Dogecoin, the most well-known joke cryptocurrency, has an iconic and devastating pricing record that has made some people billionaires while also causing others to lose money.
Even though Doge significantly boosted its market value at the beginning of 2021, the coin has since dropped many ranks in the rankings.
So, the day's issue is if it is too late to make an investment in Dogecoin, and it is still not too late.
Dogecoin is a meme currency founded in 2014 by Jackson Palmer and a mysterious figure known as "Shibetoshi Nakamoto." The currency began as a joke to serve as a competitor to Bitcoin and Litecoin. As with BTC, Dogecoin is a proof-of-work cryptocurrency mined with the assistance of computers capable of performing complicated mathematical computations.
Dogecoin is a peer-to-peer currency, which implies that individuals may easily transmit it to one another.
Additionally, who may use the currency to make purchases anywhere it is accepted. Due to bitcoin's volatility, relatively few businesses accept it as a form of payment. AMC, the world's largest movie theater chain, has suggested that it would begin taking Dogecoin.
Dogecoin's popularity has propelled it to the forefront of the cryptocurrency world. Dogecoin now has a market valuation of about $28 billion, and this places it as the world's tenth-largest cryptocurrency. Dogecoin is more valuable than Southwest Airlines, Lazard, United Airlines, and Box.
DOGE's History
Dogecoin's history may be similar to that of other cryptocurrencies in that it has had ups and downs, hacks, and controversies. However, its history is also worth reading since it has one of cryptocurrency's most unusual and interesting sagas.
Jackson Palmer, an Adobe software developer, came up with the first concept for Dogecoin (you can listen to the tale here). He was a supporter of open-source software but was wary about cryptocurrencies because he saw numerous non-technical individuals "shilling" something incredibly technical. He examined Coinmarketcap, which had less than 100 cryptocurrencies, and saw that new ones were being added very often. Simultaneously, Palmer saw that the Doge meme was gaining traction. This inspired him to mix the two notions, and he joked about "the next great thing" — Dogecoin – on Twitter. The tale remained as a joke, primarily within Palmer's circle of acquaintances. However, who also shared it with the broader crypto community. Palmer was called one day by Billy Markus, a software engineer at IBM, with the proposal that he build Dogecoin on a more permanent basis.
One thing to keep in mind is the time between the first tweet and the launch of Dogecoin. Palmer published the tweet in late November 2013 and launched the cryptocurrency in early December of the same year. That's just a few days from concept to execution.
How does Dogecoin work?
Dogecoin was forked from Luckycoin, which was forked from Litecoin. Like its forks and any other cryptocurrency, DOGE is based on blockchain technology. Mining ("proof-of-work") generates new currencies. Auxiliary Proof of Work is the name given to the proof-of-work algorithm employed in Dogecoin. Its unique feature is the possibility of mining DOGE concurrently with another proof-of-work cryptocurrency (most notably Litecoin) at no additional cost, which is a process called merged mining.
Unlike Bitcoin and many other cryptocurrencies, DOGE, on the other hand, does not have a hard cap. Whereas only 84 million bitcoins or 21 million bitcoins will ever be mined, DOGE has no such constraints.
Because Dogecoin's mathematical equations are more straightforward to solve than Bitcoin's, new blocks of transactions are confirmed every minute on the Dogecoin blockchain, compared to 2.5 minutes for Litecoin and 10 minutes for Bitcoin. Dogecoin can handle around 30 transactions per second, far more than the Bitcoin blockchain's 3-7 transactions per second but less than half of Bitcoin's 56.
How Is Dogecoin Used?
When reviewing the majority of cryptocurrencies and digital tokens, I do a thorough dive into the protocol's architecture and technology. However, this is not the case with Dogecoin due to its lack of distinctive characteristics. DOGE would be classified as an alternative currency in principle, built on bitcoin. Additionally, Elon Musk just began accepting Dogecoin as a way of payment for Tesla products, which seems to be the use case he envisions.
However, if any cryptocurrency deserves to be labeled as a speculative asset, it should be Dogecoin. It has now spawned a whole new cryptocurrency category: meme coins. You may already be familiar with the Shiba Inu coin (SHIB). Nonetheless, there is already a slew of somewhat similar cryptocurrencies, like Dogelon Mars (ELON) and Woof Coin (WOOF), but whether you can purchase them on your preferred exchange is another story!
