Exposure to DOGECOIN, a cryptocurrency launched in 2013 that now has a market capitalization of about $9 billion, placing it among the top 20 digital currencies in the world.
Despite the fact that the Dogecoin price is just about 7 cents, the cryptocurrency, which trades under the symbol “DOGE” on exchanges, has seen a 1,400 percent increase in 2021. The virtual money, pronounced “dohj coin,” has burst onto the scene this year, with a slew of celebrity followers, including Tesla CEO Elon Musk (ticker: TSLA), hyping it on the way to fresh all-time highs.
So, what is the DOGE’s case? Should you put money into Dogecoin? Looking at the cryptocurrency’s past, contrasting it to competitors, and analyzing its incredible growth should help address the query.
“Dogecoin has become a fascinating invention for traders,” says Julian Hosp, CEO and co-founder of Cake DeFi, a decentralized finance platform that allows users to bail out cryptocurrencies in exchange for interest. “If you consider that Dogecoin was originally developed as a joke based on a meme,” Hosp says, “it’s amusing.”
That’s right. The mascot of Dogecoin is a shiba inu dog that became an online phenomenon in 2013. It’s also not in the discussion for being a decent store of money, unlike Bitcoin: There are currently over 129 billion DOGE in circulation. There are fewer than 19 million Bitcoin in circulation, with just 21 million possible. There is no limit to the number of Dogecoin units that can be produced, and billions more are created every year.
That’s a lot of dilution.
The vast supply may explain why a coin that was worth roughly 30 times its value a year ago and more than 10 times its value at the start of the year is now only worth around 7 cents.
Of course, a silly token will take off in 2021, a year when so-called “meme stocks” such as GameStop (GME), AMC Entertainment (AMC), and Bed Bath & Beyond (BBBY) exploded on the back of Reddit-fueled speculation.
Hosp says, “This also goes to demonstrate the importance and strength of social media and the’meme culture’ as a genuine driving force behind the currency’s acceptance and lasting popularity.”
GME, AMC, and BBBY – the three meme stocks listed above – are now trading well below their highs set during the speculative mania that engulfed markets in late January and early February.
Investing in Dogecoin is simple; anybody with a little spare cash and a Robinhood account may get involved.
Trying to Determine the Value of DOGE
There are more red flags for George Chrysochou, an investor and global marketing strategist for Financer.com, than DOGE’s meme status alone.
“The initiative has always been community-driven and has never received formal adoption,” Chrysochou says. “There is no official road map or white paper for it. Its founder and key developers left the project in 2015, and have stated on many occasions that they think it is overpriced.”
“Dogecoin would certainly not be a reliable investment in 2021 without a proper team, technical growth, and road map,” Chrysochou says.
There are crucial contextual considerations to think about. Qualitative considerations are particularly significant in cryptocurrencies, which lack the value of profit forecasts or dividend yields. However, there are some objective methods for determining a currency’s equal worth, such as examining how it has traditionally been priced in relation to other cryptocurrencies such as Bitcoin.
The easiest way to compare DOGE and BTC is to price the currencies in microunits of Bitcoin called satoshis, or sats, which mark one hundred millionth of a Bitcoin.
“It peaked at 155 sats in 2017. In 2021, it reached 200 sats before settling at about 100 sats “Chrysochou expresses his thoughts. “Bitcoin hits $300,000 in the most ambitious case for this bull run, and DOGE reaches 300 sats, or nearly 90 cents.” To hit the 90 cent mark, Dogecoin, which is currently worth about 7 cents, will have to more than double in value in comparison to Bitcoin. It’s currently worth about 118 satoshis.
Dogecoin is a first-generation cryptocurrency that can be used to securely send money around the world. Dogecoin is well-known for featuring the Shiba Inu from popular internet memes. The developer’s ability to keep the project light-hearted led to the selection of this character. The primary goal of this coin, like Bitcoin and Litecoin, is to allow for censorship-resistant peer-to-peer transactions. Thanks to recent price increases, Dogecoin has received a lot of media attention. This isn’t the first time this blockchain network has made headlines, as you’ll soon discover.
What Issues Does Dogecoin Address?
Dogecoin, like other first-generation cryptocurrencies, has limited features. There were no smart contracts, staking, or any of the other features that are now standard in the industry at the time. The primary goal of these early coins was to provide a stable network. To that extent, Dogecoin was a huge success, but not without its share of setbacks.
