dogecoins - cryptocrypto.co.za

Dogecoins

Perhaps you heard of dogecoins while Elon Musk was on “Saturday Night Live.” Or maybe your social media feeds are full of shiba-inu memes and proclamations that investors will soon reach the moon. Perhaps you are a crypto veteran who knows about this dog meme-inspired cryptocurrency since years.

Chances are, you have heard of dogecoin’s recent impressive returns. Even though cryptocurrency is a high-end currency, the token’s meteoric rise has been remarkable. After trading for fractions of a penny in the beginning of the year, the digital currency now trades at more than 57c per coin. The coin reached a peak of 74 cents just before Musk made an early May SNL appearance. It had increased by more than 15,000% in 2021.

It’s possible to have many questions about it if you don’t know much. These could include “How did this happen?” or “Should my entire life savings go into this investment?”

What is dogecoin?

Dogecoin, which is pronounced “dohj” with a soft G — similar to loge or, if you want, Limoges, is a digital currency that’s similar to bitcoin and ethereum but has a more humorous origin story. The coin was created by two software engineers in 2013. It was intended to be a humorous take on bitcoin, based on a meme about an idiosyncratic and grammatically odd shiba inu.

Soon, the coin attracted a loyal but small fan base who were happy to join in the fun. A group of reddit users donated 65,000,000 dogecoins (at the time worth $55,000) to sponsor NASCAR driver Josh Wise. The car was painted with a shiba Inu on the hood, and a rocket ship behind the rear tire.

Why has the dogecoin’s value risen so much?

Shidan Gouran, cofounder of Gulf Pearl (a merchant bank that was an early investor and founder of dogecoin), said that 2018 was the year that dogecoin began to rise. Robinhood carried it in 2018, he said. Robinhood created it. Many people believe it was Elon Musk.

Fast forward to the end of 2021 and it was clear that risky investment areas were growing rapidly. Reddit’s wallstreetbets users led a surge in the price of , also known as meme stocks. The prices of major cryptocurrency such as bitcoin started to rise.

“All of the tokens are very closely related. Brady Dale, senior reporter at CoinDesk, says that when bitcoin is in a bull run, other tokens also go up. “Someone thinks that dogecoin has been forgotten. It might make sense for them to purchase some.”

Gouran says that “the wallstreetbets guys started discussing it, and it became more popular.” It feeds off itself — if there is enough volume, it becomes easy to gamble with.

Then came the fame. As media outlets covered the rise of the coin, celebrities like Musk, Snoop Dogg, and Mavericks owner Mark Castron helped to boost the coin’s popularity via social media.

Dogecoin appeals to some investors precisely because it’s a joke. Giacomo Arcaro is a crypto investor who calls himself a “growth hacker”, and told Grow that he paid his rent last month in dogecoin profits. He says that people are so sick of the current financial environment, they have lost faith in everything. Instead of protesting in the streets, they are taking their money out of banks and putting it in dogecoin.

How do I buy dogecoin?

Dogecoin (symbol DOGE) can be purchased through mobile brokerages as well as popular cryptocurrency exchanges like Binance and Kraken.

Although Coinbase doesn’t currently offer dogecoin as a crypto exchange, CEO Brian Armstrong stated on a recent earnings call the company plans to list it on its platform in the next 6-8 weeks.

Do I have the right to buy any item with dogecoins?

While more merchants are accepting cryptocurrencies as payment methods, there will not be many options if you want to spend your dogecoins.

You can spend two nights relaxing at the Hotel in Miami. Your room can be paid for with dogecoin or other cryptocurrency. Mark Cuban is also putting his money where it’s at and tweeted that the Dallas Mavericks team shop has seen record-breaking sales using dogecoin.

You will need to convert your dogecoin to dollars to purchase most items. This functionality is available at all online cryptocurrency brokerages and exchanges. Dogecoins are still far from being able to replace traditional currency.

Is dogecoin an investment worth it?

It’s easy to fall for the giddy tales of huge gains and overnight crypto millionaires when it comes to cryptocurrency investing. Gouran says that it’s a good idea to be cautious about investing in any cryptocurrency. He says, “It’s all speculation at the moment.” “Even during the dotcom bubble those businesses were believed to be businesses. Nobody knows what these tokens are.”

Altcoins, tokens that are not bitcoin, can be considered the most risky in digital currency world. “Bitcoin, ethereum and other digital currencies have a more fundamental case. They are real people,” Dale says. “But every bull market, people call it ‘altcoin-season’, because altcoins move more quickly than larger coins. Although people want to be part of these big moves, there are still questions about their long-term value.