Dogecoin: What You Should Know About the Cryptocurrency That Started as a Meme
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Anyone that doesn’t have an interest in cryptocurrency might think that there is only Bitcoin and possibly a handful of other currencies available in the world of digital currency. However, in fact, there are thousands of different cryptocurrencies out there, of which Dogecoin is just one.
Dogecoin first gained people’s attention when it was launched as a joke, inspired by a popular meme of a dog that had been doing the rounds at the time. However, since then it has become a much-loved and successful digital token. Although the value of cryptocurrency always changes, it is widely regarded as the 6th most valuable cryptocurrency – an increase in value by more than 1400% at its peak, according to records by CoinMarketCap.
If you’re considering investing in any sort of digital currency, including Dogecoin, it's important to research as much as possible and ensure that you know everything to make an informed decision on the right type of investment for you.
With all the hype surrounding Dogecoin, you might be asking yourself: Is it too late to buy Dogecoin? To make life a little easier, here are some things about Dogecoin that are essential to know before you consider an investment.
What Exactly is Dogecoin?
Software engineers Billy Marcus and Jackson Palmer created Dogecoin in 2013. The idea behind it was to make fun of Bitcoin and other cryptocurrencies that were starting to become really popular at the time.
The digital currency features the ‘Shiba Inu’ dog – a viral meme that was popular around the same time – all meant as a joke. Billy Marcus has talked about the joke meme in several interviews, admitting it was created in just a few hours with no real serious thought behind it. No one could have predicted it would still be popular 8 years later, especially Marcus who sold all of his holdings back in 2015.
Is Elon Musk Involved in Dogecoin?
Elon Musk is generally reluctant to talk about his own financial activities and investments and Dogecoin is certainly no exception. That said, although he has never admitted to owning any, most people are certain that he has some sort of vested interest. Even as far back as spring 2019, he was tweeting about the coin, proclaiming it to be his favourite cryptocurrency.
He does tweet about other digital currencies, recently he sent a tweet about Floki which caused the value of the cryptocurrency to rocket overnight. However, Dogecoin is one that he has mentioned several times, leading people to believe he has an interest in this cryptocurrency as well.
Is It Different To Bitcoin?
Although they’re both considered cryptocurrency, each type of digital currency is different; which is why some people invest in Dogecoin and others feel that Bitcoin is more appropriate. The biggest difference between Bitcoin and Dogecoin is that there are unlimited amounts of the meme-inspired currency, whereas Bitcoin is thought to be capped at 21 million.
Experts say that this means the two currencies will have different behaviours, with Bitcoin expected to behave more like other assets such as gold that also have a limited supply. With Dogecoin having no such cap it does mean that it could behave differently and perhaps more unpredictably.
When talking about the creation of the coin, Marcus talked about wanting to create a crypto that allowed for faster transactions, so they never gave thought to whether there should be a cap on how many exist.
How Much is Dogecoin Worth?
The exact value of Dogecoin changes constantly, much like every other cryptocurrency that is out there.
Generally speaking, it is worth what someone is willing to pay for it, however, it does go up and down in value depending on how popular it is and whether there has been news related to the currency announced etc.
Currently, there aren’t many businesses that will accept Dogecoin as a method of payment, so its value is completely determined by what the market is doing.
Can I Buy Dogecoin?
Although buying cryptocurrency isn’t generally hard, it can be slightly more involved to buy digital currency such as Dogecoin, which isn’t listed as widely in places like Bitcoin and Ethereum is.
However, that doesn’t mean that you should be put off, buying it shouldn’t be a stress at all. Simply look for any trading app that allows you to buy, sell and trade DOGE and you’ll be able to get started. There are also some coin apps that allow you to pay for Dogecoin with other cryptocurrencies – so for example, if you do already own Ethereum you can use this as the method of payment for Dogecoin.
Should I Buy Dogecoin?
It's very difficult to predict when demand for cryptocurrency will subside. However some analysts say that digital currency, in general, is on the up and as such, it definitely isn’t too late to buy.
Much like any other financial investment you wish to make, it is important to do your own research and make sure you know what you are getting into. There are plenty of people that have done well from investments in digital currency like Dogecoin, however this is never guaranteed as there are people that have lost money too.
With any investment of this nature, the general rule is to never invest more than you can afford to lose. If you are going to invest then make sure you use an app that allows you to track the value of your investment and that you keep an eye on any industry news surrounding your chosen cryptocurrency so you can be in the best possible position to make sensible and timely decisions when it comes to what to do with your investment.