While following the latest cryptocurrency trends, you might wonder what is Dogecoin. Strangely, people are investing large sums into coins with dogs on them. More people are joining the Dogecoin community, even prominent celebrities. Should you believe the hype and finally invest in Dogecoin?
Before we answer, we’ll narrate the humble beginnings of the peculiar virtual currency. Then, we’ll show the basics of how Dogecoin works. Next, we’ll explain the buzz surrounding this cryptocurrency. Finally, we’ll discuss how to select the best among the numerous cryptos available.
Some may chuckle or scoff at this cryptocurrency, but people were generally dismissive about cryptos back then. Now, people are rushing to ride the crypto wave. Understanding Dogecoin could help you invest in a potentially lucrative asset. Even better, you may detect ones better than the mainstream.
How Dogecoin began
Let’s begin by discussing what is Dogecoin. Believe it or not, it originated from an unlikely source: the Doge internet meme.
The Doge meme was mainly a picture of a cute Shiba Inu dog. The lovely canine had misspelled funny statements in Comic sans font, such as “much popular” and “much doge.”
Meanwhile, cryptocurrencies were starting to gain some attention. However, Jackson Palmer and Billy Markus thought people were taking the hype too seriously.
In 2013, Billy Markus from Portland, Oregon, and Jackson Palmer from Sydney, Australia, took matters into their hands. They founded the silly canine currency we know today.
Eventually, social media developed what is Dogecoin in the public’s eye. Many joined for the silly concept. Soon, more people stayed to ride Dogecoin’s market value to the moon.
Ironically, serious investors are bullish over the joke meme coins nowadays. After all, they might be laughing all the way to the bank once the hype soars!
How does Dogecoin work?
Explaining what is Dogecoin is similar to how we define other cryptocurrencies. It uses identical proof of work and blockchain technology, just like the famous Bitcoin.
The Dogecoin website defines it as an “open-source, peer-to-peer digital currency…”. At the time of writing, data from CoinMarketCap shows its market cap at around $7.5 billion.
Like any other virtual currency, people may store it in Dogecoin wallets. They could check crypto exchange platforms like Binance to purchase Dogecoins.
Tech-savvy individuals may invest as miners for Dogecoin too. Similar to Bitcoin, Dogecoin’s mined by validating transactions using this virtual currency.
Unlimited supply is a crucial factor defining what is Dogecoin. There are only 21 million Bitcoins, but there are currently 114 billion of the Shibe cryptos.
However, the limitless supply drastically lowers its value. Nevertheless, it makes doggie coins the ideal choice for giving tips and donations.
For instance, it helped a Jamaican bobsled team travel to the Winter Olympics. Online donors pooled $30,000 in Dogecoin to pay for their trip to Sochi.
Among all cryptos, why Dogecoin?
What is Dogecoin’s edge above all the other cryptos? After all, Bitcoin seems to be the popular and safe option. There are also other altcoins like Litecoin, Luckycoin, and Kraken.
Well, Tesla CEO Elon Musk’s tweets about Dogecoin prompted investors to dive right in. As a result, it’s price skyrocketed this year.
Other celebrities joined in the craze, too, such as former Kiss frontman Gene Simmons. He proclaimed himself as the “God of Dogecoin,” claiming he bought doggie cryptos worth “six figures.”
What’s more, Snoop Dogg also declared his support on the internet. Rapper Calvin Broadus even posted a mock “Snoop Doge” album cover on Twitter!
A Reddit group called SatoshiStreetBets also propped up what is Dogecoin today. Similar to the WallStreetBets group behind the Gamestop-Robinhood debacle, they aim to support cryptos.
Invest wisely using research
After hearing all the hype, should you buy into it? Should you heed the social media advice and YOLO (you only live once) your savings away?
Lots of good things to come:
— The Doge Whisperer (@TDogewhisperer) March 8, 2021
Before you do, you must thoroughly understand what is Dogecoin. Beyond the buzz, it is a cryptocurrency among thousands. You should understand how cryptos work first.
Specifically, learn how Dogecoin stock price moves. Keep in mind that cryptocurrencies are a highly speculative market. Dogecoin price and other cryptos’ could change with a few tweets!
What’s more, find the establishments that are currently accepting Dogecoin for payment. For instance, people could buy food, airplane tickets, and video games using Bitcoin.
Thankfully, the internet provides numerous sources everyone can access for free. There’s a ton of online information, courses, and videos all about cryptocurrency.
More people have been asking what is Dogecoin. Some wonder how right-minded people are somehow investing in this absurd meme cash.
Before you dismiss Dogecoin, remember that ancient peoples once used rocks and feathers as money. Before that, some cultures bartered for goods like produce and livestock.
Money is a tool that facilitates the exchange of goods and services. We decide what that tool is, whether it’s paper with presidents’ faces or coins with a doggie on them.
That’s a huge reason why money’s value fluctuates. As we’ve mentioned, Elon Musk could send a crypto’s prices to the moon with a single tweet.
Fiat currencies aren’t entirely secure either. The Federal Reserve’s constant money printing might severely diminish the US Dollar’s value, especially during the pandemic.
It’s best to research your info for investments. What is Dogecoin? Is it a funny investment fad, or is it the future of finance? Learn more and decide for yourself.
Regardless, good spending habits could help you manage your money and investments. Check the internet for more personal finance tips, so you have a failsafe in case Dogecoin crashes!