering some challenges with creating his own digital currency- reached out to collaborate with Jackson in creating the software behind the actual dogecoin. And yeah Dogecoin started off with memes and sarcasms; so it’s safe to say that it’s a meme coin.
Tech Sneak-Peak into Dogecoin
Dogecoin uses the same Proof-of-Work (PoW) coin technology as Litecoin (where Litecoin is an edited proof-of-work off Bitcoin).
Dogecoin is an open-source currency. Open-source currencies are currencies whose codes are; collaboratively produced, shared freely, published transparently, and developed to be a community good rather than the property or business of a single company or person. The downside (fortunately, this was one of the origins of Dogecoin) is that the codes can be cloned or plagiarized by other developers to create altcoin (Altcoins are all crypto coins other than Bitcoin).
Dogecoin is an inflationary coin. Unlike Bitcoin which is deflationary because there is a ceiling to the number of coins that can be created, Dogecoin has unlimited mining supply. This was one of the attributes that earned it some popularity. Much more, the coin gained more popularity due to its simplified and user-friendly script technology.
Somewhat immediately after its launch, Dogecoin was used for smart contract (Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met).
You can buy and sell Dogecoin on digital currency exchanges. This is done by opting to store your Dogecoin on an exchange or in a Dogecoin wallet.
Dogecoin isn’t as popular across all crypto-exchange platforms as Bitcoin. However, Binance has Dogecoin as one of the coin-offerings. Each platform has its procedure or process in acquiring any of the currency- which will be applicable to all listed currency on their platform. Alternatively, you may buy directly from The Dogecoin Platform– and you get a wallet to store your coin after sign up and puchase.
Elon Musk: The DogeFather
Elon Musk definitely needs no introduction. Arguably, the persona of Elon on Twitter has been one of sarcasm and pure vibes. Most people are of the opinion that the sarcasms characterized by memes for dogecoin must have been what piqued his interest.
Elon shared a couple of tweets that significantly skyrocketed the value and market base of dogecoin. His undying support for dogecoin expressed through his tweets has been the major support and backbone of the growing dogecoin community. His tweet about the dormant cryptocurrency in late December 2020 “One word: Doge” was the whole tweet. This tweet was accompanied by a 40% price jump in the next 24 hours.
Overtime, Musk has shown his un-rivalry support for dogecoin by incorporating Dogecoin as one of the acceptable medium of payment for all Tesla merchandise. and securing the coins for his son, Lil X.
What does the future of Dogecoin looks like and should you invest in the buzzing coin?
The future of dogecoin seems bright. Considering the fanbase of its support; Elon Musk, a couple of public figures and institutions.
There are a few numbers. The price of Dogecoin at the time of writing was $0.18. Last month the price dangled between $0.16 and $0.21, making this a shaky and somewhat volatile investment. There are currently more than more than 129 billion coins circulating the supply of the market cap. You’ll often see proponents saying that DOGE must reach $1 at some point. If that happens the market cap will be roughly $126 billion. Everything is possible, if the joke graduates to real belief in the coin; and doge gains more acceptance as a medium of exchange.
Going by fast-paced and emerging technology with web 3.0; Dogecoin, like the other prominent coins, are already positioned for long-term relevance and value as it is one of the major elements surrounding web 3.0 using a decentralized medium of payment. We are gradually experiencing the web 3.0 where Dogecoin is being used traded and used to tip for content on Twitter and Reddit. Dogecoin definitely has a large fanbase.
So, there’s a great advantage and benefit of understanding the system and probably stocking in on some coins (with some spare cash) – whenever the price is low.
In support to investing in dogecoin, news have it that Tesla is accepting Dogecoin in exchange for its merchandise.
In summary, the nudge will be that if you intend trading professional, you might make money trading DOGECOIN. But if you’re not, and preferably would like to hodl, please keep up with the news, and invest with cash that wouldn’t hurt too much.
The future of digital currency has never been brighter!