What is Dogecoin? If you are dealing with digital currencies, you must have heard of Dogecoin and you may be wondering what exactly is Dogecoin and where does it come from? In this article, we will introduce the funniest digital currency that started as a joke.
What is Dogecoin digital currency and how was it created?
Dogecoin is a digital currency like Bitcoin or Ethereum, but it is very different from any of these popular coins. Dogecoin was originally created as a joke with fans of digital currencies and took its name from a popular meme (video joke on the Internet).
Despite its unusual start story, Dogecoin has gained a lot of popularity in 2021 and is the sixth-largest digital currency in terms of market value at the time of writing.
Jackson Palmer, who was working for Adobe at the time, co-founded Dogecoin with Billy Marcus in late 2013. Palmer used a popular term at the time to deliberately spell the word Doge to describe a dog of the Shiba Inu breed, to symbolize the digital currency.
“Doge was originally created to make fun of Bitcoin,” said Pat White, CEO of Bitwave. In the early days, a community of enthusiasts launched ads to promote dogecoin. For example, the fans raised funds to send Jamaica’s national sled team to the 2014 Olympics and sponsored a NASCAR driver.
By early 2021, dogecoin was gaining traction on Reddit’s WallStreetBets section of the social network Reddit, with fans promising to push the price of dogecoin “to the moon.”
Dogecoin is no longer a joker today; In 2021, its price has grown by an incredible 5,000 percent and its market value is currently $ 30.37 billion. Elon mask called dogecoin “the digital currency of the people” and promised to plant a physical dogecoin token on the moon to make the wish of the fans of this funny coin come true.
Dogecoin peak price
Dogecoin is trading at $ 0.2331 at the time of writing. With a circulation of about 130.32 coins, its market value is $ 30.37 billion. The Dogecoin peaked on May 8, 2021, when the digital currency traded at $ 0.713158. Dogecoin had a market capitalization of $ 94.7 billion on the same day. Dodge Quinn’s price fell 68 percent from its peak in May.
What is the problem with Dogecoin inflation?
The Dogecoin may be used for payment and purchases, but it has little use as a reserve. This is largely because there is no limit to the number of Dogecoins created by mining, which means that this digital currency is highly inflationary in design. This blockchain rewards miners by creating millions of new coins on a daily basis, which makes the Dogecoin price increase unstable over time.
Since there is no limit to the number of Dogecoin and millions of new coins are released in the market every day, there is very little incentive to keep this asset for the long term. Unlike this funny coin, bitcoin is a much better investment due to its 21 million coin limit.
Should we buy a Dogecoin?
Those who bought Dogecoin in early 2021 or earlier made huge profits, but it should be noted that investing in any digital currency carries risks, and Dogecoin is not only an exception but maybe the rest. Digital currencies are also riskier.
It does not hurt to buy several coins to get acquainted with this system and enter the Dogecoin area, but it is not recommended at all to spend a lot of hard-earned money in a digital currency that started as a joke and is used as some other currencies. No, invest.
What do you think of Dogecoin? Have you bought or plan to buy a Dogecoin yet? Share your comments and suggestions with us.