Dogecoin, only started as a meme, but is currently one of the cryptocurrencies whose value has skyrocketed, but will Dogecoin crash?
Dogecoin holders at this point will be delighted to see the crypto asset soaring. It was so high to form an all-time high of $ 0.64.
Even Dogecoin is currently ranked 4th on Coinmarketcap with a market capitalization of more than 78 billion USD. That’s only 20 billion adrift compared to BNB (Binance Coin).
Currently, the total coins in circulation reach 129,489,119,200 DOGE, while there is no maximum supply like Bitcoin which is only made up to a maximum of 21 million blocks.
Work from home CFD, forex trading online with TenkoFX
TenkoFX broker regulated by IFSC Belize
Open an account or try Demo account.
Contents
What is Dogecoin?
Perhaps no one would have thought that Dogecoin was just a joke at first. Takes from a dog meme named Shiba Inu, which is a meme, but later it becomes the Dogecoin logo.
Dogecoin was invented by Billy Markus who was a software engineer. Who had the idea to create a cryptocurrency for a payment system that is free of fees from traditional banking fees.
To achieve this, Mark then found Jackson Palmer, who worked for Adobe (ADBE). Palmer bought the dogecoin.com domain, which refers to “doge” memes all over the internet at the time.
The Shiba Inu dog mascot is given the title: “Dogecoin is an open-source peer-to-peer digital currency, favored by Shiba Inus around the world.”
Although it started out as a joke, Dogecoin’s popularity is now soaring and is partly supported by the mainstream adoption of bitcoin and other cryptocurrencies.
How did Dogecoin start?
The Dogecoin cryptocurrency was started by Billy Markey, an IBM software engineer in collaboration with Jackson Palmer, an Adobe engineer.
They both deliberately made the Dogecoin logo as unique as possible, unlike the futuristic logos in the style of Bitcoin or other cryptocurrencies.
Both then chose to use the face of a Shiba Inu dog as the Dogecoin logo. The reason is simple because Shiba Inu was famous for being a popular “Doge” meme in the 2013s.
The meme “Doge” depicts a Shiba Inu dog surrounded by some text in the colorful Comic Sans font. The text is inscribed with a monologue of the inner voice in response to something. That’s why Dogecoin is unique from other cryptocurrencies.
How does Dogecoin work?
Dogecoin like Bitcoin is a cryptocurrency that can be transacted peer-to-peer without third-party intermediaries.
How to make Dogecoin transactions using a wallet either via a computer, smartphone, and the Dogecoin website. No need to worry bcause Dogecoin supports various operating systems both Windows, Mac OS X, Linux, iOS, Android, and Blackberry.
All users allowed to buy goods and services and can even exchange them into other currencies. Dogecoin can be exchanged for Crypto or other flat currencies such as USD.
The unique features of Dogecoin include tipping among internet users. It serves the purpose of rewarding content creators who have created useful content.. The Dogecoin community referred to these tips as more tangible, cashable likes. So that the money can be used by creators for real transactions.
How dogecoin is mined?
Like most cryptocurrencies, Dogecoin is mined via a computer network where miners will be rewarded for completing a transaction. The miner, in this case, is a special mining device, must be able to crack complex codes to verify transactions. Successful miners will be rewarded with a number of Dogecoin.
In order to store Dogecoin, a miner must have a wallet for Dogecoin. Since there are a lot of miners in the network, they have to compete to be the first to add a new block of transactions to the old block of transactions, it is he who is entitled to the reward.
The mining feature that makes Dogecoin different is that the mining speed is only 1 minute, which is much faster than Bitcoin mining. There is basically no limit coin but it will be doubled over 20 years. Dogecoin has the ability to ‘issue’ 10,000 tokens per 60 seconds, this is much different from Bitcoin which requires a longer time and a small number of tokens.
Dogecoin is equipped with a Proof-of-Work (PoW) algorithm like most other tokens, as well as the Scrypt protocol which provides miners with machine options and a less expensive graphics card.
How Dogecoin became so popular?
The popularity of Dogecoin has increased sharply in 2021, there are several reasons why Dogecoin could become a popular cryptocurrency and experience a surge in price. Some of these reasons include the following:
- Dogecoin is in the Reddit community, which is a forum with members ranging from beginner investors to even professional investors.
- The viral Tik Tok video, a surge occurred after Tik Tok user “James Galante” with the username jamezg97 posted a video titled “Let’s All Get Rich,” inviting viewers of the video to invest in cryptocurrency and this effectively illustrates what appears to be a pump scheme. “Let’s all be rich! Dogecoin is practically worthless. There are 800 million TikTok users. Invest only $ 25. Once the stock reaches $ 1, you will have 10 thousand [$ 10,000]. Tell everyone you know, “he said.
- Elon Musk, CEO of SpaceX and Tesla, in a tweet has insisted on promoting Dogecoin as his favorite cryptocurrency over Bitcoin and thinks Dogecoin will soon sweep the global financial system.
Dogecoin is going to the moon
Elon Musk has been interested in Dogecoin for a long time. He was even nicknamed Dogefather because he often made Dogecoin prices go up high.
Most recently, Dogecoin’s price hit a new all-time high on April 5, 2021, breaking over $ 0.65.
However, many experts say that Dogecoin lacks fundamentals. Even so, Elon Musk managed to become a supporter of Doge with the slogan ‘going to the moon.
Musk also often shares memes of himself as the father of the dog Shiba Inu which is the logo of Doge.
In 2020, Musk said that Dogecoin was his favorite cryptocurrency. Since then, Doge’s demand has grown rapidly. Elon Musk’s tweets on Twitter often affect Dogecoin’s price. That tweet made Dogecoin jump 50% in 2021.
