We’re going to the moon.
The proponents of Dogecoin or DOGE, a cryptocurrency that began as a joke but is now one particular of the most well-known coins all over, would have you consider that the sentence over is all you have to have to know about Dogecoin.
In a way, they’d be ideal. Dogecoin does not have to have a large amount of wondering. Enthusiasts of the cryptocurrency only invest in it and hodl it (a crypto way of expressing “not marketing”) till…effectively, right until some thing fantastic comes about. Right until you grow to be prosperous, perhaps.
But is it seriously that uncomplicated? Examine on.
The background of Dogecoin
It started as a joke. Bitcoin, the initial cryptocurrency, was an outstanding complex innovation that allow any individual trade electronic cash at reduced charges and without the need to talk to for anyone’s permission. But Bitcoin was also open source, indicating everybody could duplicate it, and at one particular stage, anyone did, with clones such as Litecoin and Peercoin popping up everywhere.
Dogecoin is the amusing respond to to this craze. Produced in December 2013 by software engineers Billy Markus and Jackson Palmer, it is really a copy of Bitcoin (more specifically, Litecoin, which itself is rather very similar to Bitcoin) that options the Shiba Inu doggy and is practically constantly referred to in silly language that abounds with doggy- and moon-relevant metaphors.
Nearly from the get-go, Dogecoin garnered a devoted following. It captivated persons who preferred the plan of crypto but preferred to make enjoyment of Bitcoin. It captivated persons who appreciated canine. It captivated anyone who was not notably really serious about crypto, but nonetheless wished to participate.
Not everyone will get it. Even its co-founder Palmer washed his hands off it — in 2018, he said that the skyrocketing price of Dogecoin was a sign that the crypto market was overheated. “I think it says a good deal about the state of the cryptocurrency area in general that a currency with a canine on it which has not introduced a software package update in about 2 a long time has a $1B+ industry cap,” he claimed in January 2018 — and guaranteed more than enough, the crypto marketplace endured a terrible crash a few days later on.
But Dogecoin persevered. Partly, most possible, thanks to the actuality that it would not require a whole lot of active management, and partly because of to the crypto room recovering immensely in 2020, Dogecoin has develop into more substantial than it ever was.
Is Dogecoin technically seem?
Not genuinely. Effectively, it is, in the sense that it started off out as a duplicate of Litecoin, which is fairly technically sound. It can be a cryptographically secured on line community that lets a single user mail DOGE to one more in a permissionless way. It will work, even though it’s not just about as protected or decentralized as Bitcoin.
But Dogecoin was by no means notably impressive. Confident, there are some variations — it has a shorter block time than Litecoin’s. Contrary to Bitcoin’s, its source is just not minimal — now, there are 129 billion DOGE in existence, and far more may possibly be minted. But the biggest big difference is that Bitcoin and Litecoin are actively managed, and usually updated to deal with bugs and shortcomings. Dogecoin does get current often, but occasionally yrs go prior to a new edition will come out.
You should believe of Dogecoin as Bitcoin’s silly cousin — it requires almost nothing very seriously and it doesn’t care about what will materialize tomorrow. It counts clouds although you thoroughly clean the household. It plays beer pong and listens to GWAR whilst you consider to do serious operate. DOGE just do not care.
Elon Musk <3 DOGE
Elon Musk likes silly stuff, and Dogecoin is plenty silly, and…you see where we’re going here. The CEO of Tesla and SpaceX has voiced his admiration for Dogecoin on numerous occasions, mostly on Twitter, with his tweets often propelling the price of Dogecoin to new heights — at one point, the price went up more than 100 percent following a Musk tweet.
In a Clubhouse interview in February, Musk explained why he likes Dogecoin. “Arguably the most entertaining outcome, the most ironic outcome would be that Dogecoin becomes the currency of Earth of the future,” he said.
When it comes to actual business, Musk is a far bigger fan of Bitcoin — after all, Tesla recently bought $1.5 billion worth of the currency, not DOGE. But Twitter and memes are one thing, and Tesla’s balance sheet is another. For now.
By the way, Musk isn’t the only celebrity endorsing Doge. Rapper Snoop Dogg is also on board, as is Kiss singer Gene Simmons.
Yup. I bought even more Dogecoin. Why? Because I believe it will go up. But that’s just me.
— Gene Simmons (@genesimmons) February 6, 2021
How do I buy a DOGE, and should I?
Dogecoin isn’t as ubiquitous on crypto exchanges as Bitcoin — for example, Coinbase and Gemini do not offer DOGE purchases. But many major exchanges, including the world’s biggest exchange, Binance, do offer support for Dogecoin.
Once you buy DOGE on an exchange, it’s similar to owning any other cryptocurrency: You can either keep your coins on the exchange, or transfer them to your own wallet software — an official wallet is offered on the project’s website, dogecoin.com.
Will Dogecoin hit $1?
Ah, so you’ve seen the price soaring, and you think it may be a good investment? Hold on for a second before you take the plunge.
While Dogecoin has a massive fanbase and the support of one of the world’s richest people, there’s no denying that the project isn’t as technically interesting as other major cryptocurrencies such as Bitcoin and Ethereum.
Think of it as stock of a company that produces next to nothing and consists of a few sofas in an empty office, but that has a really cool dog logo — and people, for some reason, really, really love it. Could the price of the stock go up? Sure. But it could also go down, all the way to zero, because…why not?
Here are a few numbers. The price of DOGE at the time of writing was $0.26. A year ago, it was around $0.002, making this a 13,000 percent price increase. With a circulating supply of more than 129 billion coins, the market cap (total price of all DOGE that currently exist) is now roughly 34.5 billion dollars. You’ll often see proponents saying that DOGE must reach $1 at some point. If that happens the market cap will be roughly $126 billion. Everything is possible, but you have to wonder, how far can the joke go?
It boils down to this: If you’re a professional or at least a very seasoned trader and you know what you’re doing, you might make money trading DOGE. But if you’re not, then you’re just gambling, and you should never gamble with money you cannot afford to lose.