Dogecoin is one of the hottest cryptocurrency coins in the market right now that has seen meteoric amounts of growth in these past few months of 2021 even within the list of unicorn coins that show massive growth, Dogecoin is an anomaly within them as it grows more than 10,000% just within 5 months.
With talks of Dogecoin plastered all across the internet, the question arises, as Saturday Night Live asked, “But what is Dogecoin?”. Our article is going to explore the history of this so-called meme coin, its purpose, the community around it, and the other technical issues with Dogecoin.
What is Dogecoin?
Dogecoin is pretty much a cryptocurrency like Bitcoin and Ethereum that runs on the Blockchain there are a few key differences between Doge and other popular crypto coins there is a distributed ledger available to every holder of Dogecoin.
Miners solve mathematical tasks and equations in order to record new transactions of Dogecoin on the Blockchain, and they receive a certain amount of Dogecoins for it.
The main difference between Dogecoin and Bitcoin is that Dogecoin does not have a fixed market cap This means that theoretically an infinite amount of Dogecoin can be created. The result of this uncapped coin makes it inherently inflationary.
Thus, because of this a lot of people believe that Dogecoin is a poor store of value and currency because of the inflationary nature making individual Dogecoins lose their value over time if more coins can be made whenever wanted.
Dogecoin mining is also substantially easier than Bitcoin mining which is one of the most popular businesses related to cryptocurrency. What takes 10 minutes in Bitcoin, can be done in under a minute with Dogecoin. This makes Dogecoin more efficient for transactions in a way.
History of Dogecoin:
Way back in 2013, two developers, Billy Marcus and Jackson Palmer founded Dogecoin as a joke coin. The main purpose of Dogecoin was to make fun of Bitcoin. The mascot of Dogecoin is the ‘doge’ which is a deliberate misspelling of a dog.
Doge refers to the name of a particular dog. In the internet meme culture, a picture of a golden Shiba Inu breed dog sitting down became very popular and the dog was named Doge by the internet community.
Dogecoin for several years continued to exist as a joke. Most publicity and promotions are done very humorous and light-hearted in nature, only wanting to bring attention to the satirical nature of the coin and not necessarily promote its value.
And then, in late 2020, the same group that made the GameStop magic happen, r/WallStreetBets struck Dogecoin. The entire stock of Reddit investors suddenly felt attached to the idea of a funny and non-serious coin that had the potential to be so much more.
With this love in mind, WallStreetBets decided to boost the value of Dogecoin and take it “To the moon”.
The Dogecoin Community:
The community of Dogecoin is a very interesting one. The current goal right now is to take Dogecoin to the value of $1. Why the community wants, in the long run, is to prove that Dogecoin is a legitimate currency for transactions for say buying a phone online, just like Bitcoin or actual money like US Dollars.
The Dogecoin Community has also coined a new term of holding onto the Dogecoins and not selling them for short-term gains, as it makes the coin more volatile. ‘Hodl’ being the typo for hold is a massive message that you find echoing in Dogecoin forums and groups, urging the owners to resist the temptation of selling their coins so that it keeps on going to the moon.
Dogecoin is also dubbed as the people’s coin. The current view of Bitcoin and Ethereum are ones that are too massive for a small-time investor to tap into. There is also the belief that control of Bitcoin lies in the hands of a few big owners who bought thousands of coins, and they have the power to crush the coin whenever they’d like.
Dogecoin has been a dream for many people. Suffering the backlash from the Coronavirus pandemic, many people took a gamble and invested some of their savings into it.
But by the end of a few months, suddenly these people found themselves to be owners of thousands of dollars. The earnings they got from Dogecoin allowed them to be financially independent.
Dogecoin and Elon Musk:
Elon Musk, the owner of Tesla, SpaceX, and eBay, is one of the greatest tech entrepreneurs and has somehow become the poster child of the heroic messiah of Dogecoin.
Elon Musk has always been in support of dogecoin, being quite intrigued by the fact that this joke currency became so popular. To describe this, Elon Musk said the famous line “Fate loves irony” shows us how people can be so sensitive to something done as a jest or in light spirits.
In fact, it has come to such a point that any statement Elon Musk makes has the power to influence the prices of all cryptocurrencies, and he just so happens to have a soft spot for Dogecoin.
Often calling Dogecoin better than Bitcoin, and now having promised to send a literal Dogecoin to the moon in one of their SpaceX launches, Elon Musk has boosted Dogecoin’s popularity and value many a time by remaining its biggest endorser.
Even though Dogecoin has had interesting origins it is no joke. Currently sitting at around 50 cents, many speculate that Dogecoin will easily hit the $1 mark within the end of 2021.
Long-term trends also indicate that the coin has the potential to grow as much as $10 or more in the upcoming years. There is greater adoption of Dogecoin too, with more people trading in it and mining it. This is only going to be boosted by the continued celebrity endorsements and publicity Dogecoin keeps on getting. To the moon!