Why DogeCoin is Causing Such a Stir

There are often interesting goings-on in the world of cryptocurrency, and with every year more people are paying attention to the markets. If you haven’t already involved yourself in this exciting new technology, then maybe it’s about time you broaden your horizons. Cryptocurrency is set to revolutionize industries beyond just finance, and those that stay ahead of the game will surely reap the benefits.

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What is Dogecoin?

Dogecoin (DOGE) is what is known as a “memecoin” – essentially a parody of cryptocurrencies that pokes fun at the mania that new cryptocurrencies frequently cause. You might have been able to tell from the name that the currency is not completely serious, but if not then the image of a Shiba Inu dog on the logo would be a dead giveaway.

On the DogeCoin website, it is claimed that “Dogecoin is an open-source digital currency, favored by Shiba Inus worldwide. Along with a cartoon image of the distinctly coy-looking Japanese dog.

DogeCoin, pronounced “dohj”, was developed by Billy Markus and Jackson Palmer, and launched in 2013. It began when Adobe employee Palmer sent a tweet as a jibe at the proliferation of altcoins at the time. He claimed to be investing in DogeCoin, a non-existent currency that he based on dog memes doing the rounds. But the joke gained real support as his followers warmed to the idea of a humorous coin to lighten the tone of an all-too-serious industry.

Palmer teamed up with another software engineer, Billy Markus, who adopted the pseudonym, Shibetoshi Nakamoto. This is a jesting play-on-words that combines the anonymous founder of Bitcoin and blockchain technology, Satoshi Nakamoto, with Shiba Inu.

Even though the currency began as a joke and is surrounded by irony, it was developed as a legitimate digital payment system with ambitions to make a stand against the few major cryptocurrencies, and it quickly gained a community of followers. Although it remained as a lesser altcoin for many years, recent months have seen a surge of interest in DogeCoin. They have also seen an increase in Dogecoin-themed memes across Twitter and other forums.

Dogecoin on the rise

Until recently, Dogecoin remained a low-ranking altcoin, with a price that usually didn’t exceed $0.003 per coin. There was a brief peak price of $0.017 in January 2018 during a cryptocurrency bubble, and a total market capitalization of two billion.

Fortunes changed for Dogecoin when it gained the support of one of the world’s richest people, Elon Musk, who tweeted in March 2020 that “dogs rock” and “they have the best coin”. This resulted in a 5 percent increase in Dogecoin price.

But it wasn’t until the beginning of 2021 that big things started happening for Dogecoin. In January the price surged 800 percent in 24 hours to $0.082, thanks to attention on Reddit and continued support from Musk.

In February, Dogecoin also gained a fitting endorsement from Snoop Dogg, who tweeted an imaginative Shiba Inu meme to Musk. Other celebrities that joined in the DOGE-meme fun include rock legend Gene Simmons from Kiss and Billionaire Mark Cuban.

At the time of writing, Dogecoin has just seen a series of surges, which have left it with a current price of $0.24 and a market cap of more than $31 billion. Though still far from a challenge to the likes of Bitcoin and Ethereum, as an altcoin, the DOGE is a serious contender.

A generation of altcoins

Since Bitcoin was introduced in 2009 there have been numerous cryptocurrencies seeking to claim a share of the market. Unfortunately, most of these have not come even close to the Bitcoin’s dominance, which usually has at least ten times the value of all other currencies. People unfamiliar with the industry often believe cryptocurrency and Bitcoin to be the same thing, and there is good reason for this misconception.

Altcoins, more pejoratively known as “sh*tcoins”, are the low-value alternatives to Bitcoin, of which there are more than 8,000. The second most valuable is Ethereum (ETH), which currently has a value of $2,437 compared to Bitcoin’s $62,495. Other prominent altcoins include Facebook’s Litecoin (LTC), Binance Coin (BNB), Tether (USDT), and Bitcoin Cash (BCH).

Altcoins can each have different characteristics and work slightly differently to Bitcoin, such as being able to produce coins more quickly. For example, while it takes 10 minutes for Bitcoin to mine new coins, Litecoin can do this in 2.5 minutes. Altcoins may also have lower transaction fees, or more specific applications when compared with Bitcoin.

Dogecoin is not the only cryptocurrency to have seen a huge increase in the last year, as Bitcoin, Ethereum, Binance Coin, and Cardano, among others, have also seen surges. All of this suggests a renewed interest in a technology that is soon to expand its global influence. Along with Dogecoin, there are many other currencies that it would be a good idea to watch in 2021 and beyond.