It started off as a joke and is now considered a serious asset on the market – the story of the Dogecoin is certainly inspiring, albeit surprising. Like Bitcoin before it, Dogecoin is a form of cryptocurrency. However, Dogecoin started out as a parody of the former; a jibe that was intended to make fun of the original digital asset and all the subsequent cryptocurrencies it inspired.
Based on an internet dog meme, Dogecoin was created by software engineers Jackson Palmer and Billy Markus in 2013. The pair devised the satirical currency poking fun at the hype over cryptocurrencies, such as Bitcoin, at the time.
However, despite its jovial beginnings, the so-called ‘meme coin’ has gone on to become one of the most lucrative cryptocurrencies for investors. So, is the meme coin more than just a meme? Read on to find out.
Contender to Bitcoin
Dogecoin has grown from a joke concept into emerging as a serious contender to the more established cryptocurrencies, such as Bitcoin. But how exactly does Doge compare to the original crypto coin?
Unlike Bitcoin, which has a fixed supply of 21 million coins, the number of Dogecoins that can be created is unlimited. With more than 129 billion Dogecoins in circulation and around 10,000 of them minted every minute, the meme coin’s circulation supply is infinite in comparison to Bitcoin’s.
There are several factors of Dogecoin that make it more attractive to traders, particularly those who are new to investing. For instance, whilst Dogecoin utilises the same technology as Bitcoin to verify payments, transactions are faster and cost less. Moreover, Dogecoin doesn’t use the same blockchain technology as Bitcoin that can be seen as confusing and intimidating for first-time investors. This makes Doge much more accessible and a good starting investment for those who are new to the crypto market.
Many high-profile people have publicly acknowledged Dogecoin, which has had a huge influence on the digital currency’s market value and credibility, and encouraged more investors to trade Doge. Tesla billionaire Elon Musk famously tweeted that Dogecoin would be the currency used on the moon and the SpaceX founder has continued to reference the digital coin in a positive manner.
Billionaire investor Mark Cuban has also endorsed the use of Dogecoin, admitting recently that he purchased the currency for his son and comparing it in a tweet to a lottery ticket.
Last year, Dogecoin’s value increased by more than 55% in the space of 24 hours after two high-profile musicians tweeted about the digital asset. The digital currency at this point had already been endorsed by Musk several times and was rising in popularity when Snoop Dogg and Gene Simmons got on board. Rapper and songwriter Snoop posted a meme depicting the coin’s image, while the Kiss frontman tweeted a photo of himself captioned ‘God of Dogecoin’. Within a day of these tweets, the digital asset leapt four spaces to number seven on the list of most valuable cryptocurrencies.
A few months later, Musk tweeted about Dogecoin again, prompting the value of the digital currency to rise by 11%. By the end of last year, Dogecoin spiked again after Musk announced that it would be accepted as a payment method by Tesla.
Tesla’s acceptance of Dogecoin as a payment method is a huge milestone for an asset that started out as a parody. Indeed, many companies are following Tesla’s example and are now also adopting the digital coin.
House of Dough, a pizzeria in Nova Scotia, is just one of the most recent businesses to announce it would accept Dogecoin as payment, but there are currently thousands of other establishments embracing the meme coin. More than 1,000 online retailers, including over 200 fashion outlets, accept Dogecoin. It’s also accepted by gambling and gaming platforms, travel and tourism firms, various business services including web development, marketing, and video production, and many, many more. Furthermore, the Dogecoin is currently a shirt sleeve sponsor of Premier League football club Watford.
Could Dogecoin’s boost in popularity and use mean that it could potentially rival Bitcoin? It’s certainly conceivable.
With Dogecoin’s sudden rise in popularity, it’s perhaps unsurprising that the currency has inspired a host of other meme coins. Dogelon Mars, Woof, Samoyedcoin, and MonaCoin are just a handful of the many emerging digital currencies based on animal memes.
Perhaps the most well-known, however, and arguable Dogecoin’s biggest rival, is Shiba Inu. Based on the same dog meme that Dogecoin was inspired by, Shiba Inu has rapidly emerged as one of the strongest-performing cryptocurrencies on the market in the space of just two years. Having only launched in August 2020, Shiba Inu coins are now held by more than a million investors. With a massive 240% soar in value within a week at the end of last year, Shiba Inu is showing to be a strong contender to Dogecoin as the meme coin to invest in.
To go from a light-hearted joke to a serious investment opportunity is certainly an impressive feat. Despite its jocular beginnings based on an internet meme, Dogecoin is now considered to be an accepted payment method by many retailers. The meme coin has also seen massive boosts in its value and credibility due to endorsements by several highly-esteemed celebrities. If more influential people continue to praise the Doge, it can only be assumed that its value will soar further. With these elements in mind, it’s safe to say that Dogecoin is more than just a meme.
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