Dogecoin, is it worth the investment?

Dogecoin had an initial supply
count of 100 billion coins in circulation. In 2015, the creators of the coin
agreed to add 5 billion coins into the market every year. This was done to
create a reduced inflation rate as time goes by, which adds a unique attribute
to the value of the coin itself.

These are the highest points the exchange rate has been at in the last 30 and 90-day periods. Dogecoin is similar to Bitcoin, Bitcoin Cash, Litecoin, which are also Proof-of-Work coins that offer simple transaction functionality. The table above shows the number of days which Dogecoin closed above a certain price level. If one or more of these ‘whales’ were to dump their holdings on the open market, the DOGE price would be very adversely affected. Meanwhile, the top 10 holders of DOGE have over 48% cumulatively and the top 8 wallets each hold over 1% of the currency individually. In response, Elon Musk voiced strong agreement for the idea that DOGE could be used as a currency and noted that its tipping utility would be nice to have.

The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters. You may decide you want to be part of the Doge community, or think — like billionaire entrepreneur Mark Cuban — that it has better value than buying a lottery ticket. It would have been difficult to buy a fraction of a cent’s worth of Dogecoin, so let’s look at it a different way.

DOGE to USD – Convert Dogecoins to US Dollars

Along with the humor inherent to its concept, the creators of DOGE also intended to advertise the benefits of cryptocurrency. They did this by staying light-hearted and unconventional, while also making sure it actually worked as a form of digital cash. Dogecoin was launched in December 2013 as a hard fork of Litecoin, which had previously forked away from Bitcoin. This makes Dogecoin a spiritual descendant of Bitcoin itself, even if its original purpose was to poke fun at the original.

  • In February 2021, DOGE co-creator Billy Markus expressed his disbelief at the price action and valuation of the meme currency.
  • However, the billionaire seemed to show no support for Markus’ Web3-based proposal, and not much development work on it has been seen.
  • The meme coin features an image of the Shiba Inu–a breed of hunting dog from Japan–from an internet meme that went viral in 2013.
  • Over time, however, Dogecoin has grown into a large blockchain network and is one of the most popular altcoins available in the market.
  • Many of his tweets on DOGE led to or coincided with major rallies in price, although he has also addressed the risks involved with the currency on several occasions.
  • There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data.

This characteristic has seen trials of its use as a cash alternative since it is not as good a store of value as many other cryptocurrency tokens. Dogecoin, a digital currency with no white paper, no paid staff, and no fundamentals, has soared 14,000% in value this year and now has a market cap of almost $80 billion. That’s bigger than global computer company Dell, which has 165,000 employees. The founders of the controversial coin based it on a then-popular meme of a Shiba Inu dog that speaks in broken English. They wanted to make fun of the way people bought into crypto without fully understanding the coins.

If you do buy Dogecoin, or any cryptocurrency, do it safely

After developing a huge online community, its market
capitalization reached $5,382,875,000 in 2021. Like Bitcoin, Dogecoin uses the Proof-of-Work (PoW) consensus algorithm to verify transactions, produce new blockchain blocks, and reward cryptocurrency miners with DOGE tokens. Dogecoin doesn’t offer all the bells and whistles–like smart contracts, decentralized exchanges, NFTs, etc.–many other cryptocurrency platforms do. However, the original meme coin excels in providing a secure and low-cost platform for cryptocurrency transactions.

Dogecoin Price Closing History by Level

There are a lot of exciting cryptocurrencies out there that are trying to use blockchain to disrupt traditional industries and solve real-world problems. Since we can’t see the future, the best we can do is use the information we have to make decisions about what might perform well in the long run. Personally, I think crypto is already speculative enough without multiplying the risk with even more speculation. Investing for the long term can be a lot less stressful — and often a lot more profitable — than trying to time the market on speculative investments. Musk’s support for Dogecoin over the years hasn’t gone unnoticed, with many tweets or comments on the meme crypto by the Tesla and Twitter CEO often leading to increases in the valuation of DOGE.

CoinCheckup provides live cryptocurrency prices and charts, listed by crypto market cap. Get latest crypto prices, predictions,
news, and historical data for Bitcoin and thousands of altcoins. For example, Dogecoin is listed  on Binance, OKEx, Huobi and Kraken. Typically, Dogecoin isn’t listed against fiat currencies, so you will likely have to first acquire some Bitcoin and then trade it for Dogecoin on an exchange. Alternatively, you could ask a friend to send you some DOGE or earn it through mining.

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With a block mining time of just one minute (compared to Bitcoin’s ten and the multiple days needed by traditional finance), transactions actually settle very quickly. The often wild popularity and rallies in the price of DOGE often work in its favor safety-wise, as when the price rises, so does the profitability of mining. This causes more miners to start mining DOGE, meaning more computational power is dedicated to the network’s security.

Scores are based on common sense Formulas that we personally use to analyse crypto coins & tokens. Dogecoin is one of the largest cryptocurrencies on the market today, so some investors will definitely be interested in holding this cryptocurrency. However, Dogecoin can exhibit extreme price volatility, which can lead to large and unexpected losses. If you do decide to invest in Dogecoin, never invest an amount of money that you’re not willing to lose.

In the years following its launch, Dogecoin was used mainly as a currency with which users of social media sites could tip each other. Nonetheless, some have also used the token as a medium for the exchange of real goods and services. These blocks are batches of transactions and are recorded on the blockchain every minute.

Over the years, Dogecoin has become one of the largest market cap cryptocurrencies in the world. The project’s design envisions that the DOGE circulating supply will continue to grow to infinity as Dogecoin has no maximum supply. This monetary characteristic is putting inflationary pressure on the Dogecoin value, which in turn favors its use case as a method of payment instead of it being primarily a store of value asset. Primarily designed to provide a light-hearted means of communicating the basic function of cryptocurrency to mainstream audiences, Dogecoin is based on the “Doge” Shiba Inu meme. Cryptocurrency Dogecoin DOGE/USD surged in popularity in 2021 leading to an increase in the value of the meme cryptocurrency.

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