Introduction
You already know about the rupee coin and Bitcoin. But there's a new coin that's globally famous now. It's called the Dogecoin. The value of our rupee is based on our currency. And Bitcoin is based on Blockchain that promises to revolutionize the monetary systems around the world. But this Dogecoin is based on a meme. Literally! This coin was made in jest. Someone took the Doge meme, this meme of the dog was quite famous at some point and made a coin out of it. It's like someone taking the "Pawri ho rahi hai" meme and turning it into a "Pawri coin". Or this meme of Akshay Kumar being made into "Akki coin". It's quite possible. Someone may very well make these Pawri coin and Akki coin. Because cryptocurrency is so decentralised that any person can develop their own coin. They'd need basic coding knowledge to do that. But the thing is that this Dogecoin became so famous that people like Elon Musk started buying it and promoting it.
Birth Of Dogecoin
This Doge meme was at the peak of its popularity in 2013. Jackson Palmer, an Australian marketer and Billy Markus, a software developer at IBM developed this Dogecoin then. Palmer says that he thought up this idea as a joke.to combine the two most popular trending topics on the internet.Cryptocurrency and the Doge meme. The code of Dogecoin is based on Litecoin. Litecoin is an Alt-Coin that does have a few advantages over Bitcoin. Like lesser processing time and lower transaction fees. But it is truly surprising that the market valuation of Dogecoin has already surpassed that of Litecoin. If you look at the largest cryptocurrencies of the world. Dogecoin coin has become the fourth-largest cryptocurrency. After Bitcoin, Ethereum and Binance.
Why Dogecoin is so Popular ?
The biggest question here is how is it possible? How did a coin made as a joke gain such popularity? Why are people buying it?
The first reason is the Reddit website. People on Reddit started using it as a joke initially. Whenever someone liked a post or comment on Reddit, people would award some Dogecoins to the OP as a tip. It was known as the DogeBot tip. Usually, this was a tip of 5 Dogecoins. And at the time the value of Dogecoin was 0.0002¢.It was a very small amount. But using Dogecoin as a tip started gaining popularity on Reddit. And this expanded over the years. Dogecoins were used so much and exchanged so many times that their value started increasing rapidly.
In September 2018, the CEO of Tesla, Elon Musk noticed it. Elon Musk met Jackson Palmer on the issue of Twitter scambots. The fake Twitter accounts that scam people using the guise of cryptocurrency. Elon Musk wanted to take them down because his name was being used to run these scams. So he asked for Jackson Palmer's help on this. That was when Elon Musk came to know about Dogecoin. After 7 months he tweeted "Dogecoin might be my favourite) cryptocurrency." In March 2020 he tweeted "Dogs rock. They are the best coins." So in the coming months and years he tweeted about Dogecoin several times which were indirectly or directly promoting Dogecoin. And because Elon Musk is so famous, perhaps the most renowned and liked billionaire in the world, every time he tweeted, it sent up the value of Dogecoin by 25% - 50%.
Eventually, 2021 followed 2020.And now the value of Dogecoin has exceeded 50¢.At its peak, Dogecoin had almost touched the valuation of $80 billion. Though its price has fallen a bit in the last couple of days, but the supporters of Dogecoin aim to drive its value up to $1.It means that the value of 1 Dogecoin would be equal to $1.Currently, it is around 50-60¢.
Should You Buy A Dogecoin ?
Because predicting cultural trends on the internet is next to impossible. You'd basically be trying to predict how the world would think collectively .I believe that the same thing applies to Bitcoin as well. You should invest only that much in Bitcoin that you can afford to lose. If Bitcoin crashes to 0 tomorrow, you would not suffer much even after all your investment vanishes. And Dogecoin is even riskier than Bitcoin. So this is even more valid for Dogecoin than it is for Bitcoin. At least Bitcoin has some value of its own. Because it presents a revolutionary technology. It presents an alternative monetary system. But it is not so with Dogecoin.
But at the same time, also remember this, friends, that only those things have any value in the society, in which people believe. If people think that a thing should have value, it does. You can see this with so many things. If people think that branded clothes have value, then their value exists and people buy them at exorbitant prices. The same thing applies to Dogecoin as well. If every one of us starts believing that Dogecoin does indeed have a value even if there really isn't any, people would want to buy it which would drive up its value.
And what can be the reason behind it? Absolutely any reason. If someone claims that Elon Musk's brand is attached to Dogecoin and it has a high value the same reason as with clothes. If a cloth is marked by a brand it has a high value. For the same reason, someone may say that Dogecoin's value should be higher. If society starts believing this its value will grow. And if society doesn't, its value will fall.
I hope that you liked this explanation. If you liked this article then do share it.
Thank you.
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