I am sure you must be aware of Bitcoin and Rupee coin but do you know what is Dogecoin? The value of our Indian rupees is based on our currency. And bitcoin is based on blockchain that promises to bring a revolutionary change in terms of the monetary system. But do you know that dogecoin is based on memes? Literally, this coin is made in jest. Someone took this doge meme and this meme is quite famous at some point. It became a coin now around the world.
The meme can be made with anything, not only a dog. Any person can develop their own coin because cryptocurrency is so decentralized.
They just need some basic coding knowledge. But the thing is that this Dogecoin became so famous that people like Elon Musk started buying and promoting it. Why did it happen? Let’s see all about this new cryptocurrency in this post.
Disadvantages of Bitcoin.
After the popularity of Bitcoin, many people have seen its disadvantages. Like the long transaction time of Bitcoin. Or the whole process of Bitcoin consumes a lot of energy. This is not good for our environment at all. This is the reason that some people thought to make their own coins. These coins are called Alt-Coins and it means alternative coins. Because they are the alternative to bitcoins. And they try to counter the disadvantages of Bitcoin by some other method.
After alt-coins have been made, people realized that anyone can create their own coins. Some people created their own coins for fun purposes. There were no benefits in their coins as compared to bitcoins. They simply created a new coin and changed its name. There were some scammers who created their own coin as well. They fooled people to invest their money. This is also called the pump and dump scheme.
Also, read How Cryptocurrency Works?
These coins were created for no reason they are also known as shitcoins. They are not bringing any improvement in the process. That’s why it is called shitcoins. Some people consider that dogecoin is a shitcoin. The only difference is that the purpose of creating dogecoin was not to scam people. It was only to prank the people.
Birth of Dogecoin
In 2013 this doge meme was on the rise in its popularity. Billy Markus a software developer and Jackson Palmer, an Australian marketer, at IBM, created this dogecoin. Palmer said that he came up with an idea as a joke to combine the 2 popular trending topics on the internet. Cryptocurrency and doge meme and the code of dogecoin are based on Litecoin. Litecoin is an alt-coin that has a few benefits over Bitcoin.
Advantages like less processing time and fewer transaction fees. It is truly surprising that the market valuation of dogecoin has surpassed that of Litecoin. If you see the largest cryptocurrencies in the world then Dogecoin is the 4th largest cryptocurrency after Bitcoin, Ethereum, and Binance.
Also, read How to be Financially Independent in India?
Why is Dogecoin so popular?
How did a coin made as a joke gain such popularity in the world? Why people are buying it? The first reason is the Reddit website the folks on Reddit started using it as a meme. Whenever someone likes or comments on Reddit, then people would award them some Dogecoins as a tip. It is also known as the DogeBot tip. Usually, this was a tip of 5 Dogecoins and at that time 1 Dogecoin was equal to 0.0002 cents. It was a very little amount at that time.
Using Dogecoin as a tip started attaining popularity on Reddit. And this thing expanded over the years. Dogecoins were used so much and that exchanged so many times that their value started increasing rapidly. In Sep 2018 the CEO of Tesla Elon musk noticed it. Elon met Jackson Palmer on the problem of Twitter spambots. The fake Twitter accounts to scam people using the guise of cryptocurrency. Elon musk wanted to take them down. Because his name was used to run this scam. So he asked Jackson Palmer to support on this issue.
Elon Musk on Dogecoin.
That was the time that Elon Musk came to know about Dogecoin. After 7 months. Elon Musk tweeted that Dogecoin will be my favorite cryptocurrency. In March 2020 Elon tweeted “Dogs rock, they are the most promising coins. So in the coming month and year, he tweeted about Dogecoin so many times. Indirectly he was promoting Dogecoin. Elon Musk is one of the most richest and famous men. Whenever he used a tweet, the value of Dogecoin would increase by 25%-50%.
In 2021 the value of Dogecoin exceeded more than 50 cents. At its peak, Dogecoin had almost reached a valuation of $80 billion. Although its price has fallen a bit in a couple of months. The supporter of this wants to make the value of 1$ of 1 Dogecoin.
How to buy Dogecoin?
It is the same process as buying any other cryptocurrency. You just need a cryptocurrency exchange platform to buy any other cryptocurrency. The real-life use of Dogecoin the community of this has donated to several charitable causes. Their first donation was around $30,000 in Dogecoins to a Jamaican Bobsleigh team. After this some water conservation projects in Kenya and for helping some special needs children, the community of Dogecoin has donated money.
And who are the community of this? What do I mean by this? Basically, there is a subreddit on Dogecoin where the users who buy and promote doge-coins come together. They make such donations of Dogecoins. Overall, dogecoin has become a cultural trend now. It is not bringing any significant technological advancement neither it is unique. Only because of its circumstances, the dogecoin has become so popular now.
This is needed to be understood by those people who think if they invest their money in Dogecoin then it will give them 50 times more returns. You need to understand cultural trends grow exponentially and die down after the peak. There is a high chance that it may happen in the future. It is up to you whether you want to buy it or not. I am sure you must have understood what is Dogecoin and how it works.