By Daniel Klink
Although its news was spreading as jokes on social media platforms, this meme-inspired cryptocurrency rose by 23% after Elon Musk’s tweet saying that his company, Tesla, would accept this currency’s payments for some of its products.
“Tesla will agree to accept Dogecoin payments for some merch and we’ll see how it goes,” the world’s second-richest man and the CEO and co-founder of Tesla and PayPal. Although other investors and well-known businessmen, like Bill Gates, prefer to preserve their capital in software or physical assets, Elon Musk is entirely different from them. Every time Musk talked about the Dogecoin, he was serious, calling it the Mars’ currency and his favourite one!
He justified his enthusiasm for this coin, saying that it will make decentralised Finance (Defi) more accessible to everyone. Indeed, at the current time, this fledging coin has found its way in many modern industries, like trading cryptocurrencies pairs, investing in innovative early-stage startups, and online gambling. Specifically, the online casino games industry is the most attractive to Dogecoin users, as players who have no prior experience or gaming skills can gain big Dogecoin profits from these fast-paced games.
Quick Overview of Dogecoin
This coin began in 2013 as a joke by its co-founders, Billy Markus and Jackson Palmer, in which they used the name and photo of the famous Meme Dog Doge, a real dog of the Japanese Shiba Inu breed. His image is widely used on social media to express amazement at a funny situation or express surprise or admiration for something.
Since Elon Musk is considered by many to be the godfather of daring investing in the modern era, his tweets prompted many amateur cryptocurrency investors and cryptocurrency disciples to speculate on this fledgling currency, which led to its price soaring!
At the beginning of 2021, Dogecoin was not worth more than a penny. However, it reached 74 cents in May of the same year, yet it lost more than 70% of its value to stand at 20 cents. Of course, as you know, cryptocurrencies do not have a circuit breaker to prevent them from declining further or repositioning them again. If the coin falls to zero, nothing can help it rise again except there is a strong demand trend.
Some investors believe that Dogecoin surging price is a fad similar to GameStop and AMC and should not be taken lightly.
Even within the cryptocurrency community itself, the CEO of famous crypto firm Ripple told CNBC, “I’m not convinced that dogecoin is good for the cryptocurrency market; it simply makes it less mature and less trustworthy.”
Since Dogecoin originally started as a joke on social media, the banter is not over yet. This fledgling coin has found a competitor that describes itself as the “Dogecoin Killer!” At the moment, this coin is ranked 13th in terms of crypto market capitalisation, but it managed to overtake Dogecoin for a short period, which proves the view of the other team that believes that social media will compete on the fringes of the cryptocurrency scene but will not achieve mainstream use yet.
What Is the Dogecoin?
Dogecoin (DOGE) is a digital peer-to-peer exchange based on blockchain technology and is open source so that developers can build their applications on it. This coin was launched in December 2013 and is always represented as a gold coin bearing the image of the Shiba Inu dog with his surprised face.
Although it was originated as a joke, it is based on the blockchain technology branched from Litecoin. One of the most prominent features of Dogecoin is that it uses the Scrypt algorithm, which makes its price low, and it can be mined infinitely.
Due to its humorous nature and low price, this currency may be adopted in social media applications and simple games. It could gain popularity among young players and teens, but it is unlikely to go further, at least in the near future.
Dogecoin started as a joke at first, but by the end of 2017, it benefited from the significant rising trend of all cryptocurrencies, but with the bursting of this bubble in 2018, Dogecoin lost a lot of its value. However, many enthusiastic investors still promote it and share its news on Twitter and Reddit.
Users can buy and sell Dogecoin through cryptocurrency exchanges, e-wallets, and crypto gates. In addition, they can choose to store Dogecoin on an exchange or in a crypto wallet.
Australian programmer Jackson Palmer, his partner Billy Markus and Jackson Palmer created this coin to mock the hype associated with cryptocurrencies. Both partners were sceptical about cryptocurrencies and thought it was not the ideal way to invest in the future. However, this coin gained popularity on social media thanks to its lovely logo. This unexpected rise prompted the two programmers to purchase the dogecoin.com domain and take their invention seriously! Just two weeks after its launch, its value jumped by 300%, but it could not hold its gains for long and fell again by 70% shortly after.
The Rise of Dogecoin
From a marketing point of view, Dogecoin, undoubtedly, got off to a strong start thanks to its proximity to young and teenage social media users. With the Shibu Inu (Japanese dog) logo, this coin has gained a lot of traction since it was launched. The presentation of this coin has suited a large segment of the burgeoning crypto community. In addition, this currency, unlike Bitcoin and Ethereum, is based on unlimited supply, which makes it user friendly, cheaper and faster to adapt.
Exactly as you think, Dogecoin is an inflationary currency, while other currencies are deflationary. For example, every four years, the unlocked amount of bitcoin is reduced. On the contrary, an unlimited number of Dogecoin can be released.
In January 2014, Dogecoin users donated 27 million units ($30,000) to fund the Jamaican bobsled team’s trip to the Winter Olympics. In the same year, users of this coin donated to build a charitable well in Kenya.
The total market capitalisation of this coin is up to $20 million, and it has a loyal user base.
About the Author
Daniel Klink is the marketing manager and director of content of arabcasinohex.com. The primary goal of Daniel is to provide useful, high-quality marketing content for all readers and increase cultural awareness of virtual play and how the casino experience can offer quality pastimes for all types of players.