The open-source P2P crypto Dogecoin, also known as DOGE, was created by B. Marcus and J. Palmer to mock the widespread enthusiasm around Bitcoin. The coin creators heavily used the current meme of that time – A Shiba Inu dog spelled “doge.”
Even though it appears to have been designed as a joke, Dogecoin’s blockchain has a fundamental technology similar to Litecoin. Dogecoin, which employs the Scrypt algorithm, is notable for its low price and limitless supply.
Elon musk’s influence on the rise of Dogecoin
Elon Musk is known to have had a notable impact on the success of DOGE. In 2021, Elon caused an increase in share price after announcing on Twitter that his company, Tesla, would now accept Dogecoin as payment for merchandise. In addition, Musk said that clients may now use Dogecoin to purchase Tesla fan items such as apparel and miniature automobiles. The price of digital money reacted well to this.
In response to Musk’s tweet, the value of Dogecoin increased by more than 17 percent in 24 hours. Other cryptocurrencies, such as Bitcoin and Ether, have stayed reasonably stable. Important to note is that this is not the only example of Musk’s influence on the price of cryptocurrencies.
What about Dogecoin now?
Dogecoin is not dead, as prominent peaks and troughs are natural features of the cryptocurrency cycle, but it is no longer the most popular coin. Instead, cryptocurrency traders have shifted their focus to the numerous Dogecoin copycats that have crowded the market recently. To elaborate, Kishu Inu, Akita Inu and Hokkaido Inu are all silly coins with attractive hype that do little, similar to Dogecoin. There’s also Keanu Inu, channeling John Wick, and, of course, an Elon coin.
Elon is an abbreviation for Dogelon. Its mascot is a cross between a dog and Elon Musk, and its goal is to be “the first interplanetary money.” It’s cute. It has already reached over 50k investors and is now close to a $500 million market cap.
Should I buy Dogecoin?
As a general rule, investors should adopt a long-term perspective, with a time horizon of five years or more. That said, investors might have difficulty justifying the purchase of Dogecoin and keeping it for that long. Adding Dogecoin to your portfolio would be somewhat speculative. When investing in Dogecoin, the goal is to get attention on social media. Investing in speculative coins for the long-term looks more like gambling than investing. As in any case, if you can find a way to benefit from heavy swings, trading Dogecoin short-term could be interesting.