The success of the popular cryptocurrency- Bitcoin- paved the way for many digital currencies. Since its launch, numerous digital currencies have been introduced to serve a range of applications. While some establish themselves as a form of digital money, others aim to promote decentralized and smart contract advancements. Amongst the stream of cryptocurrencies introduced in recent times, Dogecoin is one of the most promising digital currencies around. It is gaining global recognition and attracting cryptocurrency enthusiasts to its amazing rewards. The idea of Dogecoin initially came up as sort of a joke in 2013, when a programmer named Billy Markus reasoned that the introduction of a lighthearted coin could create more mainstream attention than Bitcoin. The project gained more encouragement when Adobe’s Jackson Palmer contributed ideas and resources to bring it into a reality. Today, Dogecoin is a dominant cryptocurrency in the financial markets with a market capitalization of $52 billion after tripling within 24 hours. Dogecoin’s rapid success and popularity are owed to social media as sites like Reddit, TikTok and Twitter contributed to its global awareness. For example, during mid-2020, an event known as the TikTok pump took place whereby a viral video uploaded to the video-sharing app TikTok created a chain reaction, causing the price of Dogecoin to increase significantly. The idea was to gather as many people as possible to purchase Dogecoin, instructing them that they’d all get rich by the time the price reaches $1. The concept spread causing the price of Doge to rise by 2.5x of its prior price. However, the pump was short-lived and the price dipped in the forthcoming weeks. The most notable contribution to Dogecoin’s soaring popularity is the intervention of Tesla and SpaceX founder –Elon Musk. Elon Musk is an avid and prominent supporter of cryptocurrency as one of his tweets could influence the price of a digital currency. This happened to Dogecoin when he tweeted “Doge Barking at the moon” and shared a photo titled “Dog Barking at the Moon.” Unlike Bitcoin, Dogecoin hasn’t been acknowledged as a mainstream means of exchange and payment. However, it has been utilized in a few niche markets, including tipping artists and making donations. Should I invest in Dogecoin? Dogecoin is a risky and unstable investment because of its high volatility. At the start of 2021, the price surged 400% within a few days but decreased from its peak by one-third a few weeks later. This shows the instability of Dogecoin and how it can undergo swift changes in a matter of hours. Similar to the GameStop saga, Dogecoin has also experienced an unprecedented price increase due to its publicity on social media platforms. Dogecoin is yet to be accepted as a form of payment and until then, it’s not a good long-term option. However, investing on a short-term basis could be profitable because of its volatile and liquid market. Earn free rewards with zero risks. Put your betting skills to test with Fanspel– the first Blockchain-based fantasy sports platform. Join the Fanspel community and Stake your way to the very top! Dogecoin emerged as a joke cryptocurrency mimicking Bitcoin. Since its introduction, it has garnered a lot of interest from cryptocurrency enthusiasts and investors. Dogecoin is preferred for short-term investment basis and not long-term –not until it is accepted as a means of payment.
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