Introduction:
Cryptocurrencies have been making storm in recent years, and Dogecoin is no exception. This coin, based on a dog-related meme, was created as a joke by IBM software engineer Billy Markus and Australian marketer Jackson Palmer in 2013.
However, it has since grown in demand and is now the fourth-largest cryptocurrency in the world, behind only Ethereum, Bitcoin, and Binance. How did a joke coin become so well-known, and why do people purchase it? Let’s explore the rise of Dogecoin.
1•The Rise of Alt-Currencies:
Bitcoin’s drawbacks, such as long transaction times and high energy consumption, led some individuals to create their own alt-currencies as substitutes. Alt-currencies work to mitigate Bitcoin’s downsides using various means, such as Ethereum or Litecoin. As a result, some individuals began creating their own coins for fun, without any advantages over Bitcoin.
These coins were known as “shitcoins” since they did not improve the world or accelerate the process in any positive way. However, some people have also produced their own coins to defraud investors, a scam known as “pump and dump.”
2•The Birth of Dogecoin:
The popularity of the Doge meme peaked in 2013, and the creators of Dogecoin, Markus and Palmer, came up with the idea of combining the meme with cryptocurrencies as a joke. Dogecoin’s code is based on Litecoin’s, which offers some benefits over Bitcoin, such as faster processing and lower transaction costs.
However, it is surprising that Dogecoin’s market value has already overtaken that of Litecoin.
3•The Role of Reddit:
Dogecoin’s rise can be attributed in part to the Reddit website. Users began using Dogecoin as a tip for appreciating posts or comments, and over time, this practice became more common. Dogecoins were used and traded so frequently that their value began to rise quickly.
4•Elon Musk’s Endorsement:
Elon Musk, the CEO of Tesla, first became aware of Dogecoin in 2018 during a meeting with Jackson Palmer to discuss Twitter scammers. Musk has since tweeted about Dogecoin multiple times, either indirectly or explicitly endorsing it. Every time he tweeted, Dogecoin’s value increased by 25% to 50%.
When Dogecoin was at its highest worth, it was around $80 billion, and its proponents want to raise its value to $1.
Conclusion:
Dogecoin’s rise from a joke to the fourth-largest cryptocurrency is a testament to the decentralized nature of cryptocurrencies and the power of social media influence. While some people may view Dogecoin as a “shitcoin,” others have embraced it as a fun and easy way to participate in the cryptocurrency market.
However, it’s necessart to remember that cryptocurrencies are still a relatively new and volatile investment, and investors should do their research before buying any coin.