Is Dogecoin the Future?
Why the ‘Meme’ Dogecoin has the Real Potential to Become a Standard in Cryptocurrency
The blockchain world continues to unravel and put itself back together after the market downturn in early May of 2022. Now, investors, traders, and blockchain enthusiasts alike are on the lookout for cryptocurrency projects that are more authentic. More importantly, investors are looking for projects less prone to scamming attempts.
It’s become an almost ironic statement to say, but Dogecoin has become one of those vital investments that can help gear the blockchain markets towards authenticity and reliability. In this article, we will take a look as to how this meme of a token propelled itself into a serious investment opportunity. Also, we will look at the future of Dogecoin as a current investment.
From Humble Beginnings, Dogecoin Always Maintained Authenticity
To newer investors and blockchain users, Dogecoin was originally created as a way to poke fun at the cryptocurrency craze of the mid 2010’s. Dogecoin was founded in 2013 and satirized the then-hyped doge meme. Likewise, the coin was also poking fun at other established cryptocurrencies like Bitcoin. Of course, at this time cryptocurrency was still in its relative infancy. Indeed, accessibility and investment opportunities were effectively limited to those who were ‘in-the-know’ of the blockchain world.
Much like Dogecoin itself, cryptocurrency was not taken seriously until it exploded in value in 2017. Consequently, it has become known to most of the wider investing world.
However, while Dogecoin may have started out as a joke, it has always maintained an aura of authenticity around it. Importantly, this is due to the fact that, from its inception, Dogecoin has always been an open source project. This means that anyone can view the code that makes up the blockchain and network.
Additionally, because Dogecoin is an open source project, the community has always had a large say in its development.
Dogecoin Gaining Stardom with Tech Giant Elon Musk
The coin gained traction when billionaire CEO of Tesla and SpaceX Elon Musk began tweeting about it in late 2020. As with any influencer, this move by Musk helped to boost the price of DOGE as well as increase public awareness about the coin. Shortly thereafter, the price of DOGE rose to new heights. Lastly, in early 2021, Musk appeared on Saturday Night Live and again mentioned the coin.
Since then, the price of DOGE has continued to rise, with occasional dips. Then, in May of 2021, the price of Dogecoin reached its all-time high of $0.69 per coin. So far in 2022, the price has stabilized and is currently hovering around the $0.40 mark.
What separates Dogecoin from other cryptocurrencies?
There are a few things that separate Dogecoin from other more established cryptocurrencies. First, as mentioned before, Dogecoin is an open source project. This allows for greater transparency and community involvement in its development.
Second, Dogecoin has a much faster block time than Bitcoin. This means that transactions made using DOGE are confirmed much faster than those made using Bitcoin.
Third, DOGE has a very large supply. Specifically, there are currently over 129 billion DOGE in circulation. This large supply means that Dogecoin is less prone to price manipulation than other cryptocurrencies.
Finally, Dogecoin has very low transaction fees. Accordingly, this makes it an attractive option for those looking to make small or micro-transactions.
Why is DOGE a good investment?
Dogecoin is a good investment for a few reasons. First, as mentioned before, the coin has gained the support of some high-profile individuals, including Elon Musk. This gives the coin a level of legitimacy that other coins do not have.
Second, the lack of price manipulation means your investments into Dogecoin are much more likely to avoid the dreaded ‘rug pull,’ which happened to Terra’s LUNA coin in May of 2022.
Third, the low transaction fees means investors can more often trade with minimal headaches and concerns over gas costs.
Fourth, Dogecoin has a wide range of use cases. The coin can be used for tipping content creators on social media, for making online payments, and for sending money to friends and family. It has been even suggested by Elon Musk that those who subscribe to Twitter Blue should be able to pay with Dogecoin.
Finally, Dogecoin has a strong and active community, which means there are constant efforts to improve and promote Dogecoin as a cryptocurrency worth using beyond trading and investing.