Cryptocurrencies such as Dogecoin, Bitcoin, and Etherum, have become a hot topic and a hot commodity in the past few years. As a result, many investors are looking to snap up any cryptocurrencies they can find. They’re hoping to make a little money or even find the next big cryptocurrency and make their millions.
Many novice investors go for the most well-known cryptocurrency, Bitcoin; however, with prices skyrocketing, you will likely not become a millionaire with Bitcoin anymore. These Bitcoin prices are why investors are looking towards newer or rising cryptocurrencies, such as Dogecoin.
Dogecoin was initially considered a “joke” or “meme” cryptocurrency, but Dogecoin is no joke anymore. Predictions have the coin reaching $10, which would put its value at $1.32 Trillion.
This article will take a look at Dogecoin, where it started, and where it’s going.
1. What is a cryptocurrency?
Cryptocurrency is a digital or virtual currency, most often based on blockchain technology. It doesn’t need any tie to a specific country or organization, meaning it is largely immune to government oversight or interference. The official “ledger” of who owns how much is decentralized and kept accurate by various independent computer systems. No single bad entity can make invalid changes without the rest of the network knowing and disputing those changes. The currency is also encrypted, making it near-impossible to counterfeit.
2. What is Dogecoin?
Dogecoin is a blockchain-based cryptocurrency, originally based on the exact code that was publicly available from Bitcoin. Anybody can take the code and make their own cryptocurrency which is what Dogecoin did.
Dogecoin is now the 5th largest cryptocurrency available.
3. What is Bitcoin?
Bitcoin is THE decentralized digital currency based on blockchain technology. It was created in 2009 by an unknown entity going by the name of Satoshi Nakamoto, and it is unknown who this is or if it’s a group of people.
Bitcoin was the first cryptocurrency to have success and currently stands as the world’s largest. Many other cryptocurrencies used Bitcoin as their original codebase and followed on the coattails of its success, including Dogecoin.
4. Is cryptocurrency regulated by the government?
Cryptocurrency, in general, is not regulated by the government. Attempts to do so would be difficult because, technically, you do not have to provide any identifying information when buying or selling most cryptocurrencies, including Bitcoin and Dogecoin.
Governments are trying to track cryptocurrency activity, requiring cryptocurrency “banks” to register themselves and take identifying information about their users. However, this is a business and tax decision and not something governments are imposing directly on cryptocurrencies, which they can’t do now.
5. Why are some governments cracking down on cryptocurrency?
Cryptocurrency takes away the reliance on traditional banking systems. In a conventional world, you rely on governments to issue money, banks to store it and track it. Any financial transactions you make are recorded digitally, or if you receive cash, you then have to spend it or put it in the bank. It is challenging to use large amounts of money without the government knowing or recorded for later review.
With cryptocurrency, transactions don’t have to be recorded with your name attached. So you can buy and sell without anybody knowing you are making transactions, which means nobody can track your tax requirements. If you are involved in illegal activities, nobody can monitor those transactions either.
6. When did Dogecoin start?
Dogecoin was created on December 6, 2013, by software engineers Billy Markus and Jackson Palmer. The two engineers did not know each other. The original idea was a joke tweet from Jackson Palmer, simply tweeting, “Investing in Dogecoin, pretty sure it’s the next big thing.”. This tweet ended up receiving a lot of publicity and starting trending on sites such as Reddit.
On the other hand, Billy Markus had been trying to create his cryptocurrency but wasn’t having any luck.
With the publicity that Palmer was receiving and the technical know-how of Markus, the two ended up forming a partnership and releasing a new cryptocurrency.
7. Why was Dogecoin started?
While the original idea behind Dogecoin was a joke, and the graphics behind the coin were a meme. The creators wanted to create an alternative to Bitcoin for smaller investors and general use, rather than what Bitcoin was becoming and is today, which is simply an investment opportunity.
8. What is the “joke” behind Dogecoin?
Doge was a popular meme in 2013, still used to some degree today. Doge is a Shibu Inu dog and is used to convey jokes or funny comments. The spelling and language are often incorrect, which is also why it’s “DogeCoin” and not “Dog Coin.”
9. Why am I suddenly hearing about Dogecoin?
Dogecoin has been around for 6-7 years; it had immense interest even before its release. In the digital world, it continued to gain popularity, sometimes attributed to just the name and logo of the coin. People loved owning a funny currency that was incredibly cheap to buy and tip out to other users on systems.
