Dogecoin (DOGE) is a cryptocurrency that started out as a joke about price speculation in the cryptocurrency itself. The creators aimed to create a cryptocurrency that no one would seriously invest in. However, DOGE did not follow this plan! Motley Fool crypto expert Lyle Daly takes a deep dive into the popular meme coin.
How did Dogecoin (DOGE) get started?
Since its launch, Dogecoin has had no shortage of people ready and willing to invest. In the first half of 2021, its price has increased by more than 15,000%, making it the world’s largest meme-coin. Although the Dogecoin craze has cooled considerably, it still has ardent supporters. If you are considering joining the ‘Shibes’, the tribe of DOGE fans and investors, then you need to know about this cryptocurrency.
Dogecoin was launched in 2013 by two software engineers, Jackson Palmer and Billy Markus. Palmer first came up with the idea as a joke on Twitter. He then created a Dogecoin website and left a note there to contact if someone wanted to turn the idea into a real cryptocurrency. After hearing about Dogecoin, Markus accepted Palmer’s offer.
The technological roots of Dogecoin can be traced back to the first cryptocurrency, Bitcoin (BTC). Dogecoin is a fork of a now-defunct cryptocurrency called Luckycoin. Like an evolutionary fork, DOGE developers copied the source code of Luckycoin and modified it to create Dogecoin. Dogecoin was first released on December 6, 2013 by Markus and Palmer. From the beginning, it was marketed as a casual, fun cryptocurrency. Dogecoin quickly built a loyal following. Also, the Dogecoin community completed several successful fundraising events in 2014. Fundraising provided:
- $30,000 to help send the Jamaican sled team to the Winter Olympics
- $50,000 to build water wells in Kenya
- $55,000 to sponsor NASCAR driver Josh Wise
How did DOGE explode in popularity?
In 2015, both Palmer and Markus left Dogecoin and a team of four part-time developers took over. As you follow on Kriptokoin.com, Dogecoin’s popularity exploded by 2021. Thus, cryptocurrency has become much more common. Also, Dogecoin has publicly gained a significant fan: Elon Musk. Tesla CEO raised the price and market value of Dogecoin several times after tweeting about the digital asset. He was also frequently mentioned while hosting Saturday Night Live.
While many expected Musk’s appearance on Saturday Night Live to take this digital currency to new heights, it had the opposite effect. After its appearance, the value dropped more than 75% in less than two months. As it turned out, the road to the show would be the peak of Dogecoin hype in 2021.
How does Dogecoin work?
Dogecoin is a cryptocurrency that can be bought, sold, transferred and used for purchases. But very few traders accept this or other cryptocurrencies. It uses Blockchain technology to maintain a decentralized digital ledger that records all Dogecoin transactions.
Like Bitcoin and many other cryptocurrencies, Dogecoin has a Proof-of-Work (PoW) method and a process called mining to verify transactions. Dogecoin miners use devices such as computers with high computing power to solve mathematical equations that verify and record transactions on the Dogecoin Blockchain. In exchange for verifying DOGE transactions, miners get paid in Dogecoin.
Much more efficient than Bitcoin, according to Dogecoin loan. DOGE mining is faster and requires much less energy than Bitcoin mining. Therefore, it does not even come close to the environmental impact of Bitcoin. Dogecoin transactions are also much faster and cheaper than Bitcoin transactions. However, he is not alone in this. There are now many popular types of cryptocurrencies that exceed Dogecoin’s transaction fees and transaction times.
How many DOGEs are there?
More than 130 billion Dogecoins are currently in circulation. Meanwhile, DOGE is an inflationary cryptocurrency. So there is no maximum supply of Dogecoins. The initial resource (100 billion Dogecoin) was mined before 2015. Also, around 5 billion additional Dogecoins have been mined annually since then.
Is DOGE a good investment in 2023?
It might be a fun concept, but Dogecoin is not a good investment. It does not derive value from another asset like stablecoins do or add value to any financial system like Ethereum (ETH). Dogecoin’s biggest asset outside of its entertainment value is its community. Dogecoin aficionados enjoy being teased. Many more crypto investors avoid Dogecoin for fundamental reasons or tend to invest only very small amounts.
Since DOGE has no appreciable intrinsic value, its popularity largely determines its value. This can yield exciting short-term gains. However, it is not a suitable strategy for long-term investment success. The popularity of Dogecoin has probably peaked and the next trendy cryptocurrency will soon emerge and grab our attention. Experts advocate for investors to adopt a long-term, buy-and-hold approach to investing. If you are planning to invest in cryptocurrency, you have much better options besides Dogecoin.
The opinions and recommendations in the article belong to the experts and are definitely not investment advice. Therefore, we recommend that you do your own research before investing.
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