Its logo is a popular internet meme. Its name contains a misspelling of one of the most basic words in the English language. Everything about the concept sounds like a joke, and yet in 2021, the cryptocurrency Dogecoin reached a total market value of $34 billion, according to a report by Newsweek. Not only that, Dogecoin but consistently holds a spot among the top-10 digital currencies, boosted in part by endorsements from billionaire businessman Elon Musk (among other influencers).
So how did Dogecoin receive such widespread recognition? Is there something special about this comedic canine currency, or is everybody simply in on the joke? Here, we’ll take a closer look at today’s most popular digital dog.
Origins of Dogecoin
Dogecoin was preceded by the popular internet meme Doge. Between the years 2010 and 2013, a photograph of a curious-looking Shiba Inu gradually went viral, resulting in countless reproductions of the image, often modified to contain short phrases of grammatically incorrect English written in the font Comic Sans.
In 2013, creators Billy Markus and Jackson Palmer used the image of Doge to create their spoof currency, Dogecoin –– meant original to be a parody of Bitcoin. The use of a meme as the currency’s logo served to distance the coin from other cryptocurrencies and their respective communities, which at the time were associated with a culture of gatekeeping and elitism. Ultimately though, the coin’s lighthearted branding helped it to attract a broader demographic.
The Rise of Dogecoin
Once Dogecoin went live, it took off almost immediately. A Reddit forum dedicated to the currency surpassed 19,000 members just two weeks after launch. And a low starting price, easy mining process, and a bit of humor only boosted the currency’s early popularity.
That initial boost was limited though. Dogecoin experienced a second, greater surge of popularity during the COVID-19 pandemic. Support from tech mogul Elon Musk, through Twitter posts and a public appearance on Saturday Night Live, drove the coin’s price to astronomical heights; when musk tweeted a photo of Doge planting a Dogecoin flag on the moon, the currency’s value surged by 20%. Other public figures have also shown their support for Dogecoin, including Kiss Bassist Gene Simmons and rapper Snoop Dogg, to name a few.
Advantages of Dogecoin
Dogecoin was created to be a welcoming currency, and the fees surrounding it reflect that. The average Dogecoin transaction fee amounts to $0.01, which is lower than those associated with most top cryptocurrencies. These low transaction fees make the currency accessible to traders that either have low starting capital or are just starting out and wary of spending recklessly.
Another big advantage Dogecoin offers is its swift transactions, which help crypto traders buy and sell coins at the prices they want. The crypto’s simple mining process meanwhile allows for blocks of DOGE to be developed 2.5 times faster than, say, Litecoin –– another popular cryptocurrency that’s actually built for simplicity. Executing a Dogecoin exchange only requires four confirmations on the blockchain.
How to Buy Dogecoin
Dogecoin is available on many of the world’s most popular cryptocurrency exchanges. To buy Dogecoin, traders must create an account on a cryptocurrency trading platform. After connecting that account to a bank or payment platform, purchasing is simple. You need only put in the number of coins you want to order, confirm the transaction, and see your DOGE make its way into your digital wallet.
Should I Invest in Dogecoin?
Like most other cryptocurrencies, Dogecoin is not backed by any underlying asset, which means its value hinges entirely on how high demand is, and how the public views it. As we explain in our article entitled ‘Pros and Cons of Investing in Cryptocurrency’, there is no governing body that will give you your money back should your coins be compromised –– unlike with fiat currencies or stocks, which are backed by governments and companies respectively.
Additionally, cryptocurrencies in general are still on their way toward mainstream acceptance, and their newcomer nature causes their values to be particularly volatile. However, for many investors, this volatility is also an advantage, as it provides opportunities for high returns from well-timed purchases. Ultimately, the decision of whether or not to invest is up to each individual, and must be considered carefully. If and when you buy Dogecoin, just make sure to invest only what you can afford to lose.
Dogecoin is one of the most interesting cryptocurrencies out there. Though it started out as a joke, this underdog(e) currency swiftly climbed through the ranks with the help of a welcoming community and support from well-known public figures. Now, it appears poised to stick around as a fascinating investment asset for a long time to come.