When Dogecoin (DOGE) first came onto the scene, most people saw it as a joke, including its founder. Then suddenly, even Elon Musk was backing the coin, and its value soared. Now though, the price has dropped, and some are wondering if Dogecoin is just a joke after all. You might be asking yourself: Should I invest in Dogecoin, or have I already missed the boat?
What Is Dogecoin?
The crypto protocol was made by copying and pasting the source code behind Bitcoin. Markus claims it took him just three hours to launch Dogecoin and that he did so for a joke. Even Markus sold all his holdings in 2015; he must be kicking himself now.
Since it’s based on bitcoin, in theory, DOGE would be classed as an alternative currency. Plus, Elon Musk recently started accepting Dogecoin as a payment method for Tesla merch, which seems like the use case he foresees.
How Is Dogecoin Used?
However, if any cryptocurrency deserves to be accused of being nothing more than a speculative asset, Dogecoin should be the one to take that title. It’s now inspired a whole new category of cryptocurrencies: meme coins.
Dogecoin Price History
Despite being around since 2014, Dogecoin went pretty much unnoticed for the first six years of its existence. When Dogecoin launched, its price was $0.0002, which didn’t change significantly until 2021. In February 2021, the coin enjoyed what at the time seemed like a big jump up to $0.079.
Should I Invest in Dogecoin?
Cultural Capital DOGE gained traction by taking inspiration from a meme and using it to give a middle finger to the financial system and cryptocurrencies that take themselves too seriously.
Profit on Market Irrationality
You can see Dogecoin as a 100% rational movement for the people, or it is the perfect example of how irrational the markets are. If it’s the latter, this could potentially be a way to make money.
Elon Musk Backing
That led the price of DOGE to jump 15% almost immediately. Admittedly, buying a limited amount of merchandise for Tesla doesn’t necessarily translate into an extensive use case for Dogecoin. Still, it’s a sign that the currency has some potential.
The energy inefficiency problem of the blockchain world has been heavily publicized over the last year or so. Protocols like Bitcoin can only function because of mining, requiring individuals to solve cryptographic puzzles using increasingly powerful computers.
To DOGE or Not To DOGE? Whether this tour around Dodgeville has inspired your first steps in crypto investing, or left you more puzzled than ever about why it ever gained success in the first place, hopefully, you’ve learned something today. Whatever you ultimately decide, we can all agree that Dogecoin’s rise is nothing short of fascinating.