It was 2013, crypto was not practical, even Bitcoin did not hold any good value at the time, Billy Markus and Jackson Palmer two software engineers, created this cryptocurrency as a joke while making fun of wild speculations being spread about crypto. Dogecoin features `Shiba Inu` dog’s face from the “Doge” meme. Since December 6, 2013, when dogecoin was introduced, it has now become a potential crypto with a market cap of more than 69 billion dollars (as of 14 May 2021).
At the end of 2020 Dogecoin was valued at $0.0045 approx. It was about $0.05-$0.07 till start of April 2021. And now, just within a month, it has been unprecedented growth and now holds a value of $0.5 after sparkling of hundreds of folds rally.
Bitcoin vs Dogecoin:
The thing that everyone needs to know is that any crypto coin is a result of rewards of mining or verifying transactions. (This does not apply to the each cryptocurrency, there can be other ways too). But the catch is that number of Bitcoins possible are capped at 21 Millions, but that is not the case with Dogecoin, there can be an unlimited number of Dogecoins which raises questions over the long-terms value of this crypto. On the other hand, Bitcoin consumes lots of power, while dogecoin transactions consume less than 1% of what it takes for a Bitcoin transaction.
Elon Musk Factor & Social Media:
Tesla & SpaceX owner, Elon Musk has been playing a big factor in this doge rally, he has supported the cryptocurrencies, started to accept Bitcoin (now abandoned again stating carbon emission factor) and planning to accept Dogecoin too. After a tweet in which Elon was asking for a feedback on whether he should accept Dogecoin as a payment method in Tesla.
Most of the Dogecoin’s existence remains due to the social media frenzy of this meme based currency. There is like a war over twitter when it comes to Doge.
Fear of Bitcoin’s future and people shifting to Dogecoin after this announcement:
Views to be given consideration:
As Elon Musk himself said at the SNL Event, when asked if it’s a hustle, he responded : “Yes, it’s a hustle” so one should invest wisely. In another tweet, he said “Cryptocurrency is promising, but please invest with caution!”. However, he also said he is working with developers to improve its efficiency, which has once given a boost to the dropping graph of doge.
While reading an Article, I read this view from an expert:
“Dogecoin remains a lesson in greater fool theory,” said David Kimberley, analyst at investing app Freetrade, which posits that buying overpriced assets can be profitable, so long as there is a “greater fool” to buy them at ever higher prices.
“It’s being pumped by people that want to get rich quick (and Elon Musk),” he said.
My take :
It would be worth to wait and let it stabilize, investing in this sudden can be just a hype and if this balloon is busted, your hard earned money can be at a great risk! So, invest wisely!
I will be posting more articles, this is the only one at the moment on my blog, I wrote this in the meantime using authentic resources.
An Ethical Hacker, Coding Enthusiast, Software Developer.
Love to discuss Ideas. Open for collabs.
Quite clear and sorted info…keep it up?
Thank you, Reeteshwari!
Crisp and clear info.. the Greater Fool theory is definitely at play..however the big players are adamant in creating a demand and frenzy which is going to be a big factor in determining the future of the doge crypto!
Pravesh, you can give more info on your next blogs on working behind these cryptocurrencies such as Blockchain for Bitcoins.
Thank you, Shreyash! I will surely write about the working process behind cryptocurrencies and the blockchain. Feel free to suggest any topics that you would love to read.