Unless you live under a rock or have just come back from a pretty long camping trip in the woods, you must have heard some Dogecoin news. The meme cryptocurrency, based Shiba Inu dog breed, has emerged as an investor’s dream, with over 13,000% returns in the last few months. While the whole cryptocurrency market was booming, the Dogecoin cryptocurrency appeared as the world’s most popular crypto coin. Celebrities started to support the coin, and many brands, too, have included the Dogecoin cryptocurrency in their marketing plans.
But as the coin gets mass community support, investors buy the coin in large volumes, celebrities come in support of the coin, and a question indeed arises. ‘Is Dogecoin Worth It All?’
What Is Dogecoin?
DogeCoin is the world’s first meme coin. It was developed by IBM software engineer Billy Markus and Adobe software engineer Jackson Palmer as a way to take a dig at Bitcoin. It later got popular amongst investors, thereby increasing its value.
While the cryptocurrency ecosystem was just growing, Billy Markus, a programmer from Oregon, wanted to support the ecosystem, but not with a comprehensive cryptocurrency that would revolutionize the financial world, but with a ‘joke.’ His reason? He wanted something more accepted by the community, which still hadn’t accustomed itself to Bitcoin. The Dogecoin cryptocurrency came from the idea of a ‘joke’ open-source, peer-to-peer cryptocurrency built with the brand picture of the Doge, a Shiba Inu dog that became popular as a meme.
While the Dogecoin vs. Bitcoin battle never took off in terms of financial numbers, it surely did spark colossal community support. Dogecoin now has one of the world’s most prominent and active communities. In early 2021, the community rallied behind the coin after trends started emerging on TikTok and many other social media platforms to ask users to invest in Dogecoin. Dogecoin’s prices and market cap reached monumental heights, and Dogecoin news filled every one of the social or news platforms for weeks.
History of Dogecoin Cryptocurrency
The story of the Dogecoin cryptocurrency started in 2013, when Billy Markus, a software engineer at IBM, and Jackson Palmer, a software engineer at Adobe, carved out a new cryptocurrency combining Doge and Bitcoin. The result was the crowd-favorite Dogecoin. However, what’s impressive is that those two didn’t even meet before making the Dogecoin cryptocurrency, and the idea was conceptualized due to Reddit’s support and the founder’s interest in cryptocurrency.
However, as soon as the product was released in December 2013, the Dogecoin official website started receiving large-scale traffic, and over one million unique visits were recorded in the first month alone. The currency instantly became a trend on Reddit and, in no time, reached a market value of over $8 Million. Developing its own culture in the crypto realm, Dogecoin garnered massive support from the community, helping the crypto penetration among investors and traders.
While it was never really built to compete with Bitcoin, its market cap and trade volume have been growing consistently. The market cap crossed $2 Billion in 2017 and was still going strong. However, by then, Jackson Palmer had left the picture as he took a leave of absence, citing the toxic nature of the cryptocurrency ecosystem.
All was going more or less the same, but in early 2021, Reddit communities rallied behind Gamestop and AMC in a bid to fight the hedge funds shorting these stocks. While the war resulted in billions in losses for these funds, the community soon shifted their focus to the Dogecoin cryptocurrency and decided to “take it to the moon”, or at least $1 per coin. Mind you, the coin was at a low price of $0.03 at the time.
While many trends failed, people started investing in Dogecoin, and soon, the coin started giving phenomenal returns, and in no time, reached an all-time high of nearly $0.74. As the Dogecoin stock surged, many new investors, too, started joining the trading train. While currently, Dogecoin is trading at $0.33 per coin, the community is still working hard to reach the moon.
Interesting Facts About Dogecoin
Dogecoin has been quite popular over the years and has received endless support from the community. But what makes this cryptocurrency with a dog face so interesting? Let’s find out!
1. Inspired by Lucky Coin
The Dogecoin cryptocurrency was inspired by Lucky Coin, another cryptocurrency at that time. In the initial launch phase, the founders added a pretty humorous feature, where miners would either get 0 coins or thousands of coins for producing new blocks, a feature present in the Lucky Coin as well. The developers later changed it to a fixed rate of 10,000 coins per day.
2. Endless supply
Both the Dogecoin cryptocurrency founders wanted to be as comical as possible while creating the coin. Therefore, they made a circulating supply of over 120 million Dogecoin in the initial phase, and no limit to how many coins can be in the market. As of today, over 129 Billion Dogecoins are in the market. Every minute, 14.4 million new Dogecoins enter the supply, adding $5.2 Billion Dogecoins to the pool every year.
3. Extensive online community
Ever since it started, the Dogecoin cryptocurrency has garnered a large amount of community support, especially over Reddit and Twitter. These community members invest in Dogecoin and keep it in the news to catch the attention of more users. As Dogecoin’s value increased and more investors adopted the cryptocurrency, more platforms such as Tik-Tok, too, started Dogecoin trends and rallied users to invest in Dogecoin.
4. Dogecoin helped athletes achieve their dreams
2014 was a big year for the Dogecoin community, as it came together for not one but two excellent initiatives. First, the Reddit Dogecoin community raised nearly $93,000 in less than three days from crowdfunding to send the Jamaican bobsled team to the Sochi Olympics. Following such fantastic community support, the Jamaica Olympic Association agreed to cover the group’s travel costs while the raised funds covered training and equipment.
But that’s not all. Later that year, the Dogecoin community raised $55,000 to sponsor NASCAR driver Josh Wise after the Reddit Nascar community discovered him as a promising talent in need of funds. The community raised 67 Million Dogecoins, amounting to nearly $55,000 in eight days, to sponsor the car, which was then covered in images of Dogecoin and the Reddit alien.
