Many followers constantly ask, “what is Dogecoin?” Of course, considering this coin as the #1 story in Crypto’s news on many occasions because of Elon Musk’s tweets. Therefore, in today’s article, we will capture all significant discussion points, recognizing Dogecoin’s history and identifying its strengths and weaknesses as well.
But first, you should know that Dogecoin is one of the cryptocurrencies, which achieved remarkable success since 2013 – the Dogecoin creation year. The digital currency price has risen dramatically. Yet, many investors still ask, “is it safe to buy Dogecoin and trade immediately?” Read the following article carefully to get accurate answers to all your questions.
What Is Dogecoin?
Dogecoin is a cryptocurrency “basically means digital money” that actually emerged as a type of meme currency. In 2013, the inventors’ Billy Markus and Jackson Palmer introduced the coin as a parody.
At the time, Markus was working for IBM, while Palmer was employed at Adobe Systems. The two developers probably did not expect that Dogecoin would one day become a serious cryptocurrency. The Dogecoin community, for example, has grown significantly. Dogecoin itself is now widely used as a kind of tip for social media users who contribute interesting content on various platforms.
That makes Dogecoin popular on Reddit and Twitter. The currency is also often used to raise money for charitable purposes. That happened when a well in the Tana River Delta was built to supply the people of Kenya with fresh and pure water.
Dogecoin Price Escalation
The current Dogecoin price is $0.306421 (as of 22.08.2021) with a 24-hour trading volume, reaching $2,115,023,235. Dogecoin price rose by 2.12% during the beginning of 2021. Regarding the market capitalization ranking, Dogecoin is considered one of the top eight cryptocurrencies, with a Fully Diluted Market Cap of $40,366,142,467. There are currently 130.98B Dogecoin on the stock market.
On May 05 this year, the Dogecoin price experienced an increase of more than 12,000 percent. On May 08, the Dogecoin price attained its all-time high at $0.600512. As is usual with cryptocurrencies, there were always violent fluctuations. With a market capitalization of more than $32.5 billion (as of May 31, 2021), Dogecoin is currently enjoying relative economic stability behind Ripple currency (XRP).
How Does Dogecoin Mining Work?
What is Dogecoin? We have the answer by now, but it is not yet a complete answer. And it is time to recognize the coin mining process. Similar to gold, cryptocurrencies are created through mining processes. The difference, however, is that cryptocurrency mining takes place digitally. In crypto mining, the prospectors, also known as miners, receive a reward.
Miners can mine Dogecoin either alone or in a mining pool. The technology behind Dogecoin is comparable to that of Litecoin. Both are based on the Proof-of-Work (PoW) algorithm.
This ensures that users validate incoming transactions within the blockchain before the payment is added to the network. For validation, the participating miners solve a relatively demanding arithmetic problem. As a reward, the miner, who succeeds first, receives a share of Dogecoin.
Dogecoin & Reddit Discussion Forum
Dogecoin has a fan community exclusively on Reddit. Reddit is one of the most visited websites on the Internet, and it is often referred to as the “front page of the Internet.” Registered users can post content on Reddit. The forums are called subreddits. Dogecoin has its own subreddit on Reddit, and it’s called: r/dogecoin.
Over two million users follow Dogecoin on Reddit. The platform has recently attracted much attention because Reddit users are always interested in stock and cryptocurrency trades.
The Dogecoin’s Engineer – Elon Musk!
What is Dogecoin? How is Dogecoin mined? Yes, we provided an actual answer that clarified the coin’s nature and its mining procedures. But, it is time to introduce Elon Musk, who is considered “the currency inventor??”
He actually has a strong influence on the coin price through his comments and tweets – for example, when he appeared on the US entertainment program “Saturday Night,” he was asked about Dogecoin. He initially replied: “It is the future of the cryptocurrency field. It is an unstoppable financial vehicle that is going to conquer the world.”
His last statement has galvanized enthusiasm to such an extent that an unknown trader hurried to buy 36.7 billion Dogecoins – 28% of total Dogecoins balance. Elon’s statements were not confined to the official mass media. They extended to include cryptocurrencies organizations and associations until he became the key reference for all users and traders.
Whatever Elon Musk says about Dogecoin, it makes a massive fuss. He is also the only one responsible for developing the coin. The Decrypt platform always gives the development team valuable tips on enhancing Dogecoin’s new features. The question that arises between everyone now does this is considered market manipulation?
How To Buy Dogecoin & Set Up A Wallet?
Because of excessive demand, more and more crypto platforms are gradually adding Dogecoin currency to their portfolio. If you want to buy Dogecoin, you need a Dogecoin wallet, i.e., a digital wallet that can store your money.
One of the most straightforward Dogecoin wallets is that of the currency official website. Click on the “Create Wallet” link that you can find on the top left corner of your screen. Enter your email address and a strong password. You should remember your password as it is your access key.
An alternative method is buying Dogecoin assets through an online broker. For example, eToro has offered Dogecoin trading, while Binance and Kraken allow you to buy and exchange. You should realize that when you buy Dogecoin at eToro, you will not charge any fees. You only pay the spread – the difference between the buying and selling price.
Dogecoin Price – Rise & Fall Outlook
Frankly, we should state that Dogecoin’s digital currency seems relatively unstable as a long-term investment – especially because miners can generate an infinite number that may make false transactions.
Additionally, almost half of the Dogecoin currently in circulation is in possession of 13 users. That is around 60 billion coins, as the “Dogecoin Rich List” showed. If only one user had sold his Dogecoin, this would significantly impact the total stock price.
Basically, it is highly speculative to buy Dogecoin. As seen in 2021, sharp price movements are not only triggered by Elon Musk’s tweets on Twitter. There are also many rumors: One of them claimed that Amazon would integrate Dogecoin as a payment means. After all, a petition has been running under the “Doge4Amazon” rumor.
The case lasted four years; more than 230,000 participants have already voted for the integration. However, the case did not exceed cyberspace – it remains just pure speculation.
Investing in stocks, cryptocurrencies, and other Initial Coin Offerings (“ICOs”) is highly risky and speculative. This article is not a recommendation by iCryptoApe or the writer to invest in stocks, cryptocurrencies, or other ICOs. Because each person or individual’s circumstances are unique, therefore, a qualified professional and/or a financial advisor should always be consulted before making any financial decisions and/or trading or buying stocks, cryptocurrencies, or other ICOs. iCryptoApe makes no representations or guarantees as to the accuracy or timeliness of the information included within.
