Dogecoin (DOGE) is a cryptocurrency that is taking the world by storm with over 129.5 billion coin in circulation. In 2013, Jackson Palmer and Billy Markus created this open source cryptocurrency as a sarcastic meme coin. Even though it was started as a joke, Doge’s blockchain still has a lot of merit as it is derived from Litecoin’s technology. Dogecoin can be merge mined with Litecoin, meaning miners can mine both cryptos simultaneously using the same work. Essentially, practically everyone who mines Litecoin chooses to mine Dogecoin as well, because merge mining Dogecoin increases profits. Dogecoin has the image of a Shiba Inu dog as its logo and has a loyal community of supporters who trade it and use it as a tipping currency for social media content. This group has banded together to support a variety of charitable endeavours and other ventures. They were also able to fund a NASCAR race.
Billy Markus thought that by branding it as a more lighthearted coin, it would have a greater chance of going mainstream, as opposed to coins like Bitcoin and Ethereum. Dogecoin’s casual presentation suited the mood of the burgeoning crypto community. Its scrypt technology and unlimited supply was an argument for a faster, more adaptable, and consumer-friendly version of Bitcoin. Dogecoin is an “inflationary coin,” while cryptocurrencies like Bitcoin are deflationary because there’s a ceiling on the number of coins that will be created. Although Dogecoin is nowhere near the scale of Bitcoin, the meme currency’s market cap has risen from more than $1 billion in early January to $47 billion in May according to CoinMarketCap.
Celebrities like Elon Musk and Snoop Dogg have been supporting Dogecoin, which is driving its price up. There are even rumours that Tesla will begin accepting dogecoin soon. Elon Musk’s tweets once even caused the price to rise from a 24-hour low of 0.062 dollars to 0.078 dollars, a 20% increase. A strange combination of factors, including Elon Musk’s apparent endorsement for the coin and overwhelming support from Robinhood dealers, has propelled Dogecoin into the mainstream. Many have even started calling Musk “The Dogefather”. DOGE liquidations topped Bitcoin (BTC) at one point during the market mania, demonstrating the asset’s great demand.
On a year-to-date basis, the token has climbed approximately 7,000 percent. DOGE achieved its all-time high of $0.73 on 8 May 2021, driven by Elon Musk as well as its cult following. At this rate it just might become a viable currency. Doge to the moon!