Dogecoin future; Is Dogecoin a good investment?
2020 was the price explosion year for cryptocurrencies. All of a sudden a random 1 dollar coin turned into a 100 dollars valuable crypto; an enormous growth drew the attention of a lot of big and retail investors. One of these coins with an unbelievable growth was Dogecoin; A crypto with nothing in behind and only supported by the millionaire Elon Musk. But Does it really have a bright future?
What is behind Dogecoin?
Billy Markus and Jackson Palmer, the founders of Dogecoin, came up with the idea of this meme coin when they agreed that cryptos’ efficiency has been exaggerated and can not be as fascinating as the Bitcoin lovers are claiming. So they brought Dogecoin to the game to humiliate the whole market in 2013.
But the first 2 weeks were surprising for them. Not only was the 300% growth shocking to them, but also the number of transactions in Dogecoin network was much more than Bitcoin’s!
Dogecoin at first was popular among Reddit and Twitter members for rewarding per activities. While the founders wanted Dogecoin to mortify Bitcoin, it changed its path to benevolent affairs. Right now Dogecoin foundation is working with famous youtubers Mr.Beast and Mark Robber to donate for cleaning the coast from 30 pounds of garbage. But generally Dogecoin is accepted as a payment method like Bitcoin.
Bitcoin and Dogecoin Network Differences
Dogecoin was established at first by Billy Markus by using a code of “Luckycoin” which was a Litecoin Fork while Litecoin itself is a Bitcoin Fork. It means that all of these 3 coins use the same consensus mechanism which is Proof of Work. But the main difference is in the technologies they use.
Bitcoin uses SHA-256 as hash function while Dogecoin uses Scrypt that uses less energy. The other benefit (which further became a disadvantage) is the unlimited amount of Dogecoin which makes the mining process easier for the miners. This unlimited Dogecoin supply amount makes this coin fluctuating which can not be a good coin used as a payment method. On the other hand, it rewards the miners millions of Doge daily which makes the price growth hard to occur.
Is Elon Musk Doge’s father?
After the fanfare happened in 2020 in crypto market, Elon Musk, SpaceX Ceo took the best out of the situation and in a twitter thread announced that he has a passion for Doge and tried to encourage his fans and crypto community to buy Doge using “Doge to the Moon” and “People’s Crypto”. Even he mentioned that in the SpaceX plan for traveling to the moon, he wants to take a Dogecoin physical coin and plant it on the moon.
He put his foot even further and in 2021 he announced that he has bought an enormous amount of Doge (he never said how much) and it had a great impact on Doge’s price and even it gained the trust of the people to buy Doge. With all said above, Dogecoin reached the 6th spot among the top 10 coins with the most market cap. At first, Doge was not worthy but after Elon’s tweets and his purchase announcement, Doge’s price grew to 70 cents which was a blast! But at the time of writing this article, Doge is 0.0589 dollars due to the awful fall in cryptos’ price.
Dogecoin Future
Future is hard to predict but if you want to have an approximate estimation about Dogecoin’s price in future (or any other cryptocurrency in general) you must first know how to analyze the market to have a close to exact forecast. Although famous people’s tweets had a great influence on the market, it can not last forever and these cryptos follow some specific rules to grow or not.
How to buy Dogecoin
To trade Dogecoin, Like any other Cryptocurrencies, you have to connect your wallet to a valid exchange and start trading. Dogecoin wallet has a physical and digital type which you can download the digital ones from Bonti Appstore.
Last words
At first, Doge was presented as a humiliation to the world of Crypto, but later the community understood that the purpose can be charity affairs. But with all said, never stick to famous people’s desire in this fluctuating market; because they have whatever is needed to retrieve the loss.
