What Is Dogecoin?
It is a fact that virtual currency provided the world with an alternative to fiat currency. But what to do when alternative currency starts slipping from the hands of people due to higher prices and lower stock? Dogecoin, with its cheaper rate and unlimited supply, is a perfect response to this mind-boggling question.
Dogecoin “DOGE” is an open-source cryptocurrency that works using the Scrypt algorithm. Like most cryptos, Dogecoin facilitates peer-to-peer payments across decentralized blockchain technology.
Because of its broader reach and community-driven approach, digital currency is preferably used for online tipping. Lately, this cryptocurrency has made news for many good reasons. Want to know more about dogecoin price prediction and how to invest in Dogecoin and its future? Look no further than this detailed post.
What Is The Story Behind Dogecoin And Its History?
As remarkable as the philosophy of Dogecoin, so is the story behind its origin. In 2013, marketing professional Jackson Palmer and computer programmer Billy Markus came in contact with each other over the unique idea of creating a fun cryptocurrency. Here fun means developing a virtual asset that is less of pain from the angles of accessibility and public welfare.
While the credit for ideating Dogecoin goes to Markus, Palmer turned it into reality by launching Dogecoin.com and giving it the much-needed identity. Since Dogecoin was supposed to be fun, its developers turned to the Internet and discovered the Doge viral meme that was nothing but the facial expression of Shiba Inu, the Japanese rescue dog. They found it funny and adopted it as the mascot or logo of Dogecoin.
At the time of its launch on December 8, 2013, Dogecoin supply was expected to be capped at 100 million. The limit was, however, removed later, making Dogecoin supply infinite. For its use of the Scrypt algorithm, Dogecoin is considered the forked version of Litecoin.
To everyone’s surprise, the altcoin registered a growth of 300% within 72 hours of its launch, followed by theft of millions of Dogecoins at the hands of hacking. After getting a glimpse of its features, let us find out the reasons behind its growing popularity.
Why Is Dogecoin Gaining Popularity?
Dogecoin is extremely popular among its community for tipping the creators for their content or idea on various social media platforms like Reddit and Twitter. Also, the Dogecoin community is actively involved in fundraising activities. Simply put, whenever humanity is in need, the Dogecoin community is always among the firsts to reach out. Moving further, various market events, word-of-mouth advertising, and online trends help it gain traction, such as:
- Within a day of being listed on the cryptocurrency exchange Huobi in 2018, Dogecoin amassed $20 million in trading volume, making Huobi the third biggest Dogecoin market.
- Tesla CEO Elon Musk keeps supporting Dogecoin from time to time by saying it is his favorite coin.
- The promotional campaign #Dogecoin Challenge ran by TikTokers in July 2020, urging followers to invest as little as $25 in Dogecoin, helped Dogecoin grow in value.
Why Now People Are Looking To Invest Or Buy In Dogecoin?
The value of Dogecoin has gained momentum since the beginning of the year 2021. It rose by 800% in January following Reddit forum SatoshiStreetBets where users debated the conversion of Dogecoin into the counterpart cryptocurrency of GameStop.
The price went up further after Musk made tweets endorsing the virtual currency. Then there is the fear of missing out on the most popular cryptos due to their soaring prices and limited supply.
Although there are no clear reasons why to invest in or buy Dogecoin, the recent trend, where it is all set to overtake Litecoin, is making people invest their money buying it.
What Is The Easiest Way To Buy Dogecoin?
Anyone can buy Dogecoin from leading crypto exchanges, such as Binance, Bitpanda, Huobi Global, and Kraken, and store it in a Dogecoin wallet for trading or tipping. These exchanges support multiple payment methods to facilitate Dogecoin purchases, including credit or debit cards, wire transfers, and e-wallets. Of these, credit or debit cards are the easiest way to buy Dogecoin for faster processing time.
How To Buy Dogecoin With PayPal?
Because of the increasing incidence of PayPal users claiming their money back from the e-wallet provider, PayPal payments are accepted by only a few crypto exchanges. However, a way out of the situation is first buying Bitcoin from a peer-to-peer crypto exchange like LocalBitcoins that accepts PayPal, and then trading it for Dogecoin at any other crypto trading platform.
Future Of Dogecoin
A couple of factors that can drive the adoption of Dogecoin in the future are its unlimited supply and incredibly cheaper rate. With uncapped supply, Dogecoin becomes more of a liquid and less of a speculative asset. The low price gives people confidence in holding their coins while allowing them to trade or use them as an inflationary fiat currency.
Conclusion
Dogecoin is now the most talked-about cryptocurrency after Bitcoin due to billionaires like Elon Musk showing interest in it. Though it has a passionate community that engages in charitable causes, it is the affordability and accessibility that make Dogecoin the cryptocurrency of people.
