Here you will get all the information about what is dogecoin, where did it originate, and why it is booming right now in 2021?
What is Dogecoin?
If you are wondering what is Dogecoin? So, Dogecoin is basically a meme-inspired cryptocurrency that was no more than a satire topic till this year when it gained immense popularity from mainstream social media. It was developed by two software engineers Billy Markus and Jackson Palmer in 2013 with the purpose to serve as an alternative to the then famous digital token bitcoin. The founders developed it as a faster and more interactive payment method. Founders took the idea of the digital asset from the meme of a dog breed from japan called Shiba Inu also known by its internet name ”Doge” which went viral in the early 2010s. The crypto’s market cap stands at a whopping $39,962,341,743.24 as of 22 April 2021.
How does it work?
So its working is similar to some other big crypto giants like Bitcoin and Ethereum. The building block here also remains the blockchain. A blockchain is a peer-to-peer network of the decentralized and distributed registry that can be verified by anyone using different parties. When a transaction is done, it is registered on a “block.” When a block’s memory is full, it is added to the end of the blockchain, in successive order. Thereafter it is a piece of the permanent ledger of transaction of the blockchain. For instance, Bitcoin works on a blockchain that registers all the transaction details including transaction data, time of the transaction, amount of transaction, etc. Dogecoin uses blockchain cryptography to secure all its transaction. For this miners have to solve a complex mathematical equation as proof that the transaction was made and for which they can claim a small piece of transaction for themself too.
Why it exploded?
So there are multiple reasons because of which the digital asset exploded in popularity out of nowhere. The first reason being the same factor that made Bitcoin and Ethereum touch their all-time peak which is the public listing of Coinbase, a very popular crypto trading platform based in CA, USA. The market cap of Coinbase reached 100 billion Us dollars after its initial listing on Wednesday thus playing a vital role in propelling the crypto values including Bitcoin to $64,000 and ethereum to $2,500. Dogecoin is believed to be part of the same mania.
Moreover, Dogecoin stormed the internet when many internet celebrities like Snoop Dog, rock musician Gene Simmon, and Elon Musk showed their interest in crypto. Elon Musk alone is believed to have made a great impact on the value of dogecoin. Many people purchased a large amount of DOGE thereafter, thus giving a sudden spike on the graph taking the value of the coin from $0.062 to $0.078, a 20 % increase in just 24 hours.
Take a look below on some of the tweets made on Dogecoin : )
Dogecoin vs other cryptos. What is the difference?
As stated by its owner dogecoin is more fun and quicker alternative to cryptos like Bitcoin. Some features that make dogecoin different from bitcoin is that it’s quick and easy to mine by solving mathematical equations. Thereafter it gets recorded in the registry which makes dogecoin more payment efficient than bitcoin.
It takes almost 10 minutes for bitcoin to verify the transaction and add up in its blockchain peer network whereas it takes only 1 min for Dogecoin to do the same informed by Gary DeWaal, Chair of Katten’s Financial Markets and Regulation group.
So you must be wondering what is Dogecoin capped on? or what is the total volume of Dogecoin that is supplied to the market? One of the most significant differences that make dogecoin stand out from other cryptos is the fact that it does not have any lifetime cap in its number and there is no possible limit to how many Dogecoins can be created. Whereas most popular cryptos like Bitcoin, Ethereum, Litecoins have some sort of cap on how many of them can be created. The Lifetime cap on Bitcoin is $21 million, the cap on Ethereum is $18 million per year.
Is this a good investment and should you buy it?
No one knows what is dogecoin’s future going to be. Some investors are afraid that Dogecoin is a hoax bubble that will explode leading to massive loss. The truth is bitter but buyers have no plan of long-term investment and will continue to trade as long as the digital asset in gaining profit by blowing air inside its popularity bubble.
It’s the same thought which was also prevalent when Bitcoin first came to mainstream media. Many had risked their saving by investing in the asset and the rest is history as we all know bitcoin touched its all-time high of $65000 in early 2021. Experts suggest that investing in such a volatile coin is risky but can also be rewarding. So invest as much you can bear.