The second characteristic of Dogecoin, and perhaps what really distinguishes this coin, is the ethos that its creators wished to convey. Dogecoin, unlike Bitcoin, was not designed to save the masses from injustice. It was also not designed to be a competitive market alternative to Bitcoin, as Litecoin is. Surprisingly, this coin was created with the aim of spreading goodwill and amusement in the crypto world.
What distinguishes Dogecoin (DOGE) from Bitcoin?
Dogecoin is a cryptocurrency, or digital currency, that can be used for peer-to-peer transfers through a decentralized network, similar to Bitcoin. One significant distinction is that Dogecoin was created as a joke with an image of a dog on it, while Bitcoin was the first blockchain proof-of-concept. The coin, which was once worth a fraction of a dollar less than a year ago, has more than doubled in value thanks to a buying spree sparked by social media sites such as Reddit and Twitter.
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What’s the point of buying doge?
While becoming a DOGE millionaire is not difficult, it can be difficult if you just consider tiny tips in internet chat rooms.
And if you don’t want to carry your lavish DOGE lifestyle to the next step, there may be reasons to buy DOGE.
Dogecoin is a peer-to-peer electronic payment mechanism inspired by the Shiba Inu dog’s famous 2013 meme. It was forked from Luckycoin, which was forked from Litecoin. There is no limit to the amount of Dogecoins that can be produced, unlike Bitcoin, which has a finite number of coins. It’s used for microtransactions and article suggestions. It was first released on December 6, 2013, by programmers Billy Markus and Jackson Palmer.
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Dogecoin’s Advantages.
Dogecoin offers a variety of advantages to the industry. For starters, you will use this coin in the same way as Bitcoin can be used to transfer money to everyone in the world easily and safely. The coin’s network has grown in recent years, and now more vendors than ever support this one-of-a-kind token.
Resistant to Censorship
Dogecoin has several technological similarities with Bitcoin, the world’s first cryptocurrency. As a result, the network is safe and allows for real-time consensus. To change the status of the blockchain, hackers will need to access 51 percent of the network’s hashing capacity, similar to Bitcoin. This is highly doubtful, given the estimated Dogecoin hashrate of 203.97 TH/s.
What Is Dogecoin and How Does It Work?
It’s not difficult to argue that much of Dogecoin’s code is a carbon copy of Bitcoin’s. One of the coin’s creators, Billy Markus, claimed that it only took 3 hours to construct Dogecoin while discussing the concept. He explained how he scrolled through Bitcoin’s code and replaced all instances of Bitcoin with Dogecoin using the control F feature.
He has made a few more changes to the definition, such as changing the word mining to drilling. Markus, for example, chose a one-minute block time. The block time of a blockchain network refers to how often a new “block” of transactions is connected to the “line” of transactions.
Convergence.
To keep the network stable, Dogecoin employs a Proof-of-Work consensus algorithm. This PoW scheme, though, is not the same as the SHA-256 implementation used by Bitcoin. Instead, the network’s PoW system is based on scrypt technology. This decision was taken in order to avoid the use of high-capacity Bitcoin mining machines. Dogecoin can only be mined with dedicated FPGA and ASIC units.
Coins in whole
There is no hard limit on Dogecoin. The project started with a total of 100 billion coins in circulation. Because of the one-minute block periods, all of these coins had been mined by 2015. At the point, the developers agreed to issue another 5 billion. Notably, Dogecoin now has a 5 billion coin issuance plan per year.
Dogecoin Digging (Mining).
There are diggers in the Dogecoin ecosystem. This network nodes are responsible for validating new transactions and adding blocks to the blockchain. Notably, Dogecoin mining is less lucrative than Bitcoin mining. It’s worth noting that the coin’s creators never did a pre-mine. Pre-mines are common because they enable developers to accumulate reserves prior to the network’s public launch.
Dogecoin’s Past
Billy Markus and Jackson Palmer developed Dogecoin. Prior to Dogecoin, both of these people have worked in the computer industry. Markus worked as a software developer for IBM, and Palmer worked as a programmer for Adobe. Dogecoin began as a practical joke aimed at the industry.
A Small Beginning.
The network went live on December 6, 2013. Initially, the idea just drew the interest of a small group of Reddit users. These individuals will give each other Dogecoin tips. On the day of the coin’s announcement, the Dogecoin website had over a million users.