Why has Dogecoin surged in value?
There are various explanations behind the price increase of Dogecoin during the last several years. This increase is due mainly to the currency's link with other cryptocurrencies. A deeper examination reveals that the majority of digital currencies have increased in value during the last several months.
Indeed, CoinGecko's overall market valuation of all cryptocurrencies increased to about $3 trillion, and this makes it one of the world's largest asset classes. It isn't easy to imagine a cryptocurrency that hasn't increased in value during the last five years.
Second, DOGE has benefited from the Federal Reserve's cheap money policy like other cryptocurrencies. Generally, riskier assets do well during periods of low-interest rates.
Dogecoin Price
Despite its existence since 2014, Dogecoin was mostly forgotten for the first six years. When Dogecoin was established, its price was $0.0002, and it remained stable until 2021. In February 2021, the currency had what seemed to be a significant increase to $0.079.
Nobody realized that this was just the beginning. It achieved an all-time high of $0.67 in May, marking a 334,900 percent return. Why may you inquire? The whole crypto market was experiencing a boom at the time (similar to what NFTs are experiencing today), and many cryptocurrencies profited. Thus this was likely a role.
On May 4, Dogecoin attained a market capitalization of $75 billion. Elon Musk's connection with the currency started at this moment. Tesla's creator tweeted about Dogecoin, giving supporters another reason to be optimistic about its future.
However, everything has deteriorated since then. By summer 2021, the crypto market as a whole had imploded, and DOGE had followed suit. Its value plummeted to barely $0.17 in July. Although the price has seen a few small surges since then, it hasn't matched its prior all-time high.
Prediction of Dogecoin Price 2022 By Experts
For those of you who missed the peak of Dogecoin's price climb in 2021, you may be wondering whether it's too late to purchase Dogecoin. To determine the solution, let's examine the Dogecoin price forecast chart below.
According to Yahoo Finance.com, several analysts anticipate that Dogecoin's price will reach USD1 by mid-2022. Others have claimed that Dogecoin's price would reach USD1.5 in five years.
According to the technical analysis indicator, Dogecoin is now trading below its 200-day simple moving average. However, a significant development scheduled for 2022 may boost its worth in the long run. By 2022, DOGE is projected to be able to pump more.
While Dogecoin seems to be a wonderful investment on paper and has made some individuals billionaires overnight, keep in mind that it is a highly volatile, unstable cryptocurrency with no actual use.
While Dogecoin has been highly profitable in recent months, its long-term behavior is uncertain; its price may spike drastically in response to a celebrity tweet, or it could fall to zero. It is prudent to do extensive market research and avoid making rash conclusions.
Another issue to consider is that Dogecoin is, by definition, an inflationary currency. This implies that at some time, the supply of coins will exceed demand, causing their price to plummet rapidly.
However, there are some grounds to believe that Doge might be profitable in the long run.
Dogecoin's popularity
Popularity is a factor that may cause a crypto currency's price to skyrocket. Because Dogecoin is so popular as a result of the strong support it gets from specific people, there is a danger that its price may skyrocket unexpectedly at any time - with the potential to make billionaires.
It might be an excellent long-term investment.
Many individuals who purchased Doge years ago had reaped enormous returns for their perseverance when it was worth it. Numerous quick billionaires have been created in this manner in the cryptocurrency realm.
And for the sake of clarification, here are some reasons why you should avoid purchasing Dogecoin:
Volatility
The cryptocurrency sector's extreme volatility is particularly apparent with assets such as Dogecoin since it is a currency whose price growth depends on pure speculation and celebrity opinion. That implies you might just as easily lose your money as you made it.
It is a coin that is prone to inflation.
As previously said, Doge's supply is limitless, which means that sooner or later, there will be more coins accessible on the market than there is demand for them. Doge's value will drop if a large number of individuals abruptly dump their investment.
What Factors Should You Consider When Buying Dogecoin?
While buying is certainly a reasonable investment for many people these days, it is important to analyze all factors. These concerns extend beyond where to obtain Dogecoin, how to purchase it, and whether to purchase or trade this commodity. In that regard, the following are some additional points to consider:
Fees for deposits
Certain services will actually charge you to fund your account, and this is before you purchase Dogecoin. Naturally, nobody likes to be paid needless costs, so find a broker that charges no deposit fees.
