Dogecoin, identified with the world’s second richest businessman, Elon Musk, was founded on a joke in 2013. His debut was more of a joke than a necessity. The “shiba inu” dog in its logo is also a reflection of it. This quirky-looking dog was already a famous ‘meme’ on the internet, now the logo of one of the world’s most popular cryptocurrencies.
Its founders are Billy Markus, one of IBM’s software engineers, and Adobe’s software engineers. Jackson Palmerwas. The two would later part ways in 2015, with Markus even blocking Palmer from Twitter. When Markus sold his shares in 2015, his shares were worth enough to buy a used car at the time.
Aiming to build a fun and traditional banking fee-free payment system, the duo introduced their “joke coins” on December 6, 2013. Dogecoin had enthusiasts in the internet world, but the coin had its real boom in 2021. By the end of January 2021, it had increased its trading volume to over $5 billion. However, it still lacks many features to indicate that it can be a dominant cryptocurrency or savings tool. There are some reasons why Dogecoin is still not mainstream.
One of the most important of these is the supply of Dogecoin. There is no limitation on the supply of the crypto asset. 14 million Dogecoins are mined in one day, which has an inflationary effect on the asset value of the coin. In contrast, Bitcoin has a maximum supply limit of 21 million. This is enough to define Bitcoin as rare. Dogecoin is used for transactions such as payments and purchases, but is not considered a very effective store of value.
THE ADVANTAGE OF PROCESSING SPEED
Compared to other crypto assets like BTC, Dogecoin remains relatively low against the dollar. In addition, Dogecoin does not allow fractional transactions like BTC.
Dogecoin is expressed as a cryptocurrency that can be used more in shopping due to its advantages such as transaction speed. In fact, it is known that some NBA teams in the USA have opened ticket offices in the stadiums that receive payments with Dogecoin.
So, due to Dogecoin’s low unit price, popularity and transaction speed, DOGE seems more suitable as a trading asset than Bitcoin. The technical nature of the joke coin puts it significantly ahead of Bitcoin, especially in terms of transaction speed. While each block in Bitcoin’s blockchain is 10 minutes, in Dogecoin it is 1 minute. That is, while each block on Dogecoin and Bitcoin’s respective blockchains is one megabyte in size, Dogecoin’s blockchain produces more blocks in the same amount of time.
Elon Musk tweeted this image in February 2021 and showed his support for Dogecoin. Photo: Twitter
PRICE HISTORY
The crypto-asset has generally traded below $0.01 since 2013. In January 2021, it briefly rose to $0.01. In May 2021, the price of Dogecoin traded close to $0.74. This dramatic price increase was largely supported by the excitement for the coin.
In 2020, a group of users on TikTok was showing great interest in Dogecoin. He was buying the coin, hoping the crypto asset would rise, and had discussions on the internet about it. A group called WallStreetBets, founded on Reddit, had a serious impact on the joke coin in 2021. This group was also previously known for its impact on Gamestop’s stock market value. Someone in the group tweeted about whether Dogecoin had ever hit the $1 level before, and Dogecoin suddenly went up to 0.7.
But the coin experienced its real boom with Elon Musk’s tweet. The whole world recognized the coin when Musk started tweeting support for Dogecoin in 2021, Dogecoin’s market cap rises by $10 billion after a tweet by Musk. It is not yet known exactly why Musk supports Dogecoin.
The support people give to this joke coin is described as FOMO, that is, “Fear of Missing Out”. People are showing interest in Dogecoin because of the desire to experience the experiences of those who bought Bitcoin early.
Dogecoin is trading at $0.07 as of July 16, 2023. There are 138 billion Dogecoins on the market.
Source: Cointelegraph, Forbes
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