Back in 2013, Dogecoin originated as a meme cryptocurrency. This week Dogecoin is valued at $34 billion.
In 24 hours, Dogecoin jumped 112.89 percent, according to Coinbase. The value of the cryptocurrency rising to around 30 cents just two days after it hit the value of 10 cents.
This jump occurred after billionaire Elon Musk took to Twitter to share a painting of a famous Spanish artist, except he changed the title of the artwork. The artwork titled “Dog barking at the moon” was modified to “Doge barking at the moon” about Dogecoin.
This is not the first time Musk has tweeted about cryptocurrency. He happens to be one of the most enthusiastic supporters of cryptocurrency, with his regular tweets.
What is Dogecoin?
It was launched in 2013 as a joke by Billy Markus and Jackson Palmer. Based on a trending dog meme at the time, the cryptocurrency was never intended to be serious and was being used as a joke to trade. But it seems like investors missed out on the trick, and currently, the Dogecoin value stands in billions.
How can it be used?
Dogecoin can be used on any platform that supports it for any goods and services. It can also be used to trade fiat currencies like the US dollar. Its value is volatile, like any other cryptocurrency, since it has no government backing.
How can it be purchased?
It can be bought at any cryptocurrency exchange platform like Coinbase, Kraken, or Robinhood. One must have a cryptocurrency wallet, which can be made/accessed on these platforms.
To buy the cryptocurrency in small quantities, faucets – websites that dole out a small number of free cryptocurrencies – can be a good option. For this, you have to click a button and put a captcha code every three hours to earn Dogecoins.
How is it different from Bitcoin?
Bitcoin’s maximum possible number is fixed at 21 million (a figure estimated to be reached by 2040). On the other hand, Dogecoin does not have an upper limit, and there are already more than 100 billion in existence.
What is the reason behind Dogecoin’s recent surge?
The most significant reason behind Dogecoin’s surge this week is the same as the reason behind Bitcoin and Etherem’s surge – listing of Coinbase, the most popular virtual currency exchange, on Nasdaq.
After going public, Coinbase’s market cap briefly hit $100 billion on Wednesday, valuing Bitcoin and Etherem at $64,000 and $2,500, respectively. Dogecoin is said to be a part of this frenzy.
Another speculation behind its current success is a Reddit group called SatoshiStreetBets, where members built up an enthusiasm for cryptocurrency like the rise of GameStop earlier this year. The group’s name refers to Satoshi Nakamoto, the screen name of the person or group of persons behind Bitcoin, as we have published in one of our previous articles.
These are all reasons in addition to Elon Musk’s tweets and support for the cryptocurrency, as seen on his Twitter. The current market capitalization of Dogecoin is about $16.9 billion, as per CNBC.
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