However, Dogecoin has grown and is seeing huge increases, valued at 33 billion in October 2021 and continuing to climb. Celebrities and investors are also excited about the coin and continue to promote it, and this is likely due to them buying it and hoping to gain value from promoting it. This includes people like Elon Musk, Snoop Dogg, Gene Simmons, and Kevin Jonas.
10. How do you pronounce Dogecoin?
Officially it’s “dohj coin”, even though it may look like “doggy coin”.
11. What was the point of Doge Day?
Doge Day is April 20, and it is a set day for investors to push the coin and attempt to break through to $1 and beyond value for the cryptocurrency.
12. Is there a limit on the supply of Dogecoins?
Dogecoin has no limits on coin supply, a specific difference intended to separate them from Bitcoin and the issues they saw in it. Bitcoin has reached about 18.5 million coins available of the 21 million limit. Once achieved, no further bitcoins can be created.
Dogecoin decided on no limits for several reasons. Including discouraging hoarding of coins and halting trading, replacing lost coins, keeping miners interested in mining and securing the network, and keeping transaction fees low.
13. What can you buy with Dogecoin?
Coins such as bitcoin are becoming widely accepted, even in retail stores or restaurants.
Dogecoin has limited acceptance directly, but it’s now possible as a US resident to get a bitcoin-backed Mastercard, and this means you can use your Dogecoin anywhere that Mastercard is accepted.
Outside of the Mastercard, you may find it difficult to do much else except trade Dogecoin or use it virtually with other Dogecoin enthusiasts.
14. What’s the total value of Dogecoin?
Dogecoin value fluctuates. As of October 2021, it’s valued at around 0.25c per coin or $33 Billion.
15. Should I invest in Dogecoin?
Buying any cryptocurrency is a risk. However, that’s the case for any investment. Dogecoin has seen continued value increases with predictions of it reaching $1 and even $10. If Dogecoin continued on this path, it could end up being the next Bitcoin. Getting in early would be an opportunity for you to make a lot of money.
However, there have been some big dips, including dropping from 0.70 per coin in early 2021. With Dogecoin, you would need to stay strong and let it rise without panic selling.
16. How do you buy Dogecoin?
You need to open an account with a cryptocurrency exchange. Two well-known exchanges are Coinbase and Kraken. There are fees associated with buying Dogecoin, the same as any other investment. However, you can shop around to find an exchange with the best costs for your purposes.
17. What is needed to buy Dogecoin?
Most exchanges accept a variety of payment methods to fund your account. Typically this will require bank transfers or wires into the exchange. You may also be able to use credit cards or even PayPal and other digital wallets to fund your account.
18. What risks are there with Dogecoin?
There are two specific risks which are the same risks for any cryptocurrency investment,
First, your cryptocurrency may not increase in value quickly or may fall. For example, Dogecoin had a 0.70 value per coin; however, this dropped to 0.26. So if you invested at the high end, you’re now either taking a loss or waiting for it to increase further.
Second, the cryptocurrency exchange you use could go out of business, or somebody could steal your cryptocurrency. Unfortunately, both of these have happened to numerous exchanges, so it’s a real possibility.
19. Why buy Dogecoin over Bitcoin or other cryptocurrencies?
Dogecoin is seeing massive growth while still being affordable to the general population right now. Unfortunately, Bitcoin is no longer an affordable option to make a lot of money unless you already have a lot of money.
Most investors wish they had gotten into Bitcoin early because the value increases so much that minor investments made the owners millionaires. This is a possibility for Dogecoin or any other cryptocurrency that is starting to see value increases.
20. Why do celebrities like Elon Musk and Snoop Dogg keep talking about Dogecoin?
Dogecoin is a fun and easy to obtain coin. Elon Musk and other celebrities enjoy being part of something, and some may even see it as a good investment.
If you can use your celebrity to increase value, why wouldn’t you make some money? Some of the huge volatility in Dogecoin has come down to comments from Elon Musk, either positive or negative, which heavily drive the coin value.
Final Thoughts
Dogecoin started as a joke but became an extremely popular cryptocurrency with expectations it will continue to climb in value. If you are investing in cryptocurrency, then Dogecoin should be something you’re seriously looking at, even for the potential that it becomes the next Bitcoin.
The biggest risk behind Dogecoin is that it provides no real value, service, or product. The valuation is purely based on people wanting it to be worth something and investing in it. If Dogecoin falls out of favor, there would be nothing to stop it from becoming worthless again.