Why Is Dogecoin Going up?
For any asset, some of the most critical factors are viability, liquidity, and the overall notion of the community for it. But the Dogecoin cryptocurrency was never really expected to take off in terms of price, as it was just created as a joke. Celebrities such as Elon Musk have always joked about Dogecoin, and the community, too, accepted the cryptocurrency with all its flaws due to its comical nature. But the Dogecoin cryptocurrency has always helped spread awareness about the importance of Blockchain technology and helped increase cryptocurrency penetration in the world.
However, over the past few weeks, following the Gamestop and AMC Entertainment Holdings stock frenzy started by the r/wallstreetbets Reddit community, users started creating trends about Dogecoin and taking its value “to the moon.” What once started as a harmless trend sent users into a Dogecoin buy mania, and the value of the cryptocurrency rose from a meager cent at the year start to almost $.70. Elon Musk, too, has been tweeting Dogecoin a lot, rallying up the prices even more.
But the Dogecoin-Elon Musk love story is not recent and has existed for a long time, majorly on Twitter. Recently, when Elon Musk and Tesla decided to halt car purchases using Bitcoin due to environmental concerns, Elon Musk slandered Bitcoin but still praised Dogecoin. Therefore, it is safe to say that the Dogecoin value has been going up majorly due to the community and a heavy influence from Elon Musk.
Is it Worth Investing in Dogecoin?
If you bought the Dogecoin cryptocurrency on 1 January 2021, the coin would have cost you less than half a cent, or $0.005. A $100 Dogecoin purchase at the start of the year could have resulted in a nearly $14,000 Dogecoin value in early May. The returns were phenomenal and an investor’s dream. But now, since everyone has woken up, is Dogecoin worth it?
Before you invest in Dogecoin or any cryptocurrency, for that matter, make sure you understand that popularity doesn’t mean reliability. Many investors are now spreading caution that Dogecoin may, in fact, be a bubble. And the recent drop in prices may be the start of the bubble popping. On the other hand, many experts believe that community support can rally prices even higher and make it a sustainable investment. It is imperative to note that currently, Dogecoin serves no purpose. What started as a joke cryptocurrency, while it has gained support from the community, still isn’t helping make transactions faster, cheaper or secure. So, is Dogecoin worth investing in?
According to many trading gurus, Dogecoin is worth investing in, but only with the money that you are okay losing. While almost all seasoned investors apply this philosophy, in the case of the Dogecoin cryptocurrency, its importance increases. Moreover, it is a way riskier investment than significant coins such as Bitcoin and Ethereum, which solve financial shortcomings in the traditional system. But the low price, extensive community, and overall market penetration make it all worth it. In the end, if you invest in Dogecoin, it is imperative to know when to exit from your investment, as the “to the moon” philosophy can convert into losses really fast.
Dogecoin Price Prediction
The Dogecoin news has been everywhere, and it has been the centerpiece of the crypto bull run we witnessed in 2021. The past few weeks have been highly fanatical for the Dogecoin cryptocurrency and the investors that jumped onto the hype train. Every Dogecoin prediction failed miserably, and the coin reached nearly $0.74 from a low price of just $0.04 at the start of the year.
But the prices have gone down, and at the time of writing, Dogecoin’s value was $0.33, as the market was witnessing a bearish trend.
However, if the community support continues, Elon Musk and other celebrities keep Dogecoin news at the top, and we see some actual changes in the transaction dynamics of the cryptocurrency, the prices may reach all-time highs. Many Dogecoin forecasts put the value of the coin at $1 by the year-end. Still, every prediction should be taken with a pinch of salt, as the market’s dynamics and investor mindset can put the Dogecoin value anywhere.
How & Where to Invest in Dogecoin?
Since Dogecoin has been in the news for a large part of the year and has showcased enigmatic returns in the past few weeks, more and more marketplaces have started listing Dogecoin for traders to trade the coin. While it still has a long way to go in being as widely available as other top cryptocurrencies, traders are hopeful all major exchanges will start listing the Dogecoin cryptocurrency.
If you are struggling to find where to buy Dogecoin, you can head on to major exchanges such as Binance, Kraken, Robinhood, Crypto.com and Mudrex. Premium exchange Coinbase, too, will soon list out the cryptocurrency to help traders invest in Dogecoin.
Before you buy Dogecoin, ensure that you have a functional crypto wallet that will help you store your crypto securely. Since exchanges are prone to cyberattacks, keeping all your cryptocurrencies in a secure wallet is recommended. Once you have the wallet ready, you are good to go.
Once you have logged into the crypto exchange where you want to buy Dogecoin, it may have different payment methods. The three most common payment methods in exchanges are:
- Credit/Debit Cards
- Direct Bank Transfer
- Cryptocurrency
While the first two methods are effortless, they may be subjected to country regulations and transfer fees. That is why many exchanges offer user to deposit a cryptocurrency and then trade it with other users for Dogecoin or whatever crypto they wish to buy. Once you have purchased Dogecoin, you should add your wallet address and get your coins out of the exchange.
Final Thoughts
Even though the prices have now started to dip again, the news and hype around the Dogecoin cryptocurrency are still prevalent, hooking up new users to invest in it. While more investors are now starting to invest in the coin, the Dogecoin-Elon Musk saga continues, especially on the Twitter account of the billionaire. However, many investors are skeptical about the Dogecoin value, as the coin has no practical use and has an endless supply. But all the Dogecoin projections have failed in the past few months, as traders have rallied the price to unfathomable levels. Whatever the future of the Dogecoin cryptocurrency may be, we are certainly going to hear about this legendary run for a long time.
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