Trading commissions
Each time you perform a Dogecoin transaction, your selected platform may charge a tiny commission. That was just part of the trading game, at least until commission-free platforms such as eToro became available.
Volatility
When it comes to investing, volatility is inescapable, and cryptocurrency is by far the most volatile of all asset classes. Dogecoin is included here, and although massive pumps do occur, massive corrections are also very typical.
Regulations
Dogecoin is available on various platforms, although not all of them. Therefore, if you want to purchase Dogecoin, you must first find a platform that offers the asset. Bear in mind, however, that restrictions governing Dogecoin's availability are subject to change at any time.
Long-term investment
When acquiring Dogecoin, you must decide on a plan. Are you buying it as a long-term investment, a store of wealth, or a means of currency?
Holding for the short term
This is more for Dogecoin dealers than for 'buyers.' Those who hold for a short period of time are most likely doing so in order to profit quickly, which is a dangerous strategy that should be undertaken only by experienced traders.
According to The Wall Street Journal, the question is on some people's minds going into the weekend. At the moment, long-term investors are attempting to convince their friends to invest, and both of those buddies are concerned that they may be buying a bit too late.
According to Susannah Streeter, a senior investment and markets analyst at Hargreaves Lansdown PLC, there may never be an optimal moment to invest.
"While it is nice to see more individuals dabbling in trading, this is more akin to horse betting than investing," Streeter told The Wall Street Journal. "Determining when demand will diminish is very difficult, if not impossible."
Dogecoin is an intriguing investment right now. The cryptocurrency's value is determined by social media excitement and conversation. Because the cryptocurrency has no physical worth (it is not a tangible commodity that can be sold or used in shops), it generates value due to people talking about it and investing in it.
Is Buying Dogecoin Online Safe?
Purchasing cryptocurrencies is considerably safer than it was before. Indeed, investing in cryptocurrencies such as Dogecoin through reliable services is highly secure. Given the volume of investment flowing into these types of assets, the majority of brokerages, exchanges, and wallets have subsequently built layer upon layer of security. With that stated, there are other methods to acquire Dogecoin and safeguard it more securely:
Storing funds in a secure online wallet
Keeping your coins in a hardware wallet (cold storage)
Enabling two-factor authentication for your online accounts
Confirmation of your online account
Configuring your account's security questions
Developing a strong password' and a cryptic username
If you follow the recommendations offered above, you can feel comfortable that you've taken all precautions to invest safely in Dogecoin.
Dogecoin's Future
What began as a joke in 2013 between computer programmers Jackson Palmer and Billy Markus to establish a digital payment system has grown into one of the industry's most popular cryptocurrencies. At first, the cryptocurrency's future seemed doubtful, but that changed as it started to amass wealth, eventually reaching $1 billion in 2018.
Much of its success may be attributed to its highly engaged community, which is continuously involved in charitable endeavors. The cryptocurrency's open-source character has also contributed to this, making it more appealing as "the people's cryptocurrency."
Additionally, this large user base views cryptocurrency mainly as a medium of currency and not as a digital asset. However, some more serious investors store vast quantities of coins.
Even with the dizzying price swings caused by celebrities like Elon Musk or Mark Cuban, the cryptocurrency maintains a rather consistent price during moments of quiet, indicating that Dogecoin is likely more than a temporary craze.
Of course, investors would feel much more worth it if the cryptocurrency reached and maintained a price of $1, but this is quite improbable.
Finally, what will ensure that Dogecoin maintains or increases in value over time is surely the community's support and their ability to create methods to improve the currency's use, similar to what is occurring with its direct rival, Shiba Inu.
Final words
To be successful, a cryptocurrency, like any other asset or commodity, must outperform the market in some way. Cryptocurrencies compete on a variety of levels, including speed, scalability, and the capacity to provide a unique technical solution to a problem. However, Dogecoin and other satirical cryptocurrencies are distinct. Individuals invest in them to participate in the joke, often after hearing that a particular cryptocurrency is doing well or doing something amusing. And Dogecoin most emphatically delivered on the fun factor.
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