Dogecoin: A meme Currency

Date:

Share post:

Dogecoin is a digital currency that was created in 2013 by two software engineers Billy Marcus and Jackson Palmer. The purpose of introducing was just to make fun out of the wild speculation in digital currencies. But investors saw the legitimate potential to make more significant profits out of it despite the satirical intentions behind its launch. 

Dogecoin is among the earliest Altcoins. While the parody cryptocurrency has no ambitions to position itself as a disruptor of the existing financial system, investors hope that it will touch the mark of $1 as the Dogecoin trading started to attract mainstream attention. 

Reason Behind Dogecoin’s Price keeps Shooting Up

  •  prices have soared in 2021 for several reasons. However, a major reason is the increasingly positive sentiment of the digital currency industry, and, in turn, prices of coins have increased. It’s not only Dogecoin; it’s the entire crypto market. Exchange Coinbase bagged the valuation of $85 billion in its stock market debut in a significant move. 
  • Venmo, which PayPal owns, made the announcement that over 70 million of its customers can trade Bitcoin, Litecoin, Ethereum and Bitcoin Cash for just $1. Both mainstream attraction for crypto and institutional adoption of digital currencies can be cited as the reason for the rise in cryptocurrencies and ultimately . Venmo’s entry into the crypto fraternity placed the company among the large institutions that started recognising the value of cryptocurrencies.  
  • Tesla also started accepting payments via Bitcoin for cars. Currently, Tesla is holding some of the cryptocurrency on its balance sheet. 
  • Visa and Mastercard both are planning to foray into the industry by streamlining the crypto markets on their networks. 
  • Now even investment banking companies like Goldman Sachs and Morgan Stanley will reportedly soon offer the opportunity to invest in Bitcoin and other cryptocurrencies to their clients.

Dogecoin Vs Bitcoin

If we look at thetrading through a more conventional lens rather than the perspective and hype of cryptocurrency. The coin does not have many applications in the real world. But investor Mark Cuban announced that his team Dallas Mavericks would soon accept the Dogecoin as a form of payment. But the overall usage is limited as of now. There are several other enthusiasts like airBaltic and Kessler Collection are adopting Dogecoin. 

But Dogecoin trading does not have the potential to lure investors as much as Bitcoin trading has. Investments like tens of billions of dollars of capital expenditures simply are not there for Dogecoin. But the excitement from very young investors tells a different story. It would not be surprising to see this level of attraction in young investors to meme coins or parody currencies after what happened with GameStop. So Dogecoin trading has the potential to perform in future. 

How to Trade Dogecoin?

Traders can buy Dogecoin or obtain exposure to price volatility by trading derivatives such as CFDs. You can trade Dogecoin via exchanges and online brokers. Most traders buy Doge through an exchange, such as Coinbase. This entails purchasing cryptocurrencies using fiat money and holding it in a virtual wallet. 

Coinbase is available in over 40 countries and is one of the world’s most popular exchanges as well as one of the simplest methods to get started with cryptocurrency. While this method is widely used, it is not without hazards, and you should conduct your own study and select a reputable exchange. 

If you misplace your wallet’s access codes, your Dogecoin will be stuck in a wallet that you no longer have access to. Furthermore, there are risks over which you have no control. When you use an exchange, you are relying on it to keep your Doge safe. The issue is that they do not always accomplish this correctly. 

There can be various reasons to trade Dogecoin which are 

  • Significant price movement provides the opportunity for day trading.
  • A user base that is active.
  • Supply-side inflationary dynamics

Will Dogecoin Touch the Mark of One Dollar? 

You can not use traditional factors to evaluate the strength in Dogecoin trading that investors generally use to evaluate ordinary digital currency. There are several traditional factors like blockchain protocols, price action movements or use case, but you cannot use them. Dogecoin is unique, it’s a whole different category. So one has to look at less traditional factors to evaluate Dogecoin.  

Activities on Reddit-Wall street Bets accelerated the recent gains in Dogecoin. 

Most Traders are taking advantage of this and trading Dogecoin under the influence of social media campaigns like #DogeArmy. It’s difficult to judge the potential and performance of future Dogecoin trading through conventional parameters. Most of the young investors are involved in these campaigns and on top of that, Tesla’s founder Elon Musk has another level of influence on these young investors. 

Popular brands like Milky way and Slim Jim rushed to Twitter to become part of the campaign with the goal of sending the “Dogecoin to the moon”. While these campaigns seem irrelevant promotions, they can serve the fluctuation in prices in a big way. One can observe over the years, that the correlation between the mentions on social media and prices of coins.

The crypto industry is still volatile and young, it’s not always possible to make profits from digital currency trading. As of now, Dogecoin is having no supply cap and it also has a weak use case, it could easily go another way. But the other side is that growing positive sentiment around crypto trading as a whole, a community of passionate Dogecoin traders could drive the price of Dogecoin up higher. The coin has made approximately 5000% gains in the past year, it’s safe to say that the Dogecoin would increase more with time.  

So, it can be considered that Dogecoin can touch the mark of one dollar in near future. 

Final Words

The best-performing cryptocurrency was Dogecoin, a cryptocurrency that began as a joke. Jackson Palmer, an Australian entrepreneur and Adobe product manager, founded  in 2013 as a spoof cryptocurrency. It is one of the network’s initial alt-coins. Dogecoin, unlike other cryptocurrencies that have positioned themselves as disruptors of the existing financial environment, has made no such claims. 

The casual appearance suited the spirit of the developing crypto community. Its scrypt algorithm and limitless supply made it an appealing candidate for a speedier, more versatile, and consumer-friendly version of Bitcoin. Dogecoin is built on Litecoin and uses the same proof-of-work technique.

It has a devoted fan base that trades it and uses it as tipping money for social media content.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img

Related articles

Navigating the Legal Landscape: A Guide to Buying Property in Dubai

Dubai's bustling real estate market has long been a magnet for investors seeking lucrative opportunities amidst its towering...

Unlocking the Excitement: Exploring the Phenomenon of Slot Gacor

In the realm of online gambling, one term that has gained significant traction among enthusiasts is "Slot Gacor."...

New Beginnings in Huntsville: Transforming Divorce Challenges into Opportunities

Divorce marks the end of one chapter and the beginning of another. While it undoubtedly comes with its...

Beneath the Surface: Excavation’s Role in Huntsville’s ExpansionGroundbreaking Growth in Huntsville, Alabama

In the heart of Alabama, Huntsville stands as a beacon of growth and development, with its burgeoning industries...