We are living in a world where cryptocurrencies have been able to receive lots of positive attention when compared to traditional currencies. When you take a look at the popular cryptocurrencies available out there, you will notice how Dogecoin is holding a prominent place out of them. Keep on reading and we will share all the details that you will need to know about Dogecoin.
What is Dogecoin?
Dogecoin is among the top 5 most popular cryptocurrencies as of now. You will be able to use it in the form of a traditional cryptocurrency for trading. However, there is no practical use case behind Dogecoin. It has been designed in the form of a meme coin. Jackson Palmer and Billy Markus are the two founders of Dogecoin. They created this cryptocurrency while working as software engineers at Adobe and IBM back in the year 2013.
When Dogecoin was initially released, it failed to gain a lot of positive attention. However, the popularity of Dogecoin skyrocketed when the supporters of were able to raise an amount of 67.8 million Dogecoins back in the year 2014, to sponsor a NASCAR car ride. This amount was equivalent to $55,000.
What made Dogecoin so popular?
The popularity of Dogecoin skyrocketed in the recent past. Due to the same reason, it is worthy to explore and see what made this cryptocurrency so popular in the recent past. When you take a look at the recent history of Dogecoin, you will figure out that its popularity of skyrocketed due to the influence created by Elon Musk, the CEO of Tesla. Along with Elon Musk, Mark Cuban could also contribute a lot towards the popularity of Dogecoin. They tweeted about Dogecoin and contributed a lot towards the increasing popularity of the coin.
The attention of two of the most influential figures out there in the world contributed to the popularity of Dogecoin. As a result, the price associated with Dogecoin started increasing. You can also see how a large number of subreddits are available on Dogecoin. For example, the subreddit had a follower base of just 180,000 at the beginning of 2021. However, it was able to reach around 1.5 million by mid-April.
Understanding Doge Day
When you are learning more about Dogecoin, you should also have a clear picture in mind of what Doge Day is all about. The investors behind Dogecoin are looking forward to keeping the momentum of this cryptocurrency going forward. As of now, they are working on the objective of pushing the price of Dogecoin to more than $1. This would provide some amazing returns for the people who went ahead and purchased Dogecoin while it was only a few cents.
As a part of this initiative, the concept called Doge Day was initiated. Doge Day falls on the 20th of April. This day doesn’t have any strong relation to the coin. However, the 20th of April is also considered a holiday by the marijuana enthusiasts out there in the world.
We could see how Doge Day was successful at the time of pushing the price of Dogecoin up to a greater limit. Even though it didn’t reach $1, we were able to see how the price reached its highest value in history. However, it came back and settled in the mid-20 range within around 48 hours.
How similar is Dogecoin to Bitcoin?
Bitcoin is the most popular cryptocurrency that you can find out there in the world. When you are investing in Dogecoin, you will get the need to compare it with Bitcoin as well. At the core, Dogecoin is a cryptocurrency that is pretty much similar to Bitcoin. For example, you can purchase a certain amount of Dogecoin from one of the cryptocurrency exchanges. You will be able to call this a form of currency as well.
The applications of Dogecoin are limited as of now. But if the popularity of Dogecoin increases, we will be able to see numerous applications associated with the cryptocurrency being available for people. It is still possible for you to see some of the services, where you can buy with Dogecoin. For example, it is now possible for you to buy products from Newegg with the help of Dogecoin.
One of the biggest differences that you can see between Dogecoin, and Bitcoin is the market capacity. Due to the architecture of Bitcoin, it is only possible to mine a total of 21 million Bitcoin. After that limit, there is no possibility to proceed with mining Bitcoin. However, you don’t find any such limit in terms of Dogecoin. That’s because you will even be able to mine billions of Dogecoin. The market cap associated with Dogecoin is 129 billion. Some people argue that there would be an excessive supply of Dogecoin when compared to the demand, which would make Dogecoin worthless. We are still too early to j by Dogecoin and go ahead with it. Even though Dogecoin is not backed up with any real use case, you will be able to see how it is gaining a lot of attention among cryptocurrency investors living out there in the world. You will be able to join them and buy Dogecoin.
In the future, the popularity of Dogecoin is expected to further increase. Along with that, we will also be able to see new uses of Dogecoin coming into the world. The Dogecoin that you have bought will be able to deliver profitable returns to you during such instances. While keeping that in mind, you can start to invest your money in Dogecoin.