Dogecoin is the buzz of the internet. A currency that is clearly hyped up by Elon Musk, the renowned Tesla owner. The cryptocurrency that started out as a parody less than a decade ago has been on a wild ride this year with such vast demand. Dogecoin, which was trading at less than 1 cent to start the year, briefly jumped as high as 74 cents over the weekend, ahead of the “Saturday Night Live” host debut of Mr. Musk, the billionaire CEO. From electric vehicle maker Tesla Inc. on May 8. But what is the use of doge coin? Is it really any worth? People have mixed opinions about doge’s uses but Elon Musk definitely is on the positive side.
At its peak, the cryptocurrency gave an annual profit to date of more than 15,000%, according to closing figures from CoinDesk which is more than quadruple the earnings on the S&P 500, including dividends, since 1988.
However, since Musk’s appearance on SNL, the cryptocurrency has fallen, recently trading on May 10 at about 46 cents or a drop of about 38% from its record high.
What is Dogecoin?
Dogecoin is a cryptocurrency that actually went off as a joke in 2013 and there was no use of doge coin back then. It is a satirical tribute to bitcoin, designed to serve no real purpose other than to generate a few laughs. Actually, this currency is based on an internet meme that had an image a particular breed. That breed’s name is Shiba Inu and the name “doge” came from ‘dog’.
During Musk’s appearance on the show’s satirical news segment, Weekend Update, he was repeatedly asked by cast members Michael Che and Colin Jost to explain what Dogecoin is. Finally, after Mr. Che asked, “So is it a hustle?” Musk replied, laughing, “Yes, it is a hustle.” Not long after the episode began, the price of dogecoin plummeted and continued to fall in the early hours of May 9, figures from CoinDesk shows.
Who Invented Dogecoin?
The developers, Mr. Markus and Jackson Palmer, jointly created dogecoin as a joke in 2013. Even the way people originally obtained the coin was bound to be ridiculous: In exchange for solving math puzzles, dogecoin miners operating fast-running computers received from one dogecoin to hundreds of thousands of dogecoins. Neither of them works on the project anymore, and Markus has said he sold all of his dogecoins in 2015. He made enough to buy a second-hand Honda Civic. (if only he had held to the coins!!)
“The idea that dogecoin is worth 8 cents is the same as GameStop is worth $ 325,” Markus said recently. “Has no sense. It’s super absurd. The design of the coin was absurd. “
What are the most key risks of investing in dogecoin?
Cryptocurrencies are volatile and prone to big swings in any direction. Bitcoin, for example, has exploded this year and as of April 16 it was trading above $ 61,000, compared to less than $ 30,000 at the end of last year. But the cryptocurrency has been prone to pullbacks, including multiple times this year.
- Earlier this year, Tesla said it invested $ 1.5 billion in bitcoin and planned to start accepting cryptocurrency as payment for its products.
- Dogecoin could easily lose 90% of its value, warns Garrick Hileman, head of research at blockchain.com, a cryptocurrency transaction company.
Don’t just invest for trading, invest with the thought that the use of doge coin are tremendous.
How can I buy dogecoin?
Dogecoin can be purchased with a credit card on cryptocurrency exchanges such as Payward Inc.’s Bittrex Global GmbH and Kraken, as well as on trading platforms including popular brokerage Robinhood Markets Inc.
- In February, deVere Group said it added dogecoin to its crypto trading app as demand increased due to what CEO Nigel Green called “The Elon Effect.”
- Online brokerage Webull Financial LLC added dogecoin to its Webull Crypto platform in April. And eToro said on May 3 that it had added dogecoin to its list of offered assets.
It was followed by cryptocurrency exchange Gemini, which announced in May that deposits and trading were available for dogecoin.
Can I