Dogecoin, the meme-inspired cryptocurrency that no one took seriously before is on a spike. One tweet by the "Dogefather" Elon Musk is enough to cause a stir in the cryptocurrency market by increasing the price of Dogecoin. But why is Dogecoin so popular? Why is Elon Musk in support of just this cryptocurrency? Why is this affordable crypto coin a cult favorite among young minds? Let's find out all the answers here.
In 2013, software engineers Bill Markus and Jackson Palmer launched the meme crypto coin as a way to mock Bitcoin and other cryptocurrencies. That's not all. Unlike Bitcoins, which have a cap of 21 million coin supply, there is no limit to the Dogecoin supply.
All cryptocurrencies including Dogecoin are backed by blockchain technology. Blockchains are digital databases that store transaction information. Every transaction made with the exchange of a Dogecoin will be stored in the blockchain, which can be tracked. This blockchain technology doesn't work on a centralized server, hence cryptocurrencies are known as decentralized networks.
The name Elon Musk holds power when it comes to Dogecoins. After the SpaceX man called himself the "Dogefather" in a tweet, the price increased. And not just Elon Musk, Snoop Dogg, and rock musician Gene Simmons have also been vocal about Dogecoin on social media. Apart from the celebrity interest, another reason that made Dogecoin so popular was its price, compared to Bitcoin and Ethereum.
This depends on you. Do you want to bank on a crypto coin that is one of the cheapest in value but growing slowly but surely? Or are you skeptical about its progress? Like any other cryptocurrency, Dogecoin is highly volatile. In a Wall Street Journal Interview, Garrick Hileman from blockchain.com expressed his concern about the attention given to Dogecoin, like a bit of a joke.
In 2020, Dogecoin traded between $0.002 to $0.005 for the most part. During the end of 2020, the price started spiking. April 2021 saw the Dogecoin breaking all its previous records when it hit its all-time high of $0.2917. Seems like a valuable asset, doesn't it?
Elon Musk's SpaceX now accepts Dogecoin and soon, so will Tesla. When the SpaceX news came out, the value of Dogecoin increased and the same will be the case with Tesla.
Elon Musk also tweeted. "SpaceX launching satellite Doge-1 to the moon next year Mission paid for Doge 1st crypto in space, 1st meme in space." SpaceX Vice President of Commercial Sales Tom Ochinero in the statement released by Geometric Energy said, "This mission will demonstrate that application of cryptocurrency beyond Earth orbit set the foundation of interplanetary commerce."
Despite the ups and downs, Dogecoin is on a growth spree. Being an affordable cryptocurrency, if you're a first-time crypto investor, buying Dogecoins will be a good start. The latest price of a Dogecoin in USD is $0.5099.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.