DOGE was developed as a jovial alternative to other cryptocurrencies which has now become seriously valuable!
Below we will try to help you understand what ‘Dogecoin’ (DOGE) is and how exactly it functions.
Dogecoin (DOGE) was developed as a fun alternative to other cryptocurrencies like Bitcoin in 2013. The name as well as Shiba Inu logo design are based upon a meme. Unlike Bitcoin, which was developed to be limited, Dogecoin is purposefully bountiful with 10,000 brand-new coins (DOGE) being mined every minute with no maximum supply.
For the majority of its existence, Dogecoin (DOGE) was typically thought of as an entertaining / funny “MemeCoin” loved and cherished by its Doge Community, yet with fairly little worth. That however greatly changed in 2021 — Since April, Dogecoin turned into one of the worlds top 10 largest cryptocurrencies by market cap, with an overall worth that has incredible surpassed $50-billion USD, although each individual Dogecoin is worth pennies.
Exactly how is that possible? This is due to the fact that there’s a great deal of Dogecoin worldwide. Unlike Bitcoin (BTC), which was created to be scarce as well as resistant to inflation, Dogecoin was developed to be plentiful. There are approximately 130-billion DOGE circulating, and also miners producing an additional 10,000 every single minute. By comparison, there are meant to be 19-million bitcoin, and only 12.5 BTC are mined every 10 minutes.
Having an abundance of DOGE is a crucial part of the concept! Dogecoin (pronounced “Dohj Coin”) was developed as a amusing, low-stakes Bitcoin alternative. As quickly as it was released in late 2013, it started grabbing the attention of an enthusiastic on-line community that have actually utilized DOGE for every little thing, from tipping complete strangers for adding value within Reddit posts, to assisting the Jamaican bobsled team to the 2014 Winter Olympics in Sochi.
What makes Dogecoin valuable?
Like many assets, the marketplace appoints DOGE a value based upon the supply-and-demand. Given the substantial and also ever-growing supply, demand has drastically increased which has clearly helped to drive the values to incredible highs as of recent. (Check out price chart here)
This price hike took place in the initial months of 2021, when prices skyrocketed around 7,000%, driven by retail investors on Reddit (and the WallstreetBets Subreddit that triggered the “MemeStock” CRAZE) working hand-in-hand to drive prices up, the wider crypto boom and also months of relatively amusing tweets by Tesla founder ‘Elon Musk’ emphasised by his TV appearance on Saturday Night Live (SNL) in May 2021.
Fast-rising DOGE prices in 2021 obviously generated significant amounts of media attention along with vast amounts of social media blog posts, which for a while formed a cycle that grabbed the attention of even more investors as well as further amplified prices. Whenever an asset sees such significant gains, Fear Of Missing Out (FOMO) brings waves of fresh investors right into the fold. DOGE continues to be a extremely volatile cryptocurrency. However, like any type of financial investment there is no assurance / guarantee that it will increase in value or for that matter go down in the future too.
Where did Dogecoin originate from?
Dogecoin was released as a joke in late 2013 by software developers ‘Billy Marcus’ along with ‘Jackson Palmer’; close friends from Reddit that had only ever communicated online and never actually met in real-life. They then combined 2 well-known themes in their on-line circle e.g the ever popular cryptocurrency Bitcoin as well as a meme including a ‘Shiba Inu’, matched with a misspelled variation of the word “dog.”.
To its inventors surprise, Dogecoin caught on virtually right away with dogecoin.com, getting more than a million visitors in the very first month. Part of what made Dogecoin amusing is that it was (and still is) a fully fledged cryptocurrency with its very own blockchain and mining system very similar to the one used by Litecoin. Historically low cost pricing (for much of its life you could easilyobtain DOGE for fractions of a penny) and abundance have actually just recently made it extremely appealing for speculators wishing its value will skyrocket}.