A Meme that made Millions!
Dogecoin was brought to life by two software engineers Billy Markus and Jackson Palmer, as a literal meme in 2013. It is based on Litecoin and has the same technology behind its proof-of-work. Dogecoin has a dedicated consumer base, which uses virtual currency for online tipping purposes on various platforms like Reddit and Twitter.
Jackson Palmer had been one of the more “skeptic-analytic” types of new technology, like the novelty that cryptocurrency displayed. But after some favorable reviews, he decided to purchase the official domain- dogecoin.com.
Billy Markus, a software developer at IBM based out of Portland, Oregon, wanted to create a digital currency. There were many obstacles in his way, and the project eventually slowed down. Shortly after he found himself searching for prospects and Dogecoin seemed to be a good option, Markus asked Palmer to allow him to build software for the real Dogecoin.
Some significant contributions of the dogecoin include the following events-
- Development projects like a well in Kenya were paid for by the dogecoin community.
- NASCAR driver Josh Wise was sponsored by being paid 55000$ worth of dogecoin.
By its first year of introduction, Dogecoin had a market capitalization of 20 million $ and a loyal consumer/fanbase. But not all was going well for the budding cryptocurrency. In 2015 Jackson Palmer left the initiative, as he had been unhappy with the way dogecoin was being used by the community and the behavior that had cropped around it, rebuking it as “toxic.”
Prospects started to look good when 2019; Dogecoin witnessed a rise in value as part of the wave of the crypto boom. Crypto exchange giant Binance listed the coin, making many Dogecoin enthusiasts and investors delighted about an increase in value and importance. It also was supported by Elon Musk’s tweets which hinted at him endorsing the crypto.
Impact of Dogecoin on Bitcoin
Bitcoin enabled by blockchain
Bitcoin was started in 2009 as a very serious and well-detailed cryptocurrency. It was meant to be used like gold to hedge against inflation, acting as an independent currency. It had a more “professional” community, to put it in simple terms.
Dogecoin, on the other hand, was more of a joke. Still, it did call for the need to make bitcoin more optimized or create another cryptocurrency that is appealing for individuals who are just dabbling in cryptocurrencies.
Despite all this, experts still classify Bitcoin and Dogecoin as risky currencies and investments, seeing as highly volatile.
Mike Novogratz, a crypto bull and CEO of Galaxy Digital told CNBC, that he fears that once the enthusiasm runs out, the currency will stagnate or just crash but in no way does he mean to discredit the creators.
Dogecoin’s Decline and the Future
Starting in April, the cryptocurrency began making headlines again. It started to move into a downside later in the month, reducing by 30 percent from April 20 to April 22. On Monday, April 19, Dogecoin’s price in rupees had crossed Rs 32 but came down to Rs 23 on Wednesday, April 21.
The crypto hit headline numbers by soaring to a record high of 50 billion $. But after the slump, it dropped to 45 billion $, according to coinmarketcap.com. On the other hand, Bitcoin still retained its high market cap of more than 1 trillion $, making it the most popular cryptocurrency in circulation.
On May 8, in an appearance on SNL, Tesla and SpaceX CEO Elon Musk made some statements about Dogecoin. These captured market sentiments in a very anti-climatic manner and drove the price down from the high it had reached in the build-up to the show. A third of the currency’s value was rendered worthless.
But Elon did become the gracious savior by posting a tweet regarding sending a literal meme to space funded by a meme, which drove the market up to the value of 0.50 $ and stopping the price landslide.
Renowned cryptocurrency site DigitalCoinPrice gave a figure of 1$ to Dogecoin’s value in the early months of 2022. For 2021, they reached 0.91$ for December.
In contrast to the other prediction, CoinPriceForecast has a more optimistic view and expects the value to rise 3$ by the end of 2021.
As of May 12, 2021, Dogecoin’s price indicates signs of an upswing from $0.397 to $0.451. If this trend stays in motion, we can expect DOGE to go up to $0.697 and $0.740.