Dogecoin began as a joke. However, it has grown to become one of the most popular online currencies.
Many Dogecoin or DOGE fans buy and hold it until they can sell it at a huge profit.
But is that all? Is becoming rich with Dogecoin that simple?
You are about to find out.
History of Dogecoin
Bitcoin, the first cryptocurrency, was open source. Everyone was free to copy it—and people did. Clones like Peercoin and Litecoin popped up all over.
Dogecoin was created in 2013 by Jackson Palmer and Billy Markus. It is a copy of Litecoin which is very similar to Bitcoin.
People always refer to Dogecoin using silly language relating to the moon and dogs. (The coin features the Shiba Inu dog).
From the beginning, Dogecoin gained a devoted fanbase. Its fans are mainly people who like dogs and those who want to participate in crypto trading without being serious about it.
Most people don’t get it. One of Dogecoin founders, Palmer, even washed his hands. He said that the cryptocurrency market is overheated and that the crazy rise of Dogecoin was a clear indication of that. The Crypto market crashed several days after that statement.
Dogecoin, however, survived.
Is Dogecoin Technically Sound?
Not exactly. Dogecoin copied Litecoin which is technically sound.
One user can send and receive DOGE in a permissionless way on the cryptographically protected network.
It works but it is not as decentralized or as secure as Bitcoin—not even close.
Dogecoin is not innovative, it has never been from the beginning. Its block time may be shorter than Litecoin’s and its supply unlimited, unlike Bitcoin; but Dogecoin is not regularly updated. Sometimes it takes years for a new version to be launched.
Dogecoin is like Bitcoin’s carefree and silly cousin.
Elon Musk Loves Dogecoin
Elon Musk is a fan of silly stuff. So, his love for Dogecoin doesn’t come as a surprise. He tweets about the cryptocurrency occasionally on Twitter—which causes the price to rise dramatically.
In an interview, Musk said that it would be ironic and entertaining to see Dogecoin become Earth’s currency in the future.
But Musk seems to prefer Bitcoin when it comes to business. Tesla bought about $1.5 billion worth of Bitcoin recently.
Other celebrities like Gene Simmons and Snoop Dog have also endorsed Dogecoin.
Should You Buy Dogecoin? If Yes, How Do You Buy It?
Most major exchanges like Binance support Dogecoin.
DOGE works like any other online currency. You can transfer the coins to your wallet or keep them on the exchange.
Will Dogecoin Get to $1?
Dogecoin may have the support of rich celebrities and a dedicated fanbase but it is not technically interesting.
In a year, the price of Dogecoin has risen 13000% and its market cap is currently at $34.5 billion. Proponents seem positive that the coin will hit $1 one day. It is not impossible, but you also do not know how far the joke can go.
Tread carefully, especially if you are not a seasoned trader.