Is Dogecoin (DOGE) a crypto scam or secret genius? Elon Musk now heads the new D.O.G.E – what does this mean for the future of Doge?
‘One word: Doge.’
That three-worded tweet from Elon Musk sent Dogecoin’s price upwards of 800% in 2021.
In other words, if you had invested $1,000 in Dogecoin (DOGE), it would have been worth nearly $10,000 in a few days. Much wow, as the kids say.
One word: Doge
— Elon Musk (@elonmusk) December 20, 2020
Dogecoin isn’t like most cryptocurrencies. It started as a joke, then its founders abandoned it, and it’s the only altcoin with support from billionaire Tesla CEO Elon Musk.
Depending on who you ask, DOGE is the best or worst thing to happen to cryptocurrency. Let’s discuss the world’s leading meme coin.
What is DOGE? A Brief History
DOGE Stan
Dear Elon, I wrote to you, but you still haven’t called. I sent two DMs back in autumn; you must not have received them.
It’s amusing and somewhat ironic to think that four years ago, a DOGE tweet would be 10x the price, and now an entire government program exists with its name, and it hasn’t pumped. Strange times.
DOGE
How do you decide between memes and money? Dogecoin said, easy, you have both.
DOGE began in 2013 as a joke between software engineers Billy Markus and Jackson Palmer intended to make fun of wild speculation in cryptocurrencies.
Dogecoin quickly gained traction on Reddit, creating a market value of $8 million, later becoming known as a “tip” coin among internet users.
“It’s not taking itself as seriously; it’s not being used by people worrying about whether they’ll become rich,” Palmer told Insider in 2013. “It’s something to share for thanks or kudos.”
Why is Dogecoin Special?
Things went south quickly for Dogecoin.
Palmer left the Dogecoin project, stating that the crypto community was ‘toxic’, and in 2019, its value plummeted to $0.2. The death of Dogecoin seemed inevitable.
Then, 2021 happened. Elon Musk came in, and soon Dogecoin began to receive immense attention from social media and influencers, including Mark Cuban, Guy Fieri, and Snoop Dogg. This sudden rise propelled its price to a staggering $0.73 by mid-2021. Bitcoin and Ethereum couldn’t keep up with Dogecoin.
Dogecoin is a fork of Lucky coin, which is a fork of Lite Coin, itself a fork of Bitcoin. It’s fork-ception.
On a superficial level, Dogecoin does possess several key benefits:
- Block times of one minute, in comparison to Bitcoin and Ethereum’s 10-minute transaction speeds.
- Its affordable price point attracts retail investors.
- Lower fees make it cheaper to utilize.
Another intriguing aspect of Dogecoin is its inflation rate. New Dogecoins are generated at a rate of 10,000 per minute on the network, leading to extreme inflation. This significantly increases the challenge of elevating the price of DOGE.
Doge’s Future: What’s Next Now Elon Musk Runs The D.O.G.E
“Doge to $1” and “Doge to the Moon” are catchphrases shared by the Doge community.
Dogecoin may head to $1, but its inherent lack of value and poor tokenomics render it a high-risk long-term investment. However, meme investing isn’t going anywhere. Given its low price compared to Ether and BTC along with Elon Musk’s institutional backing, Doge is likely here to stay.
Dogecoin has been labeled the “People’s Crypto” by Elon. Don’t underestimate Dogecoin; it may just surprise you.
“But fate loves irony. The most entertaining and ironic outcome would be that Dogecoin becomes the currency of Earth in the future.” — Elon Musk
Key Takeaways
- ‘One word: Doge.’ That three-worded tweet from Elon Musk lifted Dogecoin’s price by 800% in 2021.
- Despite poor economics, DOGE remains a staple of meme culture and an integral part of the government; don’t overlook it.