On December 19, 2013, Dogecoin reached a major milestone. In less than three days, the coin’s worth increased by almost 300 percent. This was the first time Dogecoin had sparked widespread investor interest in the industry. The rebound, though, was short-lived, and the coin’s value had retraced by 80 percent in just three days.
Dogewallet, the company’s native wallet, was compromised a few days later.
A Close-knit Group.
This may have marked the culmination of many programs. It was a chance for Dogecoin to demonstrate that it is so distinctive from other coins. To restore the stolen coins, the developers and community immediately launched the “SaveDogemas” donation program. Surprisingly, this initiative was able to offset all losses.
The nation hosted a fundraiser effort in early 2014 that raised $25,000 for the Jamaican bobsled team. This was the culmination of a massive fundraising campaign. The group then concentrated on obtaining safe drinking water in Kenya. Dogecoin went on to educate support dogs for autistic children after another promising case.
a large sum of money.
Dogecoin was listed on the Moolah exchange the same year. The listing boosted Dogecoin’s reputation and increased the network’s liquidity. Surprisingly, Alex Green, a Reddit regular, was in charge of the launch. He went by the username Moolah_ on Reddit.
On January 7, 2018, Dogecoin experienced another demand boom, reaching a new all-time high of $0.017/coin. This increase happened after the crypto-breakout when all altcoins saw significant increases. Another increase in the coin’s value happened in July 2020, after TikTok users launched a movement to boost the coin’s value.
A Significant Rally.
Dogecoin raised eyebrows once more this year. As a part of a drive to destabilize predatory hedge funds, the token increased by over 800% in just 24 hours. A collective of Reddit members, led by a person known as WSBChairman, arranged the rally. The run took off after Elon Musk, the world’s richest man and founder of Tesla Motors, gave his blessing to the plan.
Squeeze Squeeze
Certain hedge funds have started naked short selling GameStop securities, according to a community of Reddit members. The word “shorting stocks” refers to betting against a stock’s valuation. Shorting a stock entails taking out a loan against it, selling it, and then repurchasing the same stock at a cheaper price. The gap is held until you repay the loan.
Shorting a stock has the advantage of allowing you to reap handsomely from market downturns. The disadvantage of shorting a stock is that once the stock rises in value, you must repurchase the stock at the current market value. The Reddit community realized this and started pumping GameStop stock.
Hedge funds have lost billions of dollars.
Hedge funds lost billions as a result of this maneuver. The losses were so severe that many people think they contacted the most successful trading sites, such as the Robinhood app, and requested that they stop buying these stocks. As a result of the announcement, the value of GameStop’s stock plummeted. With a court trial due to begin in the coming weeks, it has also ignited political and media backlash.
The same group of buyers shifted their attention to Dogecoin after realizing that markets could be stopped far more easily than cryptocurrencies. Dogecoin was thrust back into the spotlight as a result of the promotion, reaching a record all-time high just short of $0.08.
Where Do I Buy Dogecoin? (DOGE)
At the moment, Dogecoin is only available on a few exchanges. This coin is supported by both Binance and Kraken. The best part is that these are fiat on-ramps. Using a debit or credit card, you can buy cryptocurrencies directly. However, you must first finance your account before converting your fiat to Bitcoin, ETH, or some other fiat-pairable currency. to be a more flexible investor
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How to Keep Dogecoin Safe
Dogecoin can now be stored in a variety of ways. One of the most effective methods is to use the Jaxx wallet. This wallet is available for free on both Apple and Android smartphones. This app allows you to store Dogecoin as well as a wide range of other coins. You can also exchange your coins directly from the wallet, which is very impressive.
A hardware wallet is the best choice if you want to make a large investment in DOGE or if you intend on HODLing this cryptocurrency for a long time. Hardware wallets secure the cryptocurrency in “cold storage” off the internet. This tactic prevents online threats from gaining access to your assets. Both the Ledger Nano S and the more sophisticated Ledger Nano X are excellent options.
Dogecoin is a cryptocurrency that began as a joke. It is now a globally recognized project.
Dogecoin has come a long way from its humble beginnings as a fun idea to contributing $100,000 to charity to being a key figure in the WSB Reddit drive. Only time will tell when the next Dogecoin breakout occurs, so it will be a massive occurrence if it is anything like the previous ones. This seems to be caused by a single Elon Musk tweet, based on recent history.
