Elon Musk's Cryptocurrency Dogecoin: Meme or Money?
Is Elon Musk cryptocurrency dogecoin really worth all the hype, predictions or the price ?
Cryptocurrency is becoming insanely popular. It can be attributed to the sheer wealth that crypto traders can amass. A single Bitcoin, for example, could buy you a luxury holiday in the Mediterranean and that certainly can’t hurt it’s appeal even to those that know very little about crypto.
What makes cryptocurrency so valuable? It is mainly due to two essential factors. The first is the demand for the currency, and the second is the mining process that creates the coins.
So how does a coin, created from a meme of a shiba-inu, have a place in such a market? Read on to find out.
The History of Dogecoin
The story of Dogecoin began in 2013 when a product manager at Adobe named Jackson Palmer created the coin. Palmer made the coin at the dawn of the cryptocurrency craze. The coin was a response to the growing popularity of the now highly valued Bitcoin. He purchased the domain ‘dogecoin.com' and photoshopped the famous ‘doge' meme onto the logo. However, Palmer initially created this crypto coin only as a joke.
Unassumingly, the coin managed to gain traction on social media, mainly on Reddit and Twitter. Then software engineer Bill Markus developed it into a proper cryptocurrency. By 2014 it became the largest trading cryptocurrency, surpassing even Bitcoin! Reddit even allowed users to gift each other Dogecoins, which further propelled its popularity.
Why is it so Popular?
The popularity of this coin has not seen a decline since its inception. Despite being a cryptocurrency with not much value, it certainly creates a buzz. One major contributor to its popularity is billionaire Elon Musk. Musk is a fan of jokes and memes, which explains his affinity to the currency.
Elon Musk's frequent mentions of the coin on social media provide free publicity. Netizens have even dubbed Elon Musk as the godfather of the meme currency Dogecoin.
Interestingly, both Elon Musk and the cryptocurrency Dogecoin were underdogs in their own game. So it is almost poetic justice to see that both have achieved unexpected and unprecedented levels of success.
Despite skeptics doubting Elon Musk, he is now one of the wealthiest people in the world, with his own space station. Dogecoin, which was started as a joke, is now the most talked-about cryptocurrency on the inter-webs.
The rabbit hole goes even deeper! There are wild rumors of Space X, Musk's space station, having plans to send cryptocurrencies to the moon. We hope you find a place on the moon Dogecoin!
Another billionaire who has spoken about Dogecoin is Mark Cuban. He has said that the coin has ‘deterministic value.' Meaning that if people keep trading it, we could eventually use it like real money.
You might be wondering about the amount of Dogecoin stock Elon Musk has. Unfortunately, there is no exact number. However, he has said in an interview that he is the ‘ultimate' holder. As for Mark Cuban Dogecoin stocks are a small investment he bought together with his son. The amount of Dogecoin Mark Cuban and his son owns is in the thousands and I’m sure that with time that number is bound to change if the coin continues to maintain any relevant degree of value.
What is the Risk?
The Elon Musk cryptocurrency Dogecoin has grown exponentially this year. It has seen a 1400 % increase in price, going from 0.005 cents to more than 60 cents. Many traders are starting to recognize Dogecoin as a serious investment. However, the cryptocurrency Dogecoin price has seen dips too soon and too frequently which continues to validate the volatility in the crypto world.
Musk has also called it a ‘hustle' which, as expected, caused many traders to lose confidence in the coin. So, naturally, news like this causes traders to panic-sell. Which significantly decreases the price of any coin. But, on the other hand, one may also see this as an opportunity to buy in on currency when prices are low.
However, this is nothing surprising or new; cryptocurrency prices constantly fluctuate. It is never constant, and Dogecoin prediction of price is not reliable. It takes months of observation of any coin to make any reliable prediction.
Another big reason is the very nature of the coin. Dogecoin is derived from the open-source project ‘Lightcoin.'
Markus created Dogecoin without a limit to the production of currency. So, there is no real intrinsic value to the coin.
One primary reason for the success of Bitcoin is because there are only 21 million coins in existence. Thus, it prevents inflation of the currency and puts more value on stakeholders' stocks over time.
On the other hand, Dogecoin has produced 128 billion coins as of this year. As more and more traders buy and sell, the production will increase.
In the case of Doge, it never had any value until people placed a value upon it. However, as it stands at the time of writing this article.. it can still be said that not many people own Dogecoins or are even aware of it.
A lot of experienced traders say that Dogecoin is just a fad. However, many believe that the Elon Musk cryptocurrency Dogecoin will reach the 1$ mark. So, the water is murky for Dogecoin, and it’s still too hard to know with any certainty what the future is for the coin.
Where can you buy Dogecoin?
You might be wondering, ‘Where to buy Dogecoin Coinbase?', ‘Does Coinbase have Dogecoin?' The answer is yes.. apparently it caught the eye of the exchange and can be traded there as well. How do people invest in cryptocurrency ?
Coinbase seems to be a popular platform for trading. However, there are also others like Binance coin (BNB) and Ripple (XRP).
Cryptocurrency is available for purchase for anyone with a bank account through online trading platforms like those mentioned above. Such platforms are accessible via the internet or via apps for iOS and Android.
The famous Elon Musk cryptocurrency Dogecoin is available on all trading platforms. Along with other high sought after cryptocurrencies like Bitcoin, Ethereum, Cardano, etc.
To buy coins, all you have to do is:
- Create an account on one of the platforms and verify your email.
- Upload documentation for identity and bank verification
- Provide KYC information.
- Deposit money into the platform. Minimum $50; maximum (depending on the portal you use) to $25,000. Debit cards are used most frequently.
- Select your coin of choice and the number of coins.
- Select ‘Order' or ‘Buy.'
As of now, the Elon Musk cryptocurrency Dogecoin has continued it’s rollercoaster market value highs and lows. However, in spite of that there is still a sentimental value attached to it. Something that started as a gag has become the real deal. It seems that everyone wants in on the Dogecoin joke. So much so that this long-running joke has propelled its value over the years, most notably post pandemic.
However, one thing to always remember is that the cryptocurrency market is very volatile. Things change in an instant, and no currency is safe from depreciating. But, conversely, any currency may appreciate.
Although currently at a low value, Dogecoin could rise in a very uncertain future. After all, its main support comes from well-connected and powerful individuals which seems to continue to power it up but will that remain sustainable in it’s future without much use case and utility ? Only time will tell.
It is never a sure game with crypto. You may be investing a large amount, or you may be doing it for laughs but it’s always a risk you'll have to arrive at on your own.
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