By Sama Al-Kurdi
Who would have thought that memes can turn to gold? Well, this is what happened with Dogecoin!
First created by software engineers, Billy Markus and Jackson Palmer, Dogecoin was created as a joke based on a popular meme in late 2013. However, what no one would have anticipated was for it to soon become one of the most popular cryptocurrencies. Just like other cryptocurrencies, Dodgecoin runs on Blockchain and can be used to make transactions.
But the question is, what made it so popular? And why is it soaring in popularity just now?
Despite the fact that Dodgecoin was not the first of its kind and that other cryptocurrencies had been there long before it, it is quite obvious that it is gaining the attention of many. Many suggest that what makes it more appealing than Bitcoin is that it is much faster. Dogecoin doesn’t only seem appealing to those interested in cryptocurrencies but also those who love dogs, want to make fun of Bitcoin, or simply those who like innovative out of the box ideas. Not only that but Dogecoin is one of the fastest-growing cryptocurrencies. It is reported that since the beginning of 2021 and up until early May, the light hearted cryptocurrency has risen about 10,000% in value. Now if we want to compare it with leading cryptocurrencies such as Bitcoin, then Dogecoin’s price has increased a 100 times faster than that of Bitcoin’s, which saw a surge of only 85% during the same period.
Earlier this May, Dogecoin was able to surpass the 50 cent mark and reached $0.53 a coin, says Forbes. As of writing, Dogecoin is now the 7th largest cryptocurrency by market cap. The popularity of Dogecoin has a lot to do with the support of many well known people. In January 2021, the price of Dogecoin soared to more than 50% after an hour of a tweet by Elon Musk.
Not only is Elon Musk playing a major role in Dogecoin’s popularity, but he also aims to make it environmentally friendly, something that other cryptocurrencies seem to be lacking. He also went on to announce that he will no longer accept Bitcoin payments due to the harm that cryptocurrency causes to the environment.
However, despite the fact that investing in something as trendy as Dogecoin might sound appealing, it is important to be careful of how you invest. The hype and interest in Dogecoin seems to be greatly dependent on social media posts, and with that comes a high risk of market volatility. Furthermore, some experts even advise first time coin buyers to invest in other cryptocurrencies before diving head first into Dogecoin. Some also believe that unlike bitcoin, Dogecoin has no solid ground whatsoever and is even considered a “shitcoin”. Ultimately, whether or not Dogecoin will continue to be a hype for the coming years is still debatable, therefore it is better to keep an eye out on what the future holds to this joke turned investment!