How Did Dogecoin Become the Internet Sensation?
The buzz that surrounds Dogecoin stems particularly from popular and prominent people putting their trust in it. Once that happened, it was only a matter of time until the fans began adoring it and needing it for themselves. When popular figures like Elon Musk tweet just how essential it is in the market, what else are people going to do if not jump on the bandwagon themselves? It became the very thing everyone wanted, and their FOMO (fear of missing out) is the very cornerstone that helped this coin become the internet sensation. This only shows just how far people are willing to go and what they can do to become more affluent than the next person.
Being as anticipated as it has been by the general masses, Dogecoin will make its mark in the world of digital currency. It is a peer-to-peer open-source cryptocurrency. It is considered an altcoin, which most would say is based on a hilarious meme that once dominated the internet. It is no surprise that the bitcoin bearing its face has done the same. The Shiba Inu dog you’ll find on its logo was once an internet symbol for “Really?! You didn’t!”. Dogecoin uses a scrypt algorithm, is lowly priced, and in great supply.
Dogecoin was started as a joke, as you may know, by a man named Jackson Palmer. He was a product manager at the Sydney office of Adobe Inc. in 2013. He wanted to satirize the hype that was fast growing around diverse cryptocurrencies all over the world. He has often been labeled as a skeptic-analytic observer when it comes to the technology that emerges.
On the other hand, in Portland of Oregan, a man named Billy Markus, a software developer at IBM, was very interested in creating a digital currency but had no luck. When he discovered the buzz surrounding Dogecoin, he reached out to Palmer to get his permission to build an actual software for the cryptocurrency itself.
Billy Markus used Luckycoin’s code to create the software backing up Dogecoin, initially derived from Litecoin. As such, you’ll find that Dogecoin uses a scrypt technology and Proof-of-work (PoW) coin derived from Litecoin itself.
As the coin itself uses a meme-worthy logo of the Japanese Dog Shiba Inu, it was marketed all over the world as a fun version of Bitcoin. The hype surrounding this coin was in line with the growing popularity of bitcoin in the industry, especially the crypto community. As it uses a scrypt technology and is available in an unlimited quantity to the masses, people saw it as the answer to all their prayers. People found it to be more convenient than the actual bitcoin due to its user-friendliness, adaptability, and speed.
It is essential to know that some coins are inflationary while others are deflationary. Bitcoin can be categorized as deflationary, whereas Dogecoin is an inflationary coin. Why is bitcoin deflationary? The answer is simple, and that is that there is a cap on the number of coins that can be created, whereas that does not apply to Dogecoin’s supply in the market.
Controversy Surrounding Dogecoin
The buzz surrounding Dogecoin faltered somewhat in 2015 as the cryptocurrency community became more serious. The first blow was definitely by the creator of Dogecoin, Jackson Palmer, exiting the community after labeling it toxic. He believed that the money that the coin was now producing was also toxic.
Crypto Bubble of 2017-2019
Everything that rises to fame eventually climbs back down, and something similar happened to Dogecoin. Its bubble peaked towards the end of 2017, with the rest of the crypto world in the year 2018. Within that time frame, it surpassed $1 billion in market capitalization, which is record-breaking for a coin in such a limited amount of time. Then when 2019 came around, Dogecoin took another rise in value when the cryptocurrency exchange called Binance listed the coin on its platform. Then, even Tesla’s CEO Elon Musk tweeted and endorsed the coin, making the crowd go even wilder. Even though the tweet itself was somewhat cryptic, cryptocurrency fanatics got the hint.
Dogecoin and 2020s
As Dogecoin’s developers are mostly volunteers, the coin’s infrastructure has not exactly been a priority. Elon Musk stated in 2021 that he was working with the coin’s developers to improve its overall transactional efficiency, which would make it even more accessible to the masses for improved usage. Tesla products with. And then, he tweeted about it, asking his followers if they’d like it to be a currency they could purchase
Dogecoin is no longer what it was once and has become one of the worst cryptocurrencies to invest in, in today’s time. It lacked a competitive edge, and eight years after its debut, it hasn’t even reached 2,000 merchants willing to use it as a mode of accepted payment. If history has shown us much of anything, coins that gain traction so quickly crash and burn. Dogecoin started rather promisingly, but it simply could not live up to its expectation and certainly didn’t make it into the top cryptocurrencies of the year 2022.
If you’re thinking of investing $10,000 in Dogecoin right now, you might want to hold off on it and invest your money in a cryptocurrency that is not as volatile as this one. Dogecoin is no longer worthy of your hard-earned money. It was an ideal and quick investment for people looking to make a quick buck during its boom, but only if they cashed out at the right time with their gains.
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