What is Dogecoin? A slightly bizarre name and a nice emblem hide one of the cryptocurrencies. Its importance has grown since it was advertised on Twitter by the famous Elon Musk. What is worth knowing about it? What are the prospects of investing in this cryptocurrency?
Elon Musk’s activity on his Twitter account has made Dogecoin very fashionable. The creativity of its fans is very high, but the popularity has already gone beyond mere fashion. The currency, which was created a bit for a joke a few years ago, has become a prized investment asset. While there is no comparison between it and Bitcoin, it is certainly an interesting phenomenon.
Before we get into the history of Dogecoin itself, it’s worth noting the origins of its popularity, which is barely a few months old. Before mid-April, its trading was relatively low – at least stabilized at a low level relative to earlier periods. However, the storm was caused by Elon Musk’s tweets, who had previously done the same with Bitcoin (including announcing that he would invest $1.5 billion in it)
What the controversial rich man is doing with social media reads almost like a prediction. on April 15, Musk uploaded a picture to his account with the caption “Doge Barking at the Moon
Doge Barking at the Moon pic.twitter.com/QFB81D7zOL-Elon Musk (@elonmusk) April 15, 2021
The result? Over 300k likes and a widespread belief that this particular cryptocurrency is an asset worth investing in. Later Dogecoin was a guest on Musk’s Twitter account several more times. The real craze, in terms of its quotes, occurred between May 8 and 10. Afterwards, the quotes dropped, but they still remain at a level several times higher than before the whole action. Billionaire’s whim or something more? Time will tell if investing in Dogecoins makes sense. They are currently one of the top 10 cryptocurrencies.
Despite appearances, Dogecoin is not something new. The beginning of its history dates back to December 6, 2013. That’s when it was invented as a kind of joke with Bitcoin, which reached a price of $1,000 at the time. It was created by Billy Markus and Jackson Palmer, who thus referred to the then popular memes with a shiba inu dog – popular in Poland “piese³”. At the time, images with the wiry foursome were much more famous, but things have changed in recent months
The cryptocurrency in question is based on a peer-to-peer network. Its characteristics were meant to lead to Dogecoin becoming a much more common currency than Bitcoin. The idea itself also came about to create a slightly better publicity for cryptocurrencies than the one it gained from Bitcoin
It is worth noting that Dogecoin’s debut in 2013 grew into a major and interesting event. It took only 30 days for a million people to visit its website. In turn, the value grew several times. The subsequent fate of the cryptocurrency was no longer associated with successes.
Actually, it must be admitted that Dogecoin’s great comeback was made possible by Elon Musk. From January to May 2021, the cryptocurrency has managed to increase by 13000%. In terms of capitalization, it is the fourth largest currency on the market. What about the future of Dogecoin? Certainly, this interesting creation has already messed up a lot in the cryptocurrency market. It is speculated that there will be a strengthening of cryptocurrencies smaller than Bitcoin in the near future. Will this happen? It is difficult to prophesy today.
Main Photo: Executium/unsplash.com