8 Dogecoin

Dogecoin

By Renuka Chintalapati (Infozion Technologies)

Cryptocurrency is a type of electronic money that is produced and stored in the blockchain, with encryption techniques used to monitor the production of monetary units and verify the transfer of funds. It doesn't have a physical form or intrinsic value. Cryptocurrency has developed to become a multibillion-dollar industry. Now it's up to banks and other financial companies to figure out how they'll deal with consumers, investors, and internal voices calling for more institutional investment in blockchain assets. One of the most trending topics in 2021 is Dogecoin.

Dogecoin, the Shiba Inu dog-themed cryptocurrency that began as a joke in 2013, has developed into a serious competitor to the cryptocurrency giant Bitcoin.

What exactly is a Dogecoin?

Dogecoin is a digital coin used for e-transactions that is similar to Bitcoin. The picture of Shiba Inu is depicted on Doge, which is a reference to the ‘doge' meme. It's a cryptocurrency, or digital currency, that, similar to the famous bitcoin, that allows for peer-to-peer transactions over a decentralized network.

Dogecoin's recent rise has been boosted by a social media mania on Reddit involving GameStop, as well as a series of tweets from Tesla CEO Elon Musk and other celebrities.

Since its inception, Doge has been used to donate money to charities. The 2014 Jamaican Bobsled team, which couldn't afford to attend the Sochi Winter Olympics, a Nascar driver named Josh Wise, and a Kenyan clean water initiative called Doge4Water are just a few examples.

The Australian marketer, Palmer joked in 2013 that combined two of the most talked-about subjects on the internet: cryptocurrency and Doge. He bought the domain Dogecoin.com and put a picture of a Shibe on a coin.

Dogecoin will reach $1 by the end of 2021, but with the recent drive, it will be interesting to see how far it can go. Elon Musk pledged on April 1 to send the Dogecoin to the Moon on a SpaceX rocket, and he is rumoured to be planning a bigger impact by establishing a Dogecoin foundation to finance growth. The CEO is often seen tweeting about Dogecoin.

Now let us compare Bitcoin and Dogecoin->

The beginning of Dogecoin and Bitcoin:

Satoshi Nakamoto invented Bitcoin in 2009. Then came the publication of a white paper outlining how Bitcoin could be used to create a modern financial system that would eliminate the need for financial institutions, lowering transaction costs.

Dogecoin started as a joke. "Investing in Dogecoin, pretty sure it's the next big thing," Adobe employee Jackson Palmer tweeted in 2013. Dogecoin didn't exist at the time, and his remark mocked the growing hysteria surrounding Bitcoin.

Ascend and the descend of these two cryptocurrencies:

According to news, Bitcoin and Dogecoin have both been hot investments in the last 12 months, with recent prices that soared by 650 percent and 18,600 percent, respectively. A proposed capital gains tax hike from US President Joe Biden sparked a surge of sale of Bitcoin and other digital currencies a few days ago.

Dogecoin, a digital currency, has also recently plummeted, with its value collapsing by more than 30%. The drop began a day after crypto enthusiasts celebrated April 20 as Doge Day by using hashtags on social media sites to boost the cryptocurrency's price.

The price of these cryptocurrencies at the moment:

The current price of Bitcoin is about $ 53,877.50, with 18.7 million Bitcoins in circulation and a market capitalization of $ 1.1 trillion. The current price of Dogecoin is about $0.3153, and there are nearly 130 billion Dogecoin tokens in circulation, with a market capitalization of $40 billion.

Almost every technocrat, including Jack Dorsey, Mark Cuban, and Elon Musk, is currently promoting Bitcoin. Mike Tyson, a prominent former boxer and social media star, saw the future in Bitcoin much earlier than other celebrities and has been a supporter since 2015. In November 2020, Game of Thrones actress Maisie Williams joined the Bitcoin trend.

Elon Musk and the Dogecoin Social Media craze:

Dogecoin has recently received a lot of support from the Reddit community and Tesla CEO Elon Musk. Other celebrities have now joined this group. Among others who have tweeted about Dogecoin many times are YouTube star and prank influencer Ben Phillips and rapper Lil' Yachty.

Now, what is the future of Dogecoin?

In a recent interview, Elon Musk, Tesla CEO, SpaceX CEO, and Dogecoin supporter claimed that this cryptocurrency might be the future. “There is a strong possibility that crypto is the future currency of the world,” he says in the interview. Then there's the issue of which might emerge out victorious. "It may be several things," he stated. He also said that it would be unwise to invest lifetime savings in cryptocurrency.

The "parody currency" often attracts investors, according to Michael Kamerman, CEO of broker Skilling, due to its popularity on social media and its craze among celebrities.

He said that the resurgence in interest in Dogecoin, which was originally launched as a parody currency, may appear appealing to investors due to its volatility. He also added that people need to heed to scalability and security issues of the currency. This would ensure the intrinsic value of Dogecoin.

It is mainly influenced by headlines, tweets, celebrity, or corporate endorsements, and while “traditional” investors can dismiss this, it is what attracts the masses to cryptocurrencies. The general public understands news, tweets, and endorsements, and as crypto enthusiasts, they would undoubtedly grow to appreciate the movement's more technological details.

Jeff Bezos is rumoured to be joining the cast as a secondary lead after Elon Musk. Dogecoin could reach $1 in under 24 hours if it is adopted by someone like Jeff Bezos. A petition asking Amazon to consider Dogecoin as a payment method has received over 140,000 signatures.

References:

1. Dogecoin Could Be the Future of Cryptocurrency, Says Elon Musk, But Has a Warningwww.news18.com

2. Elon Musk Made a 'Typo' and Twitter Wants You to 'Hodl' Cryptocurrency Dictionary to Decode itwww.news18.com

3. www.pwc.com

4. Jeff Bezos’ Dogecoin backing 'can set' crypto value to $1 ‘in less than 24 hours’ | City & Business | Finance | Express.co.ukwww.express.co.uk

5. How high will dogecoin go? Experts pinpoint future for digital coin performance | City & Business | Finance | Express.co.ukwww.express.co.uk

6. Elon Musk’s meme cryptocurrency Dogecoin is on a rise, can be next Bitcoin - Technology Newswww.indiatoday.in

7. DogeCoin almost hit 70 cents: What's behind the latest surge - CNETwww.cnet.com