Everything about Elon Musk’s favorite coin, Dogecoin

The buzz around crypto is catching the attention of people outside the crypto universe. The thrilling events taking place in this decentralized world are turning passers-by into onlookers. 

Bitcoin has always been at the forefront of media coverage, valiantly representing over 3000 altcoins in existence. 

However, altcoins are now stepping out of the bitcoin shadow. One of such coins is dogecoin. After gaining a whopping 500% rise in just 24hrs, the coin that seemingly started out as a joke, is now one of the most popular coins.

The birth of dogecoin wasn’t out of wedlock, neither was it a serious crypto project. Dogecoin’s immense popularity was largely due to the fact that the Tesla CEO, Elon Musk, named it as his favorite cryptocurrency. Elon’s opinion about cryptocurrencies has been known to have a significant effect on the crypto market. Elon’s tweet about doge last year, led to a 20% increase in the currency’s value. 

Dogecoin is an open source peer-to-peer digital currency. Created out of a meme, the creators weren’t particularly serious about the coin. 

How Doge coin started

Jackson Palmer started the creation of dogecoin in 2013. He commenced the creation of the coin as a parody to the crypto buzz going on at the time. Getting a positive feedback from social media, Jackson decided to add an extra ounce of seriousness to dogecoin by buying the domain; dogecoin.com

Jackson’s coin was getting quite the buzz on social media. This buzz got the attention of software developer, Markus who did  more work on the coin. The IBM software developer created the software behind dogecoin. Markus based the coin on a code resembling that of litecoin. It therefore operated just like litecoin.

Markus and Jackson launched the coin on the 6th of December 2013, and the value rose by 300% two weeks later. 

Dogecoin: The fun coin

Dogecoin was a fun coin. It settled well with new crypto comers. A funny looking Shiba Inu (Japanese dog) for a logo and a meme to go with it, made it spread like wildfire on social media. 

Unlike bitcoin, there’s no limit to the amount of dogecoin to be mined. Bitcoin halves miners reward every four years, to reduce the circulating supply of bitcoin. Once there is a total supply of 21 million bitcoins, the creation of new bitcoins ceases. This makes dogecoin an inflationary coin while Bitcoin, on the other hand, is a deflationary coin. 

While dogecoin might have been a less serious version of bitcoin, things started to get more serious in 2015. The seriousness led to Jackson’s exit. The dogecoin’s seriousness attracted a swindler, who swindled unwitting investors, to invest in a dogecoin exchange that was never created.

Things started to look up for doge again in 2019. It got Elon Musk’s endorsement in a cryptic tweet, and it was listed on Binance. 

The coin is primarily used for tipping, but some have admitted to using it to transfer bitcoin in order to avoid high transfer charges. The coin has definitely caught the eye of veteran and newbie crypto investors. 

With a very powerful rallying, dogecoin will definitely grace headlines some more. 

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