When something is valued at $65 Billion, you have to start taking it seriously. Yes, we are talking about the most controversial cryptocurrency- Dogecoin. Elon Musk is the biggest supporter of this coin, and it doesn’t seem to stop growing in value. Now, there is a difference between something having utility and value. All the so-called “crypto gurus” out there are indeed telling the truth about Dogecoin not having any real utility, but what must also be addressed is its adoption in the crypto space.
People are making serious profits by investing in this cryptocurrency, but what they are also doing is educating others about this opportunity. This is creating a community that is always active in the market and is driving more impressions on the web. Now, does this mean Dogecoin will really have a future? Will it find some real use-cases and survive without Elon Musk- the “self-proclaimed” dogefather?
In this article, we will be covering everything from the origins of Dogecoin and what impact it can have in the near future. Stay till the end to know how you can plan your exit strategy and make the most of this opportunity.
How Doge became a reality?
We can say now that it is no laughing matter, but when Dogecoin was launched in 2013, it certainly was based on a meme. Billy Markus and Jackson Palmer are the two software engineers who worked on creating this cryptocurrency, and what inspired them to create this payment system is a meme. The two engineers planned to mock the crypto markets, as there was a lot of speculation going on and the Shiba Inu dog meme made them take the next step. If you haven’t seen the original “Doge” meme, here you go:
The multicolored text written above is purposefully represented in broken English, and it grabbed the attention of many online users at the time. The text format used here is Comic Sans, and if you go to the official website of Dogecoin, you will see the same being used all over the page. The website is fully credited to Palmer, as he took charge to purchase the domain name, and Markus was responsible for designing the protocol. He used the scrypt algorithm, making the cryptocurrency more difficult to mine than bitcoin itself. Dogecoin is based on Luckycoin and Litecoin, which still exist in the current markets.
While these steps helped build the actual cryptocurrency, the thing that kept pushing the price and value is the doge community. In 2013, the crypto markets experienced some of the biggest crashes, as, at that time, no country was ready to encourage banks to invest in this kind of ecosystem. While all this was happening, Dogecoin climbed nearly 300 % and reached a price of $0.00095.
As the coin slowly gained some traction, it experienced a major theft by a hacker who stole millions of coins and gained access to the entire platform. This incident created more communities supporting Dogecoin, and everyone wanted to help people who lost their hard-earned money. Within hours, an initiative called “SaveDogemas” began, and people started donating money. This wasn’t the only time the Doge community earned a lot of popularity and praise. They have done some amazing stuff supporting the 2014 winter Olympics by raising $50,000 for the Jamaican team. In 2014, they sponsored NASCAR driver Josh Wise to participate in the race by raising 67.8 million Dogecoins.
If we look at recent events that made Dogecoin a reality, we will see most of them being associated with Elon Musk, aka Dogefather. Even billionaires like Mark Cuban started supporting the coin and made it public that his Dallas Mavericks will act as a merchant for Dogecoin. We can say all we want about this type of cryptocurrency, but it is because of the community and online platforms like Twitter and Reddit.
Elon Musk and Dogecoin
In his recent appearance on SNL, Elon Musk called dogecoin a “hustle” and led to a major downtrend for the cryptocurrency. However, if we consider the previous 700% rally in one month, it is clear that his tweets made it all possible. When one of his followers on Twitter asked, ‘ why do you love Doge so much?’ Elon replied by saying, ‘I love dogs & memes,’ and this made the cryptocurrency explode to new heights in terms of market cap.
You must have also heard of the phrase, ‘Going to the moon,’ right? Someone in the Twitter community had photoshopped the dog’s face and made it seem like it is going to the moon with an actual suit.
There are many more memes and tweets being shared by Elon and other influencers, but when he wrote Doge is people’s crypto, the value went up by 75%. In the last few months, we have seen many such incidents that led to huge dumps and pumps, but he remains to be a supporter of Doge.
While all these tweets are gaining massive traction in the cryptocurrency market, one should start questioning how the future is going to look like for Dogecoin. It is more important to know how the markets react when there is no constant support from Elon Musk.
Adoption of Dogecoin
It is true that Doge has no real utility and can’t add any value to society, but it doesn’t imply that it can’t be used for daily transactions. People keep thinking that currencies need to have an intrinsic value all the time, but it is not reasonable to compare fiat money with a crypto coin. Bitcoin has no intrinsic value, but it is still worth $58,000 as of today. The same thought process can be applied to even Dogecoin. It has no real value, but it can be used for the exchange of goods and services.
