Despite its satirical nature, many investors consider the cryptocurrency Dogecoin an authentic investment option — including Elon Musk.
Doge is the native cryptocurrency of dogecoin, a parody cryptocurrency based on a viral internet meme of a Shiba Inu dog. It was created by software engineers Billy Markus and Jackson Palmer, who created the payment system in 2013 as as a mockery of the wild speculation in cryptocurrencies at the time.
A mockery? Its market value today is $34B.
Dogecoin is essentially a direct copy of Litecoin’s code and can be used to transfer value over the internet like all other digital assets. It was never designed to have any real-world utility beyond being a simple blockchain-based payment system; however, it quickly amassed a diehard community of fans who found and developed new use cases for it. Those included a third-party online tipping service, which led to doge becoming a leading tipping coin on social media platform Reddit and crowdfunding charitable causes using dogecoin.
Dogecoin is a decentralized, peer-to-peer cryptocurrency that is mined with an algorithm called scrypt.
“How does Dogecoin work?” is a question asked by many potential investors. According to SoFi Invest, Dogecoin uses proof of work technology to secure the blockchain. This is a famous mining algorithm that is used by many cryptocurrencies, including Bitcoin and Litecoin.
Dogecoin has become one of the more attractive options for miners because there are so many coins available in circulation compared to other top cryptos like Bitcoin or Ethereum. There will only ever be 100 billion Dogecoins, and more than 28 billion are currently in circulation.
The unique crypto is also known as the internet currency because it allows people to easily send money over the internet without going through a bank or credit card company. It is used by many investors who want their cryptocurrency balances displayed in USD instead of the more commonly used bitcoin. This is because it is easier for beginners, and its value holds well against the US dollar.
Dogecoin’s Large User Base and Stability
Dogecoin has a substantial user base compared to other cryptocurrencies. It is often used for small transactions because it costs less than one cent per coin. Therefore, its users can quickly send money online without going through an exchange or using another cryptocurrency as a middleman.
It has also become one of the more stable cryptocurrencies on the market. According to SoFi Invest, Dogecoin’s value changed less than one percent over 24 hours, and its price has remained relatively unchanged compared to other top currencies like bitcoin.
Dogecoin price prediction
Dogecoin offers a low price point compared to other cryptocurrencies on the market. This makes it great for people who want to invest in alternative currencies but do not have thousands of dollars available.
Its price prediction currently sits at about $0.0057 per coin, but it has been as high as $0.017 in the past year alone. This makes it an ideal investment for people who want to take advantage of the relatively low price-point while waiting for Dogecoin’s value to rise in the future.