Much Wow, Such Gain: The Rise and Rise of Dogecoin
Dogecoin is a playful digital asset that started as a joke but has since become a force to be reckoned with.
Inspired by the viral internet meme of a Shiba Inu dog, Dogecoin was initially created as a parody of other cryptocurrencies – but its dedicated community of fans and celebrity endorsements have taken it to new heights.
With Elon Musk among its most vocal supporters, it’s no surprise that Dogecoin’s market value has skyrocketed in recent years.
As of the day of publishing this (4Apr23), Twitter sports a Doge logo in place of the regular blue bird one – apparently as a late April Fool’s joke by Elon Musk. He alluded to the change with this meme 👇️
This shows more than anything how far Doge has come – from being a literal joke cryptocurrency to taking over the internet.
Get ready to join the pack and explore the wild world of Dogecoin!
History of Doge
Dogecoin is named after Doge, a character based on a Shiba Inu picture that has circulated online since 2010. Doge is frequently used as a mascot for good-natured wonder on the internet, and the coin inspired by the canine’s image represents a similar point of view.
It’s interesting to note that the Shiba Inu dog that inspired the Doge meme lives on in Japan – here’s the tweet from Dogecoin regarding this.
Dogecoin was created as a joke in late 2013 by software developers Billy Marcus and Jackson Palmer, who were Reddit friends who had never met in person. They combined two then-popular themes in their online circle: the ascendant cryptocurrency Bitcoin, a meme featuring a Shiba Inu, and a misspelled version of the word “dog.”
It was designed to be a digital payment method similar to Bitcoin or Litecoin. It is also used as an investment product by some. It is primarily known as a meme coin, and its users take pride in the culture that has grown around it.
“At its heart, Dogecoin is the accidental crypto movement that makes people smile!”
…a message boasts on dogecoin.com, the official Dogecoin website. The project’s primary message is summed up best by a familiar Dogecoin Reddit rallying cry, notably forming an acronym of DOGE:
“Do Only Good Everyday.”
Dogecoin devotees often use social media to hark back to some of the coin’s guiding principles, including charity, fundraising, support of one another, cryptocurrency advocacy, and making memes.
In 2021 the Foundation was re-invigorated by members of the original core team along with fresh faces and new seasoned advisors ready to grow Dogecoin for the decade ahead.
How does Dogecoin work?
Dogecoin operates on its own blockchain and its digital ledger is constantly updated with new transactions.
It employs the Proof-of-Work consensus method, in which miners use computers to solve complex mathematical equations to process and record transactions on the Dogecoin blockchain. Miners receive Dogecoin in exchange for their efforts in supporting the network.
Because there is no lifetime limit on the number of Dogecoins that can be mined, the cryptocurrency is highly inflationary.
Miners are rewarded for their efforts on the blockchain by creating millions of new Dogecoins every day, making speculative price rises in Dogecoin challenging to sustain over time.
You can establish ownership of Dogecoin with a private key, a code similar to a password that allows you to access a cryptocurrency. These keys are often held in crypto wallets.
What makes Dogecoin valuable?
Like any other asset, DOGE is valued by the market based on supply and demand. Given the vast and ever-growing supply, demand has had to skyrocket to drive prices as high as they have recently.
That happened in the first months of 2021, when prices soared by around 7,000 percent, thanks to retail investors on Reddit banding together to drive up prices, the broader crypto boom, and months of tweets by Tesla founder Elon Musk, punctuated by his appearance on Saturday Night Live in May 2021.
Fast-rising DOGE prices in 2021 drew significant media attention and social media posts, creating a cycle that attracted more investors and increased prices for a time when an asset experience such dramatic gains, FOMO (or “fear of missing out”) attracts new traders.
DOGE, on the other hand, remains a highly volatile cryptocurrency; like any investment, it is not guaranteed to rise or fall.
Elon Musk and Dogecoin
A 2019 Twitter poll suggested that Elon Musk should be Dogecoin’s chairman. The Tesla CEO saw the joke and has since joined in on the fun, tweeting supportively that Dogecoin is his favorite cryptocurrency.
With his personal Twitter account boasting a staggering 130 million followers, even a brief pro-Dogecoin comment from him bolstered the cryptocurrency’s popularity and, therefore, its investment appeal.
Compared to many other billionaires, Elon’s portfolio isn’t diversified. His net worth appears to be tied to his companies except for 3 Cryptocurrencies (as per his own statements):
- Bitcoin: Digital gold (Capped supply)
- Ethereum: General purpose Blockchain (Deflationary)
- Dogecoin: Tipping coin (Inflationary)
Here are some instances where Musk has mentioned Doge on major media platforms, that got viral attention to the project:
Dogefather on Saturday Night Live 🕺
Musk hosted the popular US NBC TV sketch show Saturday Night Live on 8May22. He went so far as to call himself “The Dogefather” in a tweet about his appearance.
The Dogefather mentions Doge on SNL
“The New CEO of Twitter” 🐕️
DOGE prices rose 7% on 15Feb23, shortly after Musk posted a photo of a Shiba Inu dog to his 130 million Twitter followers.
Because Musk is one of the most vocal supporters of Dogecoin, frequently influencing its price with his tweets in the past, his February Dogecoin posts only had a brief bullish impact on the coin before it fell further.
“I Got Interested in AI…”
Musk stunned his followers on 3Mar23 by announcing that he now focuses on artificial intelligence, adding to the overall negative sentiment.
The billionaire tweeted the below – instantly crashing the price of Dogecoin.
Twitter Logo Changed to Doge 🐶
As we see now, though- it hardly seems like Elon’s fascination in Doge has gone down. As mentioned in the intro, Elon has changed Twitter’s blue bird logo to the Doge logo as on 4Apr23, and the media can’t stop talking about it. Not to mention- Dogecoin got a significant price boost after the update.
