In the year 2013 two software engineers, Billy Markus and Jackson Palmer developed Dogecoin. It was an attention-seeking project and for that, a famous meme of the Shiba Inu dog was used to gain the major attention of the public. It is the first meme coin that was created (not to mention the first dogecoin as well).
The idea was put on execution on 6 December 2013 and by 5 May 2021, the market capitalization already crossed $85 billion (₹6731 billion). At the moment of July 2022, the market capitalization is $9 billion (₹712 billion) after being struck by a big market dip.
Dogecoin works on the mechanism of Proof of Work (POW) and originated from the fork of Litecoin (LTC), and has an unlimited supply. As the concept was new as well as entertaining the public accepted it in a fraction of the time and the cryptocurrency quickly took off on social media after its introduction. It reached a market valuation of several million dollars within a few months only.
The Dogecoin community is well known for its charitable generosity. One example of that is the websites like Reddit, which became popular as a wage system where users would pay one other minimal amount of Dogecoin to thank content creators.
Another example of such a charitable approach was fundraising efforts done in the year 2014 where it raised almost $30,000 (around ₹2 million) in Dogecoin for the Jamaican bobsled team to compete in the Sochi Winter Olympics. The team qualified for the competition but didn’t have the funds to reach Russia for the competition.
Factors that helped Dogecoin to receive such popularity
The Dogecoin supply is considered unlimited so it’s easily available to buy for people. When it was launched the supply was limited to 100 billion coins but that supply got occupied within 2 years. Every single year around 5 billion coins are put into circulation. It is expected that the supply limit of Doge will get doubled within the next 15-20 years.
Due to large quantities and easy availability the prices of Dogecoin are quite low. At the moment the price of 1 Doge is $0.06894 (₹5.49). And the highest ever reached price of Doge was $0.69 (₹54.64) on 5 May 2021. At the price of Bitcoin and Ethereum, you can buy millions of Dogecoins.
People interested in entertaining things
As the concept is quite entertaining to people, they are more interested in it so they are buying it. Things that go viral on social media and the internet just create a trend and people just start following them easily.
Backup from powerful people like Elon Musk
Elon is the biggest supporter of Dogecoin, he is even nicknamed Dogefather. From the start of the Doge launch, Elon supported it and mentioned in his tweets that he will always keep buying more Doge. However, it is also seen that every time Doge was seen going down in the market, Elon always made a tweet about it and created new hype about Doge to keep the price maintained.
What can risk the growth of Dogecoin?
Meme coins are very popular among people and new coins keep forming which also changes the trends. So it is likely that Dogecoin can be forgotten with time with the arrival of new coins. It’s not that this meme coin will disappear randomly one day but the prices may drop for some time.
Easy availability leads to limited growth
As the supply is unlimited everyone can easily access it or buy it doesn’t create demand and crypto’s price is highly dependent on the demand. If the demand is easily fulfilled the prices won’t go much higher causing the limited growth of Dogecoin.
How can you buy Dogecoin on Suncrypto in India?
Dogecoin can be purchased in a variety of ways. You can just mine it yourself or take it as payment for goods and services. The most commonly used and safe method is to get it through a reliable exchange like Suncrypto.
Follow these steps to buy your Dogecoin on the Suncrypto Exchange
- Download the Suncrypto application from the Play Store or the App store
- Complete the KYC process by filling out the requirements
- Deposit the account to buy cryptos on the platform
- Search the Dogecoin meme coin on the application
- Select the quantity and press buy
- And you are done with the buying process
Dogecoin is a popular cryptocurrency and has a good reputation in the crypto market so it is a good investment to start with low prices. Even though the investment is easy, a person should do their research before investing in the market.
For more crypto-related information and news you can check out the Suncrypto academy.
Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. All content provided is for informational purposes only, and shall not be relied upon as financial/investment advice. Opinions shared, if any, are only shared for information and education purposes. Although the best efforts have been made to ensure all information is accurate and up to date, occasionally unintended errors or misprints may occur. We recommend you to please do your own research or consult an expert before making any investment decision. You may write to us at [email protected].