How long will the joke prolong? - Dogecoin's potentialDo you believe that we have a chance to go to the moon? Well, we might! It is all thanks to the proponents of Dogecoin or DOGE. It is a Cryptocurrency that began as a random joke but is one of the top coins today.
We are going to the moon. And that sums up pretty much everything you need to know about Dogecoin. In a way, this statement can be correct. There is nothing much to think about Dogecoin. People who are fans of the coin just buy and hold it; basically, they do not sell it off until there is a considerable change. Until they become rich, that is.
However, the question remains. Is it that simple? Read on to find out more.
Dogecoin’s history
You may never believe it, but it is the truth. This Cryptocurrency was started as a joke. However, Bitcoin, also known as the original Cryptocurrency, was a technical innovation and super-impressive. The whole concept of exchanging digital money at a small fee without the necessity of permission from anyone was mind-boggling on its own.
It is essential to remember that Bitcoin was also open source. Hence, anyone to copy it and create the coins, and many did it too. You could see different clones like Litecoin and Peercoin popping up everywhere. And in the same trend, we have Dogecoin joining the honors.
Billy Markus and Jackson Palmer, two software engineers, created Dogecoin in December 2013. It is similar to Bitcoin but mostly closer to Litecoin, which is just another copy of the former. The coin features the symbol of the Shiba Inu dog and acts as a synonym for dog and moon-related metaphors in every silly manner.
Popularity
Dogecoin enjoyed a punctual following right from day 1. It was usually the ones who loved to make fun of Bitcoins and liked the concept of crypto coins. Then you could see people who loved dogs showing interest in the same. Dogecoin attracted anyone who wanted to participate without the seriousness of the cryptocurrency.
No analyst understands the pattern. The Co-founder Palmer also took his hands away in 2018. He concluded that the skyrocketing price of Dogecoin simply indicated that the market was overheated.
Palmer said, "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 two years has a $1B+ market cap," in January 2018. Technically, the market crashed just a few days after that.
However, Dogecoin is still standing to this day. It is primarily because; the currency does not require any exceptional or active management. Additionally, Dogecoin is becoming more significant than it originally was due to the remarkable recovery of crypto space in 2020.
Dogecoin’s technicality
Do you think Dogecoin is technically sound? Not in the true sense. In a sense, it is alright because this coin is just a copy of Litecoin that is technically appropriate. Dogecoin is an online network safe and cryptographic that allows users to send a DOGE to another user in a permissionless manner.
It works okay, but it is not as safe and decentralized as Bitcoin. Right from the start, Dogecoin was not a very clever move. Of course, there are many differences, and it enjoys a shorter block time compared to Litecoin. However, the supply is not limited like Bitcoin’s. We have close to 129 billion DOGE, and a lot more are minted.
The most significant difference is that Bitcoin and Litecoin are managed better with regularly updating to handle bugs and limitations. Occasionally, Dogecoin gets updated, but there are times when it takes years for a new version. This coin is nothing but Bitcoin’s silly cousin who doesn’t take anything seriously. It doesn’t worry about the future at all. The coin just counts clouds when you are busy cleaning the house. Dogecoin doesn’t care nor worry.
Elon Musk’s muse
Elon Musk has a reputation for liking silly random stuff, and since Dogecoin is pretty silly. And hence, please do connect the dots. The Tesla and SpaceX CEO showcases his admiration for Dogecoin on various platforms, especially Twitter. His tweets pushed the Dogecoin’s value to greater heights, and on one particular occasion, the price raised more than 100 percent just after his post.
Elon Musk explained why he likes this coin in a Clubhouse Interview. He said, “Arguably the most entertaining outcome, the most ironic outcome would be that Dogecoin becomes the currency of Earth of the future.”
In actual business, Musk is a much greater fan of Bitcoin. Quite recently, Tesla even bought close to $1.5 billion worth of the currency. While Twitter and memes are on one side, reality and the balance sheet of Tesla are pretty something else, at least for now.
It is essential to note that Elon Musk is not the only big-shot advertising Doge. We have other biggies like Rapper Snoop Dog, and Kiss singer Gene Simmons is also on board.
So should you invest in Dogecoin?
Dogecoin isn’t very available like Bitcoin on crypto markets and exchanges. Coinbase and Gemini do not even have an option for purchasing Doge. However, other major exchanges like Binance offer their support for Dogecoin purchases.
It is similar to owning any other Cryptocurrency when you buy a DogeCoin on exchange. You can do two things: either you can keep the coins on the exchange or put them into your wallet software. Dogecoin.com is an official wallet from the project’s website.
Do you think Dogecoin will hit $1?
It can be very tempting to invest in the currency as the price is soaring. But it is wise to stop for a moment before taking the plunge. Although Dogecoin has a big fanbase and the support of the world’s wealthiest people, it is essential to remember that the project isn’t exciting technically. It does not come close to other top cryptocurrencies like Bitcoin and Ethereum.
It is a company’s stock that produces almost nothing and holds some sofas in an empty office. However, it has a super cool logo with a dog face, and people are attracted to it for some reason. Therefore, the stock price can go up, yes, but it can also go very down, even to zero.
At one point, the price of the DOGE is at $0.26, but around a year ago, it was just $0.002, with a 13,000 percentage of the price increase. Approximately 129 billion coins are circulating with a market value of close to 34.5 billion dollars. The influencers will say that the deal will go up to $1 at some point. And then, the market cap will increase to $126 billion. Anything is possible, but how far can the joke travel?
Final thoughts
It all simply comes down to this. In case you are a professional or a seasoned trader, then you know what you are doing. So it might be a good chance to trade with DOGE. However, if you are not, then it is a risk, and you are simply gambling. It is not advisable to gamble with any money that you cannot afford to lose.
