The year 2021 has rekindled interest in Dogecoin. Dogecoin is a cryptocurrency that was launched in 2013 and is now one of the top 20 biggest cryptocurrencies in the market, with a current worth of over $9 billion USD.
Dogecoin is now worth roughly 7 cents; however, it has increased by 1,400 per cent in 2021. Its reputation has skyrocketed once more as a result of a few prominent supporters, notably Tesla CEO Elon Musk.
Dogecoin’s buzz has reached record all-time high points, but what precisely is Dogecoin’s interest? In this article, we study its origins and compare it to its competitors in order to understand its development and the grounds behind its popularity.
Dogecoin was founded as a satire in response to the Doge meme. For all those who are unaware, “Doge” is an online meme that features an image of a Shiba Inu dog surrounded by text (typically in Comic Sans font) that represents the dog’s inner thoughts, which is generally in poor English. In 2013, the Shiba Inu character of the cryptocurrency had become a sensation. However, unlike Bitcoin, it is not seen as a serious candidate for a reserve currency. There is approximately 129 billion DOGE in circulation, with billions more being generated every year.
It is why, even if the coin has already been trading at 30 times its previous value, its price might still be around 7 cents. The year 2021 has been dubbed (no pun intended) the “Year of the Meme Token,” with several new meme shares surging in popularity.
Situations like this simply go to highlight that social networking and the meme society have a lot of momentum and impact around them. They have the potential to be a real force that aids in the general adoption of bitcoin.
Trading in Dogecoin or other cryptocurrencies may be simple, particularly if you have the necessary tools, such as reputable crypto trading sites. You may still conduct research on different cryptocurrencies and purchases, and you can do so by using Bitcoin Era’s simple and user-friendly platform.
However, purchasing Dogecoin is another thing to tackle. Let us take a look at the worth of Dogecoin.
Apart from the cryptocurrency’s nature as a meme coin, there are several red flags. Dogecoin has always been primarily community-driven; hence it has never had the opportunity to be institutionally adopted. It doesn’t even have a white paper, and the project’s creator and developers ceased working on it in 2015.
Dogecoin is unlikely to be a sustainable investment in 2021 due to a lack of a solid team, a defined road plan, and technical advancement. This is a critical qualitative aspect to consider.
Since cryptocurrencies do not have regular returns, examining those qualitative elements is critical. However, there are certain methods for determining a currency’s fair worth, such as reviewing the influence of its value in relation to the other cryptocurrencies such as Bitcoin or Ethereum.
Then for the major question: Is Dogecoin a solid investment? Keep a close watch on your assets at least one moment in a day, or you risk losing all of it. This does not speak well for DOGE in terms of monetary value and usage due to its decentralised structure.
Given the considerable development and focus given about by situations such as the current one, we must be cautious, and we should educate ourselves on the asset’s vulnerabilities. There are over 15,000 new crypto initiatives, the majority of which have next to no worth or usefulness.
Suppose you would like to invest in cryptocurrencies because you like the meme or because of the social media craze; you should probably see the other side. However, for some, Dogecoin or other meme tokens might serve as a doorway into virtual currencies, increasing their likelihood of investing in other initiatives in the next few years.
If you’re an investor, a cryptocurrency that originated as an online fad is probably not the greatest choice for anybody. Even though it is supported by personalities like Elon Musk, it does not appear to be a good investment.