What is Dogecoin and should you really invest in it?

 

What is Dogecoin?

Dogecoin is a decentralized, peer-to-peer digital currency featuring the doge dog, a popular internet meme, founded by IBM engineer, Billy Markus and Adobe software engineer, Jackson Palmer. It is currently the most frequently-traded digital currency used essentially for online purchases and tips. Dogecoin first emerged in December 2013, as a sarcastic tweet by Jackson Palmer, during the rise of the doge meme’s popularity. After being encouraged by friends to make the Dogecoin joke a reality, Jackson teamed up with programmer Billy Markus, who wanted to create a form of currency more convenient and commercial than Bitcoin.

A little background about the meme

In 2013, a doge meme became famous. It consists of a picture showing a Shiba Inu(dog breed in Japan) face along with multicolored, silly phrases in Comic Sans font and misspelled English! The cryptocurrency was initially started as a joke but now it has gained an enormous amount of followers worldwide. You can know more about this meme here.

Growth Of Dogecoin!

In 2021, Dogecoin reached over 900% as a result of attention from Reddit users and a series of tweets and memes from Elon Musk! Dogecoin became trending after getting involved in a stock market “war” between retail investors and hedge funds.

According to CoinMarketCap Data, Dogecoin is currently trading at ₹5.21, which reveals an almost 17 percent increase in its value.

Difference between Dogecoin and Bitcoin

Under the hood, Bitcoin and Dogecoin look almost the same. Their code varies in only some parameters. But their economic functions are almost opposite.

The key difference between Dogecoin and Bitcoin is that there is no limit on the total supply of coins in Dogecoin whereas Bitcoin has a fixed supply of about 21 million coins, of which not all have been mined yet.Bitcoin is a kind of “digital gold” used as a secure hedge against political and economic uncertainty. Dogecoin, on the other hand, is a meme, people add to their digital wallet because they think it’s funny. 

Should You Buy a Dogecoin?

When I started investing in Crypto it was close to  ₹0.30. The graph of Dogecoin has always been straight and there were' t any jumps in the graph!

Until these Reddit Groups and Elon Musk started tweeting about it. People thought that its something interesting and started investing in it. They are pumping the price of Crypto! We never know when there is going to be a huge dip. It's risky and if you still want to take risks then yeah, you can invest but always remember don't be greedy and emotional while investing!