Recently, CovCare, a leading member in the medical supplier market, announced that they are accepting Dogecoins for their online PPE purchases. Another big name in the sports world, the Dallas Mavericks Owner, Mark Cuban, made it clear on his Twitter that he will be accepting Dogecoin for buying tickets and merchandise. “We have now sold more than 122k Doge in merchandise!” Cuban said on Twitter. “We will never sell 1 single Doge ever.” He also highlighted how Doge could really gain value and become like any other currency.
The interest towards Doge is also rising in the financial institutions. The managing director of Goldman Sachs recently made huge amounts of money by investing in Doge, which led him to resign from the company. Aziz McMahon from Goldman Sachs is not the only executive moving towards the booming crypto craze. Many top financial companies are taking advantage of this rise in Doge, and they are succeeding in making serious money.
Major Exchanges offering Doge
With a cryptocurrency like Dogecoin, you have to be careful when selecting an exchange. This is highly recommended after seeing what happened in the last few weeks in both Indian and International crypto markets. Millions of people got into these platforms to invest in Doge, and the load was so high that the entire application crashed. This led to some losses for many retail investors, so choose the right crypto exchange that is reliable in any situation. Here are some of the most trustable exchanges right now are highlighted below:
The world’s largest crypto exchange has some biggest trade volumes in the crypto space. You never have to worry about buying at the wrong price and you will never face any problems with liquidity.
Another big name in the industry that has been around for a long time is Kraken. The trade volumes are huge for Dogecoin on this platform and it offers a great selection of cryptocurrencies. The support team is also well managed and they can get you up and running in no time.
With 369 crypto assets, Huobi is a leading member in the cryptocurrency industry. They have also adopted Dogecoin and the platform makes it easier for new investors to understand orderbook and market trades options.
Gemini is an excellent trading platform with an easy-to-use interface. The number one selling point for this platform is security. With FDIC protection for USD, it is a well-rounded regulated exchange, and it recently listed Dogecoin in its selection of cryptocurrencies. So, if you are US-based, Coinbase is not the only platform available.
After numerous requests from customers, crypto.com has announced that they are also making Dogecoin available on their platform. It is reliable and secure, as more than 10 million people invested in the crypto markets using this platform. They also offer some great interest rates on cryptos, so if you are going long on Doge or any other cryptocurrency, this might be your best option.
In a recent update, US Based Leading Exchange Coinbase announced to enable DOGE Trading in next six to eight weeks.
Will Dogecoin remain as a joke or find some validity in the future?
With Mr. Musk’s tweets making the currency go up and down in a matter of hours, Dogecoin’s future is looking very uncertain right now. The crypto markets are highly volatile, and Dogecoin experiences even more volatility because it is not driven by any real-time projects. One of the biggest concerns is how long the hype will last. If all of a sudden, Elon Musk stopped tweeting about Doge, then what would happen? Here is a tweet that indicates similar concerns:
Doge holders in every country are having similar commitment issues. Another big problem with Doge is that it has investors or so-called “Dogecoin whales” dominating the circulation supply. In a recent report made by the Wall Street Journal, the value of Dogecoin owned by these Whales is close to $2.1 billion.
While all these real and valid concerns to the currency, it shouldn’t be treated as a meme coin. Companies accept Doge for their online purchases, so we shouldn’t write anything off how it can be valuable to normal retail investors.
We understood from the Gamestop incident that online communities are powerful, and they can drive traffic to anything on the web. In the same way, memes are powerful too, and they can move markets like never before. So, investing in Doge is like participating in a cultural zeitgeist. It may not be the best option for long-term investment, as it has no technical background and support from real-world experts, but it can be used for making some short-term gains.
An exit strategy for Dogecoin would be to take advantage of the momentum and start selling when the dip begins. A wise retail investor would take profits and leave the rest for scoping out the markets. So, are you selling your Doge or waiting for it to reach $1? Let us know in the comments
Born and brought up in India, Karthikeya Gutta is a crypto journalist and freelance contributor for ItsBlockchain. He covers various aspects of the industry with in-depth analysis and research. His passion towards blockchain and crypto ecosystem is mainly because he believes it can really change the world and help millions of people.
Subscribe To Our Newsletter
Join our mailing list to receive Cryptocurrency investing and trading recommendations to your mailbox.
You have Successfully Subscribed!
Subscribe to get notified on latest posts.