Dogecoin is the success story this year. It went from 0,002 US-Dollar up to 64 Cents per DOGE. Many investors became millionaires while others sold happily all their DOGE at 8 Cents and missed out on the opportunity. Analysts gave reason to believe that Dogecoin only started a long-term rally and TikTok influencers are absolutely sure that Dogecoin will hit a price of 1 US-Dollar later this year.
But what is Dogecoin in the first place? And why did it become so successful all of a sudden? In today’s article we are going to dive a little bit deeper into the world most famous cryptocurrency that is closely connected to a meme.
Who invented Dogecoin?
To start with an answer what Dogecoin is we first have to start with its invention in the year 2013. One of the most prominent figures in Dogecoins history is Jackson Palmer. His motive to create a cryptocurrency was quite different from all of the other cryptocurrency developers who came before him. Other inventors like Satoshi Nakamoto or Litecoins Charly Lee aimed to create a cryptocurrency that has actual use and could possibly change the way mankind is going to transact.
Dogecoins design is close to Litecoin because Doge is basically a Litecoin fork. Meaning that Dogecoin was based on Litecoins code, but its inventor changed a couple of traits and feature to make it more suitable for the one purpose Dogecoin was invented. Dogecoin was meant as a joke, because Palmer wanted to ridicule cryptocurrencies and an early industry that he felt was a little bit shady. But it turned out that Dogecoin became more than just a joke.
In fact, even its inventor couldn’t foresee the huge success that Dogecoin had just a couple of month after its start. It is worth to mention that Jackson Palmer left Dogecoin a long time ago and he don’t like to get affiliated with this project anymore. Palmer donated all of his DOGE years ago to charities.
Why is Dogecoin a meme?
To ridicule cryptocurrencies Palmer created Dogecoin combining the technology of a cryptocurrency with an already existing meme. In the end of the day he accidently introduced more people to cryptocurrencies by memes and tips. Dogecoin was so cheap and so plenty that sending thousands of Doge as a tip wasn’t expensive at all. Those who received the tips were not only happy because they were gifted something, but they also had to figure out how to use a wallet and were introduced to the idea of the blockchain itself. Tipping other users through social media bots became the Dogecoin number one use case just a few month after its invention. This is also a reason why it became so widespread and successful.
The counterfeit of Dogecoin is the Shiba Inu. The Shiba Inu is a breed from Japan and the dogs are so cute that “Doge” became a meme on its own before the invention of Dogecoin. Therefore, Dogecoin used a meme that was already popular on the internet and part of its success is the fact that it got recognized by many people in the beginning.
Why is Dogecoin considered to be worthless?
Despite the fact that Dogecoin saw an all-time high of 64 Cents many analysts believe that Doge is worthless. Their opinion is based on the specifications of Dogecoin. The most important difference between Dogecoin and other cryptocurrencies is that Doge has an unlimited supply.
Since many analysts believe that Bitcoin is valuable because of its scarcity, they simply deny the value of Dogecoin, because it is quite the opposite of BTC. Nevertheless, Dogecoin has seen a tremendous rally, because this theory is not considering that Doge has no infinite supply at the moment. It has a circulating supply of roughly 129 billion DOGE and a significant amount is controlled by only a few entities. With the increasing buying pressure, the price took off, because it is more relevant how many DOGE are available at the very moment when the demand is rapidly increasing.
Is this all a joke?
No, it started as a joke, but Dogecoin evolved into an internet phenomenon and is a serious investment. It evolved not by its design, but by the fact that the masses recognize it as an investment. It is worth to mention that an investment in Dogecoin comes with a lot of risk, but as the recent past has shown also a lot of upside potential.