You might have seen this all over Twitter/News. For past couple of weeks or even months that this Dogecoin is making people multi-millionaire! But, Before you invest in it, let's understand
What Dogecoin really is?
It is a Cryptocurrency, so in order to understand basically what’s happening with it, you should understand what cryptocurrencies are and so we will use Bitcoin, the most prominent one as our example here.So Bitcoins been around since 2009. It is the largest cryptocurrency by market cap till date. It is basically a decentralized digital currency. It’s an unregulated, highly volatile digital currency built on blockchain.
And of course Bitcoins not the only one there are tons of other cryptocurrencies based on the same thing but some alterations of the same rules like Ethereum, Litecoin, Stellar, Ripple etc and they are all basically trying to give you some reason for them to catch on, some reason that they are are better than Bitcoin to invest in or use.
Here comes Dogecoin which was literally started as a joke, as a tweet by Jackson Palmer while he was working at Adobe, making fun of how many altcoins there were. It’s like one of those jokes that catches on so much it becomes more than that, like a real thing. So he collaborated with Billy Marcus from IBM and they gave it a logo, registered and launched it, built the coin and now it’s real.
And now people are taking it super seriously but also kind of as a joke. Interesting right! The point is, Dogecoin felt like the Crypto for the people, like more accessible less intimidating version for the people. The smaller price made it ideal for things like micro tipping on social media websites like Reddit would let you just tip in Dogecoin if you wanted to.
And lately of course, Elon Musk seems to be really enjoying it. Like if you look at his Twitter over the past couple of months it’s just been all Dogecoin and you can actually watch the price and volume of Dogecoin go up the more he tweets about it and then it will sort of simmer down and that’s just the way it is now.
Opinion: In a nutshell, Dogecoin has caught on as an altcoin but also as a meme. And we think this meme has a longer shelf life than most, cause it feels like the currency of the internet attention. Keep in mind that one of the reason behind the value of Bitcoin is that its limited i.e., only 21 Million in the world , while Dogecoin is unlimited and its number is increasing day by day as its created everyday which might have negative impact on its value as it has no supply cap. Now as far as if you should invest or not, we will recommend that you shouldn’t invest any money that you are uncomfortable with turning to zero dollars, because it could. Remember it’s a highly volatile market so don’t invest all your savings in it. But if you really want to invest in cryptocurrency, start with smaller amount like 100 bucks or so.