How has Dogecoin performed?
If Dogecoin started as a joke, the figures underpinning the cryptocurrency are deadly serious.
- Dogecoin currently sits at around 15x of its price at the start of 2021.
- In the last few days Doge has rocketed up to $0.10 on the heels of Twitter updating its logo to Doge. This comes after having hovered near the $0.07 mark for several weeks.
- In comparative terms, it ranks #7 currently on the top cryptocurrencies’ list – with a market cap of around $14billion – which is staggering for a literal meme coin.
What is Dogecoin used for?
Dogecoin has primarily been used to tip Reddit and Twitter users over time. Surprisingly, this meme coin is available on the majority of cryptocurrency exchanges.
Many vendors also accept it. Doge can purchase food, drinks, hosting, and other items online.
Dogecoin has been accepted as a payment method by the electronics retailer Newegg in over 70 countries.
Besides being a tipping mechanism and a cheap exchange, Doge is also a “little extra” Litecoin miners receive for securing the Dogecoin blockchain.
Unique Features of Doge
- Speed and cost – Dogecoin offers fast transactions and low transaction fees, which are essential for broad adoption.
- Unlimited supply – Originally, Dogecoin was capped at 100 billion coins, but it was later changed to an unlimited supply. That keeps the price relatively stable.
- Community – The heart of Dogecoin is its active community. The more than 300,000 members of the r/dogecoin subreddit are renowned for being a friendly and welcoming bunch.
- Philanthropy – That community has been known to rally around good causes. They raised over $25,000 in Dogecoin to help send the cash-strapped Jamaican bobsled team to the 2014 Olympics. They also teamed up with a water charity to raise thousands to improve clean water access in Kenya through the Doge4Water initiative. More on this below 👇️
Dogecoin is Giving Back to the Planet
Doge 4 Water, NASCAR, Jamaican Bobsled Team (2014)
Dogecoin helped fund a charity program called Charity: Water in 2014.
This charity raises funds to provide clean and safe drinking water to people worldwide who do not have access to it. It contributes to the water crisis, which forces millions of people to trek every day in search of safe drinking water or suffer from diseases caused by a lack of it, which can be fatal.
The community’s charitable efforts quickly drew media attention; in 2014, Dogecoin supporters sponsored NASCAR driver Josh Wise and funded the Jamaican bobsled team at the 2014 Winter Olympics.
Doge x Mr. Beast – TeamSeas (2021)
In recent years, Dogecoin has collaborated with YouTubers Mr.Beast and Mark Rober to raise funds for TeamSeas.
TeamSeas is a cleanup project that removes trash from bodies of water such as oceans, seas, and beaches. The project’s team cleans 1 pound of waste from any of these locations for every $1 donated, thereby protecting aquatic life and the environment.
The Giving Block
The Giving Block and similar organizations simplify Dogecoin donations for charities. The Water Project and the American Cancer Society are among those who utilize The Giving Block to accept Dogecoin donations, using the funds to support monitored water projects and cancer care.
Throughout its lifespan, the Dogecoin community has remained active and loyal.
Twitter Coin will NOT be Dogecoin.
Currently, there is no confirmation or assurance from Twitter regarding the adoption of Dogecoin, with all such claims being mere speculation. Nevertheless, since Musk’s arrival on Twitter, there has been a surge of excitement within the Dogecoin community, particularly on social media.
We believe Doge has little chance of being adopted officially by Twitter.
Here’s why:
Apple wants its cut.
Apple’s okay with tipping crypto unless tips are associated with digital content, such as Tweets. If you want a Tip Button on Tweets, you must use “coins” purchased through the App Store.
Can they sell Twitter Coins for Dogecoin?
But only on the web. For instance, TikTok lets you buy coins from their website, even boasting that it’s cheaper than the App Store, and you can already buy Twitter Blue on the web and save a few bucks.
Can I cash out my Twitter Coins for Dogecoin?
Like TikTok, you’ll be able to cash out for “real money,” but whether dog money is an option remains to be seen, and you’ll need to fill out tax info to claim your earnings.
There’s another question people are confused about; you may pay with Doge and cash out in Doge, so does that mean that Twitter Coins are basically “Dogecoin”?
The answer is NO because they won’t be worth what you paid. First, the App Store takes its cut; then Twitter takes its cut. So, when you cash out, you only get a fraction of what went in.
This thread by Jordan Jefferson breaks this down further :
Pros and Cons of Dogecoin
Pros
- Community – Dogecoin has a large and engaged community committed to the token’s success. If you use DOGE, you know thousands of other individuals have the same passion for the project.
- Unique Appeal – Unlike Bitcoin and Ethereum, each with its function, Dogecoin has an appeal like no other crypto token. It can thus attract a larger following based on its meme status.
Cons
- Inflationary – DOGE is constantly losing its value per token over time but gaining in the number of tokens. This presents a problem when using it for transactions or storing money, but it can be advantageous if you wish for more users to access it.
- Novelty – Dogecoin is a novel idea, but it is unclear if the project can sustain this popularity in the long run.
Conclusion
Doge’s longevity and success can be attributed to social media popularity, meme culture, influencers, and speculation.
Speculators profit the most from Dogecoin’s pump-and-dump transactions. And a relatively stable price for this coin seems unlikely, especially given that more than half of the coins are stored in three wallets whose identities are unknown.
That’s quite a lot to accomplish. However, the cryptocurrency market is strange, and Dogecoin is already an absurd cryptocurrency that has existed for almost a decade.
Dogecoin’s ecosystem and community must work together to create more tangible value for the token to secure its future.