It’s important to consider the distinctions between Bitcoin and Dogecoin as you develop your investing plan. As the world’s first blockchain, Bitcoin set the stage for what has since become a financial movement. The global effect of this coin cannot be overstated. It has served as an inspiration for other exciting and fascinating ideas on the market since its inception. Dogecoin is one such initiative.
Development of Bitcoin vs. Dogecoin.
It was the first time a functional digital currency was developed when Satoshi Nakamoto launched the Bitcoin whitepaper 11 years ago. Unlike its forerunners, Bitcoin’s anonymous founder was able to avoid the double-spend problem that troubled previous efforts to develop a digital currency. The word “double spend” refers to a hacking tactic in which a person makes a payment and then resends the same coins to another party before the payment is processed. Any banking system would obviously fail if it was possible to deliver the same coins to different citizens. Nakamoto solved this problem by including a timestamp into the hashing algorithm.
He discovered that incorporating the time stamp into the hashing algorithm would prevent the same coins from being expended twice because they would have to be sent at the same time. This breakthrough was pivotal in allowing Bitcoin to become the world’s first true cryptocurrency.
Development of Dogecoin
The production of Dogecoin was greatly influenced by the sound ideas that Bitcoin brought to the industry. Billy Markus and Jackson Palmer, the coin’s creators, were also acquainted with Bitcoin and how it used blockchain technologies to achieve its goals. Both of Dogecoin’s pioneers were computer scientists. Markus worked as a software developer for IBM, and Palmer worked as a programmer for Adobe.
They were able to develop Dogecoin with little effort thanks to their previous experience. Surprisingly, Markus claims that entirely programming Dogecoin took less than three hours. He clarified that he actually omitted all references to Bitcoin from the code and replaced them with Dogecoin.
The goal.
Despite their technological similarity, these two programs were launched with somewhat different goals in mind. Bitcoin was developed to offer a sustainable solution to the existing banking system to the rest of the planet. The coding and whitepaper of the coin provide several markers of this goal. The terms “The Times 03/Jan/2009 Chancellor on verge of second bailout for banks” are encoded in the first block of Bitcoin’s blockchain, also known as the Genesis Block.
This hidden message reveals the real purpose of this coin. The message alluded to a story in the New York Times at the time. Nakamoto noticed that the future was reliant on a financial system that was less concerned with stability and more concerned with retaining population balance by monetary coercion. In order to further the manipulation, the central banking regime agreed to change the metrics and price indexes once again.
It is because of this goal that Bitcoin has attracted so many ardent supporters. Many of Bitcoin’s most enthusiastic supporters agree that Bitcoin is the best means for ordinary people to break free from the relentless loop of monetary terrorism. They back you up.
The Purpose of Dogecoin.
Dogecoin, on the other hand, did not reach the industry with those lofty goals in mind. Markus has confirmed that the coin was originally developed as a joke. His motives, like Bitcoin’s, are woven into the coin’s features. The name Dogecoin, as well as its now-famous Shiba Inu logo, was inspired by a viral meme at the time. The coin wasn’t created with a religious intent in mind; rather, it was created to make people happy and have a good laugh from the few people they felt would actually see the project.
Dogecoin has gone on to do a lot of good for people all around the world, beyond its humble ambitions. Dogecoin began to attract value not long after its publication. The token’s developers thought it would be in good spirit to further their good wishes by contributing their proceeds to worthwhile projects around the world, as the idea began with a comic nature.
Dogecoin’s goodwill started almost as soon as the coin was issued. Dogecoin’s value increased by 300 percent days after its debut, almost miraculously. The gains didn’t last long, but they did show that there was a market for a lighter, more enjoyable version of Bitcoin.
What Does the Future Hold for Dogecoin and Bitcoin?
With the current state of the industry, it’s reasonable to believe that cryptocurrencies like Bitcoin are on the brink of widespread acceptance. Several global financial companies have sold their fiat shares and transferred their assets to Bitcoin this year. The industry soars to new heights every time another company undergoes this transformation. As a result, these businesses profit greatly.
For eg, Tesla Motors, a well-known electric vehicle manufacturer, recently invested $1.5 billion in Bitcoin. Tesla had made more money from the surge in Bitcoin’s valuation in 30 days than they had from selling their vehicles for the whole year.
