We are at that juncture now where the cryptocurrency world has started weighing on the economic equations in a demand and supply narrative. Would one choose Bitcoin which is the highest in value and limited in supply, or opt for Dogecoin which is unlimited in supply but nowhere near its exalted cousin in value?
The comparison might not hold any water at this point of time. But the statement made by Elon Musk, the self-proclaimed Dogefather and owner of SpaceX, about accepting Dogecoin for a satellite launch on the moon indeed holds great significance for investors and stackers of the meme-based crypto. Musk’s frequent tweets about Doge have led people to believe that he is the founder of the coin. However, belying popular belief, Elon Musk is not the founder
Journey of Dogecoin
The genesis of Dogecoin in December 2013 lies in the sarcastic approach of the founders, Jackson Palmer and Billy Markus to create a payment system based on a joke, making fun of the wild speculation in cryptocurrencies at the time.
It all started with a tweet from Palmer, a software engineer of good standing in 2013. He tweeted — “investing in Dogecoin, pretty sure it’s the next big thing”. Palmer was later joined by another innovator Billy Markus who was working with IBM. They both founded Dogecoin. Whether it remains a sarcastic meme coin or not, Dogecoin is taking great strides in the world of cryptocurrencies.
The price of Dogecoin was unpredictable but it went spiraling upwards to reach over $1 billion market capital by January 2018.
Dogecoin has an incredibly active and supportive community with participants known as ‘Shibes’ who have engaged in a number of social causes and fundraisers.
Since it is an open-end source, Dogecoin reportedly has a circulating stock of 118 billion presently after an initial supply of 100 billion coins in 2015. Sheer numbers can be a tipping point sometime in the future for Dogecoin considering Bitcoin has capped its production at 21 million.
Dogecoin is built from fine-tuning open-source code. Doge’s followers say investing in it when it is in good stead can be very fruitful.
Dogecoin’s large user base and stability
Dogecoin has a large user base. It is used as a currency and not as an asset. Stacking up Dogecoin is not as heavy as others in investment. This is why Dogecoin is in larger circulation than any other crypto. For the more serious and large volume holders, Dogecoin can surely be an investment for a definite return.
The endorsements and testimonials from celebs such as Elon Musk, Mark Cuban and rapper Lil Yachty have pepped up the popularity of Dogecoin considerably. However following another statement of Musk that “popularity of Dogecoin was a hustle” there was a slight dip in its fame but it was short-lived. This shows that Dogecoin is here to stay. It was again Elon Musk who took it up when he announced his SpaceX plans.
However, investors will be more confident when the Dogecoin reaches the value of $1. Chairman of the Wallstreet Bets tweeted in hope “Has Doge ever been to a Dollar?”. But none of the tweets from the masters of the market had any long-term effect on the popularity of Dogecoin. One can definitely say, it is the most stable coin in value and volume in circulation.
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