You must have heard of the term cryptocurrency. It is the digital currency that is on the rise. Many people have invested in digital currencies or cryptos recently. However, because there are so many types of cryptocurrencies that are available in the market, it can get difficult to decide which one to purchase.
Some of the most important and well-known cryptos at present are Ethereum, Bitcoin, and Dogecoin. In this article, we are going to talk about dogecoin. So, in order to learn more about this one, keep reading the article till the end…
Dogecoin
The cryptocurrency that Jackson Palmer and Billy Markus, both software engineers, have created is dogecoin. It first came to the market in the year 2013 and is available on Android, iOS, Linux, as well as Microsoft Windows.
The main reason why this crypto rose to fame is because of the satirical image of the Shiba Inu dog as the face of the currency. However, the currency has been able to develop a huge community, with a market of more than 85 billion dollars (USD).
The main aim of the currency is to promote the concept that cryptocurrency is not a serious one like other cryptocurrencies.
But, did you know that the coin started as a joke to make fun of the popular Bitcoin, which is again one of the most popular and successful digital currencies in the world at present?
How Does The Meme Currency Work?
Like all other cryptos or digital currencies, dogecoin also works on blockchain technology. While the engineers or miners use mathematical equations for processing the transactions done with the dogecoin, they gain these currencies in return.
If you are planning to invest in dogecoin, you will be able to use them for various digital transactions. In other words, the purchases and the other transactions that you carry out digitally can be made through these dogecoins.
However, if you are planning to use this currency as an investment in order to store value, then you must think about reconsidering.
One of the main reasons for this to happen is because you cannot specify that there is a lifetime cap rate in the case of Dogecoins. Therefore, there is no limit to which these coins can be created. This means that dogecoin is one of the most inflationary currencies out there.
Is Dogecoin Volatile?
It must not come as a surprise to you when I say that dogecoin is one of the most volatile coins or digital currencies out there.
While it is true that many people have turned into millionaires after investing in dogecoins, it is also true that the market related to dogecoin is one of the most unpredictable.
One of the reasons for this to happen is because there is an unlimited source and production of dogecoin. Therefore, when the miners process the transactions done by the dogecoins, the system rewards them by making new dogecoins.
When this happens, it makes the market of dogecoins extremely challenging for price gain speculations. Thus, to make sure that the price of the currency remains stable or increases, the investors need to purchase and invest in dogecoins continuously.
Can Dogecoin Go Up Like Bitcoin?
One of the most important factors that investors think about is whether dogecoin can ever be equal to bitcoin in the future.
The answer to that is simple.
Even though it is true that the market of dogecoin is not as huge as that of bitcoin, there are chances that it will grow eventually. This is because there is much significance when it comes to dogecoins.
The fact that it is easier to invest in and more efficient for transactions is a great advantage of this digital currency. In addition, the absence of the lifetime cap of dogecoins also makes it possible for the miners to help create new coins over time.
This means that, unlike bitcoins which have a limited lifetime cap, dogecoins are unlimited. This factor makes it possible for the market of the coin to grow.
Another great factor that is a reason for the growth of dogecoins is the fact that many influential people like Elon Musk have also started to talk about Dogecoins. These people are very enthusiastic about this digital currency for being the original meme crypto.
The fact that the market of dogecoin has increased up to 85 billion dollars already is great evidence of the potential of this crypto to become the new most preferred digital currency soon.
Final Words
There are many cryptocurrencies in the world at present and dogecoin is definitely one of the most popular ones. The digital currency started as a joke to make fun of the famous Bitcoin. However, little did the makers of the currency know how popular this currency could be.
The popularity of the currency has gone up after influential people like Elon Musk repeatedly showed his interest in the currency. The fact that there is no limit to the production of the coin makes this currency very volatile.