Dogecoin Elon Musk Twitter
Through his tweets on Twitter, it is often a concern of crypto fans, it is mostly because he is one of the richest people who own a Tesla motorbike and SpaceX.
Because he really likes Dogecoin, even though the reason is simple. Because he likes dogs and memes. Then crypto fans following his footsteps and bought Doge. The result which in turn causes the price to skyrocket.
He once drew a Dogecoin image with the slogan, a dog barking at the moon.
Doge Barking at the Moon pic.twitter.com/QFB81D7zOL
— Elon Musk (@elonmusk) April 15, 2021
In an earlier tweet, Elon Musk shared an image of a large dog against a large area of land in the background, accompanied by the inscription Dogecoin the global financial system standard.
It’s inevitable pic.twitter.com/eBKnQm6QyF
— Elon Musk (@elonmusk) July 18, 2020
Elon Musk has been passionate about Dogecoin since 2018. When he recruits Dogecoin creator Jackson Palmer to help him stop several crypto spambots, some of whom were posing as himself.
On April 2, 2019, Dogecoin made a poll on Twitter. Looking the most suitable to become Doge’s CEO among several names. They namely, Vitalik Buterin, Charlie Lee, Marshall Hayner, and Elon Musk. In the poll, Musk won with 54.4%.
Is Dogecoin a good investment?
Maybe at this time, the Dogecoin trend will still be more and more interested in investing in Dogecoin because the potential profit could reach 12 thousand percent in 2021.
With the support of Elon Musk, the Dogecoin community feels confident that the value of Doge will be able to reach $ 1, where currently the Doge price has reached $ 0.72.
According to the founder, Dogecoin is designing will only have a low value. This is different from Bitcoin which has a total supply of only 21 million blocks.
The increase in Dogecoin’s market capitalization has been higher, reaching 93 billion USD, a very fast increase which previously was still at 84 billion USD.
Analysts say the Dogecoin price hike comes amid investor and trader interest ahead of Elon Musk who will host his Saturday Night Live TV program later this week, given the billionaire’s public support on Twitter for Dogecoin and his potential appearance on US TV shows. being popular will raise Dogecoin’s profile even further.
Musk figure is also known as Dogefather. Which he has a sketch of a cryptocurrency that might go viral and motivate his followers to try to raise Dogecoin to the moon.
Will Dogecoin Crash?
Perhaps in the early days of designing Dogecoin, Palmer never expected that from a joke, but then got an overwhelming response from the public.
A Dogecoin holder who already trades and owns the Doge may now have an asset with a much higher value than when he first bought it. There is even an anonymous claiming to have assets of 1 billion USD in the form of Dogecoin.
But on the other hand, analysts say, that the potential upside of Dogecoin will eventually reach saturation point. When prices got really high, and some of the biggest doge’s owners were selling at a profit. It could spark a global panic as other investors will start to follow suit to sell Doge for profit.
What is of concern are the bubble and burst events. After which the price breaks into a very low drop. What the analysts say is that Dogecoin has no fundamental intrinsic value, it could just be like the tulip phenomenon and the Bitcoin bubble.
They suggest investing in Doge by giving a low portion, not all of the savings, to buying Dogecoin.
Dogecoin price chart
Bitcoin price on May 8, 2021, has risen 15.54% at $ 0.7087, this continues the bullish trend after previously having dropped to the level of $ 0.5550.
Daily volume at a time when the press also increased by 24% to a total of more than 27 billion USD, this increase may have been triggered by Elon Musk who was on the TV show.
Meanwhile, the market capitalization value increased by 16% to almost 92 and a half billion USD. Seeing the increase in daily volume and market capitalization of Dogecoin is becoming an investment trend.
Dogecoin’s steepest increase in price began in April 2021 when it was low at $ .0.0642. Since then the price has rapidly climbed to a high of $ 0.376 on April 16th. Then the price fell again to $ 0.243 the day after.
After that, the price went up again and landed at $ 0.392, then fell again at $ 0.217 on April 23. But since then the price has increased gradually and significantly, forming a new high at $ 0.668 on May 5, 2021.
Dogecoin buy Malaysia
Malaysian Dogecoin fans can buy Doge through an exchange that supports Doge. There are many popular exchanges supporting Doge. So this is actually an easy step with more varied options.
The first of course is to find an exchange that supports paying with Malaysian flat money.
In this case, you can use the Luno exchange, using either Android or IOS. The second step is to buy some crypto such as BTC to your Luno wallet account.
After that, you can use the BTC to transfer to Binance, through the Binance platform you can buy Dogecoin using BTC.
Some other exchanges that allow buying Dogecoin include, for example, Okex, Crypto.com, and a Coinswitch.
Dogecoin forecast
Refers to increasing growth in market capitalization, and increased daily volume. This is one of the reasons for the value of Doge in 2021. Could reach more than $ 1 by the end of 2021. The forecast refers to Cryptonews which predicts Doge’s price this year.
The forecast for prediction 2022 may reach $ 1.2, predict 2023 to reach $ 1.43. 2024 prediction can reach $ 1.74.
On the other hand, the Digitalcoin price predicts the increase in the value of the Doge will occur from year to year. An estimated highest price will fall in 2028 with a prediction of reaching $ 3.3.
Other forecast sites like Wallet Investor also predict Doge’s price will slowly rise. It’s also in line with crypto-ratings or long forecasts.
Final thought
Crypto investing is a type of risky investment, predictions can miss the truth. An investor, even though he has a high self-confidence. Will be the possibility of future prices, but that does not mean the risk will disappear.
As a matter of caution is only to spend money that is willing to lose, this is wise investment advice. Because it may be that the prediction about Dogecoin crashes becomes a fact.
Ready to start trading? Open an account or try Demo account.
Read more article
