Dogecoin could soon outshine Bitcoin. What started as a mere joke is at its highest value ever. The price of Dogecoin, a crypto asset based on the ‘doge’ meme, shot up on Friday, April 16, after Elon Musk, Mark Cuban and beef jerky brand Slim Jim backed the cryptocurrency. As per Coinbase, which keeps a track of the cryptocurrency market, the growth of Dogecoin has been massive — a 112.89 per cent increase. The value of the cryptocurrency increased by around 30 cents. This comes days after Tesla CEO shared a meme on dogecoin cryptocurrency. On April 14, the market Dogecoin’s value was almost 12 cents. Here we will talk about the growth of Dogecoin, what it is, and whether it can be taken seriously.
What Is Dogecoin?
According to CNBC, the digital token was created in 2013 by software engineers Billy Markus and Jackson Palmer as a faster but “fun” alternative to the cryptocurrency Bitcoin. It was started as a satirical take on the numerous fraud crypto coins that had sprung up at the time and took its logo and name from a famous meme called ‘Doge’ that featured the image of a Japanese breed dog Shiba Inu several years ago. Unlike Bitcoins, whose maximum possible number is fixed at 21 million (a figure that is estimated to be reached by 2040), Dogecoin numbers have no upper limit, and there are already more than 100 billion currently in existence. According to several reports earlier, when the Dogecoin first took off, the online community that was supporting it garnered attention by backing unconventional causes, such as sponsoring Jamaica’s bobsled team at the 2014 Winter Olympics. Also that year, the Dogecoin community gave about $55,000 worth of the digital token to a Nascar driver in the United States.
Doge Barking at the Moon pic.twitter.com/QFB81D7zOL
— Elon Musk (@elonmusk) April 15, 2021
The growth of Dogecoin — how did it receive a sudden boost?
At the beginning of 2021, Dogecoin comparatively had a lower value. It was less than a cent but over the past few months, Dogecoin witnessed a sharp upward trend. But in April, the value of the crypto-coin doubled within two weeks and Tesla CEO Elon Musk might have a huge role to play in its sudden rise. On April 15, Musk shared a painting of a dog barking at the moon by Spanish painter and sculptor Joan Miró. He captioned the picture, “Doge Barking at the Moon”. “To the moon” is a phrase that is typically used when cryptocurrencies witness significant growth. Through this tweet, Tesla owner Musk hinted at the sudden surge in the value of Dogecoins. His tweet received over 51,000 retweets, over 30,000 likes and more than 20,000 comments. Soon after Musk’s tweet went viral, Dogecoin witnessed an all-time high. It is now at $ 0.3834 (at the time of publishing this article).
Not just Musk but other celebrities, including rapper Snoop Dogg and rock musician Gene Simmons, have also promoted Dogecoin on social media. Another reason behind its current surge, as per reports, is said to be a Reddit group called SatoshiStreetBets, where its members built up a much-desired hype for the cryptocurrency in a manner similar that led to the rise of GameStop earlier this year. The group’s name refers to Satoshi Nakamoto, the screen name of the person or group of people behind Bitcoin.
How Can You Buy Dogecoin?
Like any other cryptocurrency, Dogecoin also can be easily bought using credit/debit cards on cryptocurrency exchanges such as Bitbns, WazirX, and CoinSwitch Kuber. And if you wish to buy Dogecoin in India you are required to set up your account on crypto exchanges that support this cryptocurrency. A cryptocurrency exchange allows the user to buy, sell or trade cryptocurrencies. You can buy Dogecoin in India through all of these methods- Credit or Debit card, MobiKwik wallet, Bank Transfer, Bhim, and IMPS Transfer.
Is it safe to purchase Dogecoin?
Dogecoin like any other cryptocurrency such as Bitcoin is considered to be highly volatile and pose a lot of risks. Industry experts believe that many invest in Dogecoin casually with no real intention of making any profits. Ashish Singhal, CEO and Co-founder, CoinSwitch Kuber told The Quint, “Many invest in Dogecoin just for fun with no real intention of making profits. Some use Dogecoin as a mode to tip online to content creators and to support causes that appeal to them. The currency has been in the limelight for a while now, ever since Elon Musk has been tweeting about it. Whether one should invest in Dogecoin or not is completely subjective. Investments in Dogecoin, just like investments in any other cryptocurrency, should only be done up to an amount that one can afford to lose.”