One such cryptocurrency which no one has ever heard before has suddenly become very popular, that within last 1 month its price has increased to 900%.
Today we are talking about Dogecoin. Dogecoin on a random particular day became trending on Twitter. How did this happen? why is dogecoin price is increasing? what reasons are behind it? where is this cryptocurrency being used?
And what is the role behind Elon Musk and some twitter groups, all such things will be discussed in today’s Article.
Doge Coin?
Let’s start with Dogecoin story from starting. In 2013, this meme shown below became very popular. Here in this meme, Shiba Inu, a Japenese dog picture is there, along with that wrong English is mentioned, and this became very popular.
This became so much popular that Knowyourmemes, a meme website stated this meme as a top meme in 2013.
One day Adobe’s software engineer Jackson Palmer tweeted stating that Dogecoin can become a next big thing. This tweet unexpectedly got so much response, that he bought a domain called dogecoin.com which is a span on 1 month got more than 1 lakh visits.
He wrote on his website dogecoin.com, that whosoever can help to bring dogecoin into reality can come to me.
After that IBM’s software engineer, Billy Markus contacted him, and both of them together brought dogecoin into reality. After bringing this into reality, dogecoin gained tremendous popularity.
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Dogecoin, cryptocurrency became very popular on Reddit as well. In 2017 starting, dogecoin’s full market value was $20 million which in the ending of 2017 went to $2 billion.
After 2017, there was no such activity in this cryptocurrency, but from past few months or say past 1 year there have been some activities, and behind this, there are many reasons, which we discuss one by one.
Why Dogecoin Price Increased ?
Behind dogecoin’s price rise there are mainly two reasons. First is Elon Musk and second is Reddit users. First, let’s talk about Elon Musk. Elon Musk for quite a long time is tweeting in favor of Dogecoin.
And you must know that whenever Elon Musk tweets about something not only the world but stock market and cryptocurrencies also moves from it.
Whenever Elon Musk tweets, the impact is powerful. When he tweeted about Signal, a growth in signal user base was also seen. Also when he tweeted about Gamestop, then the share prices of GameStop increased crazily.
Thus, because of dogecoin’s tweets by Elon Musk, this also popularized a lot. See the recent tweets by Elon Musk. He recently took a poll by questioning people that which is the future cryptocurrency on earth.
Will it be dogecoin or other cryptocurrencies? And in this poll, people are majorly seen voting dogecoin. Another reason for the high price in dogecoin is Reddit users.
There are two Reddit groups, Wallstreetbets and Satoshi street bets. Here Reddit users target is to increase the dogecoin price and bring it to $1 per coin.
Currently, the price of dogecoin is $0.06, so their target is to get this to $1, and for this, they have formed a community and by being united they are purchasing dogecoin, and thus they planned that until and unless dogecoin doesn’t reach $1 they will not sell it.
why are people investing in dogecoin?
The main reason is that people are looking at it, not as an investment but they are looking at it as a culture, community.
People who are investing in dogecoin they are building up a community and this community takes up new initiatives. For instance, the Jamaican Bobsleigh Team was qualified for Winters Olympic game but they didn't have money for participating in the same.
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For this dogecoin donated $50,000 for them, due to which this team went to winter Olympic team. Just like that, they have helped many players also.
For a country like Kenya where there is water scarcity, thus, to solve this problem they took many initiatives. So this way, the dogecoin community helps in fund-raising, social causes.
But many times, many people took inappropriate advantage of this. A person called Alex Green whose real name is known to be Ryan Kennedy started donating big-big amounts of donations, due to which in dogecoin community this name came out.
Due to this, Alex Green stated that he wanted to create a dogecoin exchange and for that he would be needing 2-4 million dollars. So he raised 2-4 million dollars (14-28 crores) from dogecoin community.
But later, this came out to be a scam, in which many dogecoin investors faced losses.
So in that period, many more scams related to dogecoin came out. Then Jackson Palmer who made Dogecoin said that many scams are coming out and many people are using it for wrong purposes, so for some time, he maintained a distance from dogecoin.
Problems Related to Dogecoin
Now we’ll talk about problems related to dogecoins. The 1st problem related to this is that supply is quite huge. Currently, 100 billion dogecoins are available and now every year 500 billion dogecoins will come.
If we talk about Bitcoin the supply is limited. Overall only 21 million bitcoins will be there in existence.
This point related to supply is very important. Another reason is that for the past many years, the software update has not happened for dogecoin.
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Also, no new technology has been used for dogecoin. The innovative technology of Bitcoin has been used here. In Bitcoin, many new technological initiatives have taken place.
But this didn’t happen in Dogecoin. Thus, to summarize this whole dogecoin, we can say that more than the investment it is a community.
Many communities have brought in Putin Coin, Trump Coin, so this is a community more than an investment. It would be better if you look at this as a community.
It is agreed that Dogecoin has given a lot of return for the past few years but when the euphoria gets finished then the chances of price decreasing is also a lot.
If we talk about Gamestop only, then after the Elon Musk's tweet its price increased up to $347 but then slowly and steadily it is decreasing to $100.
Because of this many investors face loss as well. If you liked this information then share it among your friends so that they’ll also know about the high popularity of dogecoin, its high share price, the story behind it, with easy explanations and less time.
How to Buy Dogecoin?
Finally if you have decided to buy a Dogecoin then Binance is the Best option, as it is currently leading in the cryptocurrency exchange market.
If you want a Full Detailed Article on How to buy Dogecoin in India, then comment below, I will make a Detailed article on How to buy Dogecoin.
If you want to know about cryptocurrencies technology, and how does blockchain technology works, then Comment be Below.
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