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One such cryptocurrency which no one has ever heard before has suddenly become very popular, that within last 1 month its price has increased to 900 %.
Today we are talking about Dogecoin. Dogecoin on a random particular day became trending on Twitter. How did this happen, why is Dogecoin price is increasing, what reasons are behind it, where is this cryptocurrency being used?
Let's start the Dogecoin story from starting. In 2013, this meme shown on-screen became very popular. Here in this meme, Shibu a Japanese dog picture is there, along with the wrong English mentioned, and this became very popular. This because so much popular that Knowyourmemers, a meme website stated this meme as a top meme in 2013.
One day Adobe's software engineer Jackson Palmer tweeted stating that Dogecoin can become the next thing. This tweet unexpectedly got so much response, that he bought a domain called Dogecoin.com, which is span one month got more than 10 million visits. He wrote on his website Dogecoin.com, that whoever can help to bring Dogecoin into reality can come to me.
After that IBM's software engineer, Billy Markus contacted his, and both of them together brought Dogecoin into reality. After bringing this into reality, Dogecoin gained tremendous popularity. Dogecoin, cryptocurrency became very popular on Reddit as well. In 2017 starting, Doge coin's full market value was $20 million, which at the ending of 2017 went to $2 billion.
After 2017, there was no such activity in this currency in this cryptocurrency, but for the past few months or say past 1 year there have been some activities, and behind this, there are many reasons, which we discussed one by one.
In contrast to Bitcoins, whose most extreme conceivable number is fixed at 21 million (a figure that is assessed to be reached by 2040), Dogecoin numbers don't have a maximum breaking point, and there are as of now more than 100 billion in presence.
When the crypto coin was originally removed, the online local area that was supporting it welcomed consideration by supporting whimsical causes, for example, supporting Jamaica's toboggan group at the 2014 Winter Olympics. Additionally that year, the Dogecoin people group gave $55,000 worth of the advanced token to a Nascar driver in the US.
Behind DogeCoin Price Rise There Are Mainly Two Reasons
1) Elon Musk
First, let's talk about Elon Musk. Elon Musk for quite a long time is tweeting in favor of Dogecoin. And you must know that whenever Elon Musk tweets about some things not only the world but the stock market and cryptocurrencies also move from it. Whenever Elon Musk tweets, this impact is powerful. When he tweeted about a signal, a growth in the signal user base was also seen. Also when he tweeted about Game stop then the share prices of Game stop increased crazily. Thus, because of Doge coin's tweets by Elon Musk, this also popularized a lot.
2) Reddit Users
There are two Reddit groups, Walls street bets, and Satoshi street bets. Here Reddit user's target is to increase the Dogecoin price and bring it to $1 per coin. Currently, the price of Dogecoin is $0.06, so their target is to get this to $1, and for this, they have formed a community and by being united they are purchasing Dogecoin, and thus they planned that until and unless Dogecoin doesn't reach $1 they will not sell it.
Why Are People Investing In Dogecoin?
This main reason is that people are looking at it, not as an investment but they are looking at it as culture/community. People who are investing in Dogecoin are building up a community and this community takes up new initiatives. For instance, the Jamaican Bobsleigh Team was qualified for the Winter Olympic game but they did not have money for participating in the same. For this Dogecoin donated $50,000 for them, due to which this team went to Winter Olympic Team. Just like that, they have helped many players also. For a country like Kenya, where there is water scarcity thus, to solve this problem they took many initiatives. So this way, the dogecoin community helps in fund-raising, social causes.
Problems Related To Dogecoin
- The 1st problem related to this is that supply is quite huge. Currently, 100 billion Dogecoin are available and now every year 500 billion Dogecoins will come. If we talk about Bitcoin the supply is limited. Overall only 21 million bitcoins will be their existence.
- Another reason is that for the past many years, the software update has not happened for Dogecoin. Also, no new technology has been used for Dogecoin. The innovative technology of Bitcoin has been used here. In Bitcoin, many new technological initiatives have taken place. But this did not happen in Dogecoin. Thus, to summarize this whole Dogecoin, we can say that more than the investment it is community.
It is agreed that Dogecoin has given a lot of return for the past few years but when the euphoria gets finished then the chances of price decreasing is also a lot.