Dogecoin: A joke that got out of hand
If you are a crypto enthusiast or at least someone who is even slightly interested in cryptocurrencies, you should have heard about Dogecoin. And who hasn't? The most famous meme coin in the world (and the first “dog coin” which gave rise to a whole series of epigones), Dogecoin is a real-life example that, with enough resources and imagination, one can create a crypto with a cult following based on anything!
What is Dogecoin, how was it created, and what’s up with all the hype around it? Let's figure it out.
Some (boring) facts about a non-boring crypto
Dogecoin is a meme coin, so talking about it in the language of dry facts would be meme blasphemy. That is why we will keep this part short. Here are the main points you need to know about Dogecoin (otherwise referred to as DOGE):
- Dogecoin is an open-source, peer-to-peer cryptocurrency.
- Dogecoin was created in 2013 on the basis of Litecoin.
- Dogecoin uses a proof-of-work consensus mechanism and a scrypt algorithm.
- Dogecoin has no upper supply limit, meaning new coins can be created indefinitely.
- As of this writing (March 14, 2023), Dogecoin has a price of $0.073 and a market capitalization of $9.6 billion, ranking ninth in the list of top cryptocurrencies by market cap.
That’s about it. Now, let's get to the interesting part – the history of how it all began.
How Dogecoin started
Unless this is your first time on the Internet, you've heard of memes. The very creation of Dogecoin was intended to be a meme. However, as we can see by looking at DOGE's market cap, this joke has definitely gotten out of hand.
Dogecoin was created in 2013 by Billy Marcus and Jackson Palmer. The decision to invent and launch a whole Shiba-Inu-based payment system as a “joke” came to them as a reactionary response to the influx of cryptocurrencies appearing at a ridiculous pace in those years. By creating the concept of Dogecoin, Marcus and Palmer made fun of this situation.
However, what started as satire quickly became the real deal when DOGE began to receive positive feedback all over the Internet, and a loyal community formed around this meme coin. Emboldened by success, Marcus and Palmer took the matter seriously and developed what was a concept into an actual crypto coin with a code indirectly based on Litecoin.
And just like that, Dogecoin began its triumphant march through the cryptocurrency world. The extraordinary concept and flair of irony surrounding this coin attracted a very specific category of fans: people who wanted to be a part of the crypto community while refusing to take it too seriously.
And as the following years showed, this group included not only young Reddit regulars but also world-famous billionaires...
Endorsement by Elon Musk
During the history of its existence, Dogecoin, like other cryptocurrencies, has experienced both sharp falls and triumphant rises. However, its growth has never been as intense and rapid as when Elon Musk, one of the richest people on the planet, began to actively promote DOGE on his socials.
It all started in 2019 when Musk first talked about DOGE. In his tweet, he mentioned that Dogecoin was his favorite cryptocurrency, which triggered the coin's rapid growth. Since then, Elon Musk has repeatedly tweeted various Dogecoin memes, each time adding to the popularity of this cryptocurrency.
In February 2022, Musk gave an interview in which he made it clear that his support was driven more by ironic motives than by rational logic, claiming that it would be exciting if Dogecoin eventually became the dominant currency of the future. However, despite the billionaire's motivation, the fact remains: his continued support is one of the main factors keeping DOGE afloat.
Musk’s support didn’t end with just memes on Twitter and witty interviews. In the first half of 2022, he put his money where his mouth was and allowed customers of Tesla and SpaceX to purchase merch and some other categories of goods on these companies’ websites with Dogecoins. In addition, there are rumors that Musk is one of the largest DOGE holders in the world; however, this is all just speculation at this point.
Is Dogecoin worth buying?
With all these meme aspects surrounding Dogecoin, many may wonder if this crypto is even worth buying. However, the factors that make people doubt DOGE are the same as those related to any other crypto: no intrinsic value, price depending solely on the laws of supply and demand, and high volatility. So, despite being meme-based, Dogecoin is not so different from other coins.
Some critics also point out that, unlike many other cryptos, DOGE has no purpose, development capacity, or role in the creation of new iterations of the Internet. In their opinion, this makes Dogecoin a less stable cryptocurrency. However, one should remember that not all cryptos have utility; some of them are used purely as a means of payment. In this regard, Dogecoin is already ahead of many competitors because it is used for payment in at least two global companies, Tesla and SpaceX.
Of course, this does not mean that investing in DOGE is risk-free. As with any other coin, market turbulence can push Dogecoin to new heights or reduce its price to record lows with equal probability. Therefore, if you want to invest in DOGE, you should use all necessary means of risk management : do not risk a larger sum than you can afford, set opening and closing thresholds, monitor the price dynamics of the coin, etc.
Despite its beginnings as a meme, Dogecoin quickly grew from this status to a full-fledged cryptocurrency no worse than others. Besides, it gave rise to a whole different category of cryptocurrencies, becoming the first and most famous meme coin. Today, DOGE is allowed as a means of payment by many platforms, including such giants as SpaceX and Tesla.
Although DOGE's current price is significantly lower than its all-time high, a devoted fanbase and regular endorsements from Elon Musk continue to keep the coin afloat. If you want to try exploring the potential of the world's most famous meme token, you can buy Dogecoin on our platform in no time!
Disclaimer: Our content does not constitute financial advice. It is only intended for informational and educational purposes.
please put the link to the Risk Management blog article when we'll have it on the website (at the moment, it has not yet been published) [OK1]