Maybe Dogecoin isn’t the funniest joke of all time, but it’s probably the most valuable. Billed as the first “memecoin,” Dogecoin‘s market cap hit $90 billion in early April after retail investors flocked there in search of towering yields. If a year ago the market capitalization of 315 million USD used to make many people laugh, now the 90 billion USD level is more confusing than ever.
What is Dogecoin?
The Dogecoin.com site offers a joking definition: “Dogecoin is an open source peer-to-peer digital currency, favored by Shiba Inus worldwide.” But what is it? This is a digital currency created in 2013 by software engineers Billy Markus and Jackson Palmer, inspired by a photo of a Shiba Inu dog, a dog breed that is considered Japan’s “national dog” and appears in many Photographs on the Internet.
What is a joke?
2013 was the time when Bitcoin stepped out of the world of tech geeks to become more widely known around the world. Meanwhile, the Doge meme uses a photo of a Shiba Inu dog from 2010, often associated with grammatically incorrect sentences. “I’m half detached, but it’s weird that something I made in a few hours is now part of internet culture,” Murkus told Bloomberg in a February interview.
Why did the price of Dogecoin increase so much?
Amid a spike in interest in the cryptocurrency market in general and the trading of financial assets in general, Dogecoin seems to be waiting there for individual investors to “unearth”. Sam Bankman-Fried, founder and CEO of crypto derivatives exchange FTX, said that after the Robinhood app restricted trading in GameStop stock, “hundreds of millions of dollars moved seamlessly.”
On April 20, Dogecoin had a big push when it was inflated to 42 cents, 69 cents, even 1 USD. Then the price dropped more than 25%.
Who is blowing the price of Dogecoin?
Dogecoin has attracted many “fans” of celebrities, most notably Elon Musk and Mark Cuban. Musk posts on Twitter everything from a discussion about setting up “Dogecoin mining facilities” with his kids to a picture of a $1 bill with a picture of a Shiba Inu dog. On the other hand, Musk is also the one who caused the price of Dogecoin to plunge after comments on NBC.
What else drives the price of Dogecoin?
Bitcoin price surge also created a craze for other cryptocurrencies, and Dogecoin is no exception. And when the Bitcoin price crosses $60,000, that’s even more true. However, there is also the idea that Dogecoin itself increases in price, not a follow-up fever. In the new world of cryptocurrencies, the older something is, the more reliable it is. Since Dogecoin was born in 2013, it can be considered as the “old man” of the digital currency world.
Can Dogecoin be used to buy real goods?
Since Mark Cuban is the owner of the Dallas Mavericks basketball club, the team accepts Dogecoins for tickets and team-related merchandise. A satellite launch related to Elon Musk’s SpaceX was paid for in Dogecoin. Although few, some places accept Dogecoin.
What is the risk?
Investors, especially those who are new to the market, will not understand cryptocurrencies very well and may run out of money. Besides, there are security issues and questions around the development roadmap as well as the applicability of Dogecoin.
Who is making money from Dogecoin?
The price of Dogecoin has fluctuated wildly, but anyone who holds Dogecoin for a few months has already made a profit because at the beginning of this year its price was only about 0.5 cents! Of course, those who bought at the top will now lose.