fintech The 5 things you should know about Dogecoin

The 5 things you should know about Dogecoin

Running among the most popular and best-looking cryptocurrencies, we have Dogecoin as one of the hallmarks of this new digital asset space, which is performing very well. And the truth is that, as you can see in the image, it all started with an absurd joke, a satire on bitcoin that was born from “doge”, one of the most popular memes on the Internet.

Dogecoin: a cryptocurrency born from a ‘meme’

In the first months of 2021, the Dogecoin cryptocurrency increased its value by 1,500%, becoming for a few days the tenth largest in the world, with a capitalization of more than 10 billion dollars. Now things have calmed down a bit, but he’s still held in high regard. But he has very curious things, like his birth.

In this sense, as such, this is still just another cryptocurrency, a digital asset . However, the history of this cryptocurrency differs from that of the two most popular currencies: created by software engineers Billy Marcus and Jackson Palmer, in 2013, it was born as a joke and as a way to ridicule cryptocurrency enthusiasts. cryptos.

At first, and being even normal, nobody paid attention to him. Who was going to take seriously a cryptocurrency that had a Japanese dog meme as its logo? So it was a source of laughter… until it ended up reaching multimillion-dollar figures . However, and unlike others, this cryptocurrency does not have a CEO or an official company, therefore, it is its loyal followers who drive the currency.

Its value began to increase in 2017

The doge cryptocurrency is primarily used to fund and tip content creators, but the number of merchants accepting it as payment is increasing. Their following is increasing year after year and they are pushing Dogecoin prices and its market capitalization to higher and higher highs.

In fact, over the years -and, especially, in December 2017- its value began to inflate , reaching almost 2,000 million dollars, (1,928 million, to be exact) during the first weekend of January 2017. next year. Out of curiosity, Marcus and Jackson wanted a currency that would be accessible to the general public, so they created it with open source software that allows anyone to view its source code. But there is more; this is all you need to know.

How Dogecoin works

Like Bitcoin or Ethereum, Dogecoin is a cryptocurrency that works with blockchain technology (chain of blocks): a technology that consists of a chain of fragments of information that are encrypted, where each fragment contains data from the next and previous fragment.

Every person who has purchased Dogecoin has an identical copy of the cryptocurrency blockchain, which is frequently updated with all new transactions made. Also, the Dogecoin blockchain network uses cryptography to keep all transactions secure.

It is perfect for micro transactions

As we say, Dogecoin is used as a virtual currency based on Bockchain. It is used to make payments and transactions where DOGE users can send and receive cryptocurrency with their dogecoin wallets. Transactions are done in seconds and with minimal fees .

Cryptocurrency can also be used to tip content creators. It is a perfect currency for micro transactions , since it allows the sending of small amounts with almost zero fees.

Why has it become so popular?

First, the Reddit community , which went to war with the investment funds that decided to take down the GameStop network of game stores, asked themselves: If it was possible to increase the value of GameStop, why not increase the value of Dogecoin?

The Reddit community believed this and soon there were increases in the value of the coin. At its peak it reached 1500% of its value. But that is not all; and it is that the billionaire Elon Musk , who recently bought Twitter, began to publish rather strange posts on the social network, which were in a way to promote Dogecoin.

The Tesla boss, in his Twitter style, began writing without much context about the cryptocurrency. Musk’s entries caused a real frenzy, beginning to rise several thousand percentage points, just as his valuation jumped in a few days to 10 billion dollars. Dogecoin’s momentum in 2021 was so great that even Elon Musk, CEO of Tesla, has mentioned on occasion that Dogecoin is better than Bitcoin for online transactions.

What is its value and what forecasts do you have?

Like any asset, it is worth what people are willing to pay for it. As with most cryptocurrencies, the price of Dogecoin is very volatile . On December 15, 2013 it opened with a value of only USD 0.0005588 and during the following years it experienced slow growth.

In January-February 2021, the value of Dogecoin suddenly increased to USD 0.07007, and in the spring it saw a stratospheric rise to reach USD 0.688853, its maximum. Today it stands at 0.12 USD (0.11 euros).

With several indications about the possible rise of Dogecoin in the coming years, none of them suggested that its price would exceed $1. Wallet Investor predicted that the price of Dogecoin could reach $0.29 and triple to $0.86 within one year and five years, respectively. The DigitalCoin price prediction puts the average Dogecoin price at $0.19 in 2022, with the potential to go as high as $0.28 and $0.66 in 2025 and 2030.

These are your bags

Digital wallets or crypto wallets are the place where cryptocurrencies are stored, and in the case of Dogecoin, it also has its own. In this, what these wallets do is contain the information to use cryptocurrencies, including public and private keys. In the case of Dogecoin we can find up to 4 types of wallets:

  • Software Wallets – Software wallets come in many different forms, each with its own characteristics. Dogecoin offers two software wallets for download: Dogecoin Core, which contains the entire Dogecoin blockchain. The download can take a long time, and it makes your computer become a Dogecoin node. There is also MultiDoge, which does not turn your computer into a full node, but does store enough data to use Dogecoin.
  • Online wallet – These allow you to use the Dogecoin block chain, without the need to store the information on the computer.
  • Paper wallet – These wallets can be printed and held on hand. It is a safe way to store our Dogecoin and can be found on the internet.
  • Hardware wallets – These wallets consist of removable hardware devices such as USB sticks. They can reach high prices of up to 100 euros, but like paper wallets, they are a safe way to store cryptocurrencies.

Samuel Edwards
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