What is Dogecoin?
Dogecoin, otherwise known as DOGE, is a cryptocurrency that is extremely popular around the world. The value of the dogecoins in circulation is worth more than 50 billion dollars, and the final value of the cryptocurrency is only estimated to increase. Dogecoin is heavily backed by the CEO of Tesla, Elon Musk, who steadily increases the value every time he speaks on the topic, whether through an SNL appearance or a tweet. However, to understand Dogecoin, it’s essential to know the story behind the popular cryptocurrency.
The Beginning of Dogecoin
The original cryptocurrency on the market was Bitcoin, which was a fantastic technical innovation that allowed anyone to pay low fees to exchange digital money without needing consent from anyone. However, the downside of the popular cryptocurrency was that it was open-source, which means that anyone can easily replicate the technology. At one point, tons of alternative cryptocurrencies did just that, offering the same services and ideas behind Bitcoin.
Dogecoin is a copy of Bitcoin created by software engineers Jackson Palmer and Billy Markus in December of 2013. It was made as a joke against Bitcoin and was designed to be a playful cryptocurrency, including moon-related phrases and images of a Shiba Inu dog. Due to its quirks, Dogecoin immediately started to gain a following from a wide variety of people. Some of their prominent followers included those who weren’t serious about cryptocurrency but wanted to be a part of it, those who liked dogs, and those who wanted to make fun of cryptocurrency. Plus, it had the backing of giant social media forums, like Reddit, to support the growth of Dogecoin.
However, Dogecoin went through challenges. In fact, in the same month that the cryptocurrency was released, the wallet was hacked, and millions of Dogecoins were stolen. Thankfully, due to the Dogecoins Reddit community, they were able to fundraise money to replace the cost of the stolen coins. Through the power of donations, Dogecoin was also able to train assistance dogs for autistic children and send clean water to Kenya.
Through the ups and downs of the cryptocurrency market, including a horrible crash in 2018, Dogecoin has still been standing while other currencies had to shut down. In fact, Dogecoin has consistently grown since that point, reaching new heights in 2022.
Why is Dogecoin So Popular?
The value of Dogecoin has suddenly grown in 2022 after years of almost no growth. This is due to a ton of public support. Famous figures have increasingly shown their support for this cryptocurrency, including Mark Cuban and Elon Musk. The public endorsements, combined with social media posts on TikTok and Instagram, have driven people to purchase Dogecoin simply because there is hype around it. There’s even Dogecoin subreddit with more than 1.5 million subscribers dedicated to talking about everything related to cryptocurrency.
What is Dogecoin Used For?
Many holders of the popular cryptocurrency are waiting for it to reach the $1 mark. However, before you jump on board to wait for this growth, there are a few things you need to consider. While Dogecoin does have the support of rich people along with a huge fanbase, it’s still not as inviting as other cryptocurrencies like Etherum and Bitcoin because it does not have any real purpose.
Unlike other cryptocurrencies, like Bitcoin, which allows you to use the cryptocurrency to purchase a wide variety of items, there is very little you can actually do with Dogecoin. The top cryptocurrency websites don’t even trade the coin just yet. One of the few places you can spend your Dogecoins includes the Kessler Collection resorts, and AirBaltic the Latvian airline. While it might be fun to purchase and hold, it’s important to note how little you can do with your Dogecoin investment.
What is Dogecoin Worth?
Unlike other cryptocurrencies, Dogecoin is not yielding a huge pay-off for its many investors. Dogecoin is current at .49 cents with a market cap of over $10,000,000,000. While that number may seem impressive, it doesn’t compare to Bitcoin’s market cap, which is more than 80 times the size of Dogecoin.
Dogecoin has endured massive fluctuation, as most cryptocurrency does, with it selling for less than .01 cents in January of 2021 and hitting a high in May 2021 of .55 cents. That means if you invested $1,000 in January of 2022, you could have made up to $55,000 in May from your investment.
Will Dogecoin Make Me Rich?
Dogecoin is volatile and should be purchased with caution. It won’t necessarily make you rich to invest in this cryptocurrency because it can crash at any moment. However, tons of people are very excited about Dogecoin, with many posting social media updates and purchasing more coins every day.
The energy around the coin tends to drive up its price, especially with the extra endorsement from Elon Musk. While the coin has been consistently increasing in value, that doesn’t mean it will have a lasting future, especially since there is no actual practical use for the cryptocurrency. Plus, there are 128 billion Dogecoins in circulation, with no cap being placed on it, unlike other cryptocurrencies.
Is Dogecoin a Good Investment?
This decision to buy Dogecoin and whether or not it’s a good investment is up to your discretion. Before making any big purchases, make sure to talk with a professional investor or conduct your own research to ensure this is a good decision for you and your financial goals.
Just like the decision to purchase any cryptocurrency available on the market, Dogecoin is a speculative purchase. The prices fall and rise dramatically, which can be challenging to deal with, especially if you’ve invested a significant amount of money. While it’s possible that the cryptocurrency could rise even higher in value, it’s also possible that it could drop dramatically in value.
Make sure only to invest money that you would be comfortable losing. If you’re not already investing in an emergency fund or 401k account, it might be wise to put the money you intended for Dogecoin into something more reliable.
Is It Easy To Buy Dogecoin?
While most cryptocurrencies are easy to buy, like Etherum, Litecoin, and Bitcoin, that is quite the opposite reality for Dogecoin. Many popular cryptocurrency exchanges, like BlockFi or Coinbase, do not offer Dogecoin as a cryptocurrency you can purchase.
If you’re serious about purchasing Dogecoin, you’ll want to ensure you have a wallet so you can buy the cryptocurrency securely without having to keep it on an exchange, as exchanges are known to be prone to hackers. Your wallet can typically be stored on mobile apps or browsers and is released with a password to keep prying eyes away from your investment.
Once you have your wallet created, you’ll need to be logged into a cryptocurrency exchange and use one of the following methods to purchase your Dogecoin.
- Cryptocurrency: If you already own cryptocurrency, you can trade it with others who hold the cryptocurrency you are looking to purchase. For example, if you have Litecoin and want Dogecoin, you could find another trader to make the swap happen. This is an excellent solution if you’re trying to avoid fees, as you’ll typically spend less than 1% per transaction. This option may be too overwhelming or complex for new traders and should be avoided if you’re uncomfortable with the process.
- Bank Transfer: While you can purchase cryptocurrency by initiating a bank transfer, the process can be excruciatingly long. Most times, it will take up to 3 days for your transaction to process. The downside of this method is that you can’t control how the market will fluctuate within those days, which can impact the value of your investment.
- Credit Card: Buying with a credit card is the fastest and easiest way to obtain cryptocurrency. While the fees are higher and will require you to incur a flat fee and a 3% processing fee, this method makes the most sense for most buyers.
Final Notes on Dogecoin
It’s impossible to predict what the value of Dogecoin will look like in the future, as is the truth with any cryptocurrency you purchase. It’s possible that the prices will continue to rise because of its dedicated following or could fall dramatically as people lost interest. It’s a fair assumption that Dogecoin may never be worth thousands of dollars, like Ethereum or Bitcoin, because of the unlimited supply available of it.
If you’re looking for an inexpensive, fun way to invest in cryptocurrency and want to be part of the “To The Moon” trend, you can purchase Dogecoin. Ensure that you feel comfortable if that money was to disappear as the future value of Dogecoin could change at any moment.
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