- What is dogecoin and how does it work?
- Why does it have value and why should you trade Dogecoin?
- TradeOr adds Dogecoin to its expanding portfolio of cryptocurrencies.
Imagine you execute a joke so successfully that it becomes a worldwide sensation and the hottest crypto around! Dogecoin is a new phenomenon that saw creators inventing a new crypto coin inspired by Shiba Inu meme dog. So how has it become one of the hottest coins around? How can you benefit from its popularity and how can you trade the cool DOGE? Read on.
What is Dogecoin?
DOGE is a crypto coin that was invented in 2013 by Billy Markus and Jackson Palmer. The two software engineers wanted to satirize the growth of altcoins and thought making the doge internet meme into a cryptocurrency would do the trick! What was considered a joke kept growing in demand and due to the high supply of Doge coins and the low price it kept becoming the online sensation it is today. It is now considered to be the fifth most valuable cryptocurrency on the market as it has now increased by an outstanding 6000% in 2021.
It is quite funny to note that the original creator, Markus, sold all his dogecoin in 2015 when he became unexpectedly unemployed. He most definitely is not benefiting from the coin’s recent success, having spent the money from the coins to buy a Honda Civic.
How Does DOGE work?
DOGE, as with most cryptos, runs on blockchain technology similar to Bitcoin and Ethereum. IT works in a similar way to Bitcoin. Holders have the exact same copy of the Dogecoin blockchain ledger. Like Bitcoin, miners solve complex mathematical equations to process transactions, earning additional Dogecoin for their work.
The coin is derived from Luckycoin. Luckycoin forked from Litecoin and it uses a Scrypt algorithm. Those who use it also benefit from mere 1-minute block intervals, making it one of the fastest blockchains on the market.
So how can you use this cryptocurrency? It can be used to pay for and purchase goods and services. However, do bear in mind that it is not an efficient store of value given its supply has not been capped (more on that later).
Why DOGE has value
So why has this coin gained so much in popularity? It is safe to say that this coin, considered now one of the hottest and quirkiest cryptos worldwide. Gaining a cult following on Reddit definitely helped! When a popular group decided to help Dogecoin’s value reach ‘the moon’, the coin skyrocketed over 600% following this.
Having famous supporter always works as well. Elon Musk is one of the most famous supporters of this crypto and has influenced its success in the past. In April 2021, Musk tweeted Joan Miro’s iconic ‘Dog Barking at the Moon’ painting with the headline ‘Doge barking at the moon’. This sent the coin literally in the stratosphere, making waves on the charts.
This is a phenomenon that is quite similar to what happened with Game Stop earlier this year. While people investing in it may not specifically think the coin has value, they are hoping that if everyone invests in the crypto then its value will keep climbing and it definitely seems to be the case for the moment.