Your Guide to Dogecoin Cryptocurrency


 

An Overview Of Dogecoin

Started by software engineers Billy Markus and Jackson Palmer, Dogecoin is a cryptocurrency that was initially created as a joke which featured the face of a Shiba Inu, a Japanese dog breed from the ‘doge’ meme, on the currency’s logo. It was started on December 6, 2013, and it has created its own community over the years.

It is considered as an altcoin and its a peer-to-peer, open source cryptocurrency. Dogecoin now has a loyal community of those members and supporters who use it as a tipping currency on social media platforms. 

Its technology is based on Litecoin and what attracts people towards Dogecoin is its low price and unlimited supply.

History of Dogecoin

Dogecoin was initially started as a joke and the developers wanted to create a currency that would reach a broader demographic than Bitcoin. What is surprising is that within the first thirty days of its creation, there were more than a million visitors to Dogecoin.com.

A few days after its creation, Dogecoin’s value increased by 300% in 72 hours by December 19th, 2013. In an unfortunate incident, the online cryptocurrency wallet platform, Dogewallet was hacked and it was the first major theft of Dogecoin. 

As a result of this, millions of coins were stolen which were later recovered through the Dogecoin community’s initiative ‘SaveDogemas’, to help those whose coins had been stolen.

In the month of January 2021, the value of Dogecoin went upto 800% in 24 hours which was mostly credited to the attention received from Reddit users encouraged by Elon Musk. 

In May 2021, Space X announced a space mission that would be completely funded by Dogecoin. This would make it the first space mission to be funded by a cryptocurrency.

Fundraising

Along with this, the dogecoin community has also donated to charitable causes and organised fundraisers. In January 19, 2014, the dogecoin community organised a fundraiser to raise $50,000 for the Jamaican Bobsled team, who had qualified for the Sochi Winter Olympics but couldn’t afford to go there.

The Dogecoin Community also raised around $67.8 million on March 24, 2014, in order to fund the NASCAR Sprint Cup Series driver, Josh Wise. moreover, the community also raised funds to build a well in the Tana river basin in Kenya in collaboration with the Charity: Water.

Criticisms about Dogecoin

As mentioned before, the start of this cryptocurrency was inspired by a meme and therefore financial experts and mainstream media has not taken it that seriously over the years. Moreover, it has had a controversial history involving scams. Many have described it as pyramid scheme as well.

This means that those who purchased Dogecoin in its initial phase have the financial incentive to pull more people into the scheme and benefit from them financially. Many top analysts have termed it as a risky pump-and-dump investment.

Benefits of Dogecoin

Although the currency is volatile in nature and unpredictable, this uncertainty can be beneficial for day-traders of cryptocurrency who enter and exit a trade in a single day and earn profit from the volatility of the market. 

Another thing to keep in mind is that even though the currency started as a joke, it was ranked as the fourth-largest cryptocurrency in the world in May 2021.

Role of Elon Musk

Elon Musk frequently expresses his views on Dogecoin through his twitter handle. It is important to note here that the value of the currency fluctuates soon after he tweets something in relation to it. 

Many people have blamed him for manipulating the market through this, but since Dogecoin is not regulated by any authority, his actions aren’t illegal.

CNN Business reported that after Elon Musk’s first tweet about Dogecoin on 20th December 2020, which said “One word: Doge”, the value of the currency went up by around 20%. 

The value of Dogecoin increased even more to around 40%, all thanks to Elon Musk, who tweeted a series of tweets encouraging the currency and calling it “the people’s crypto”.

Written By - Himanshi Nebhnani

Post a Comment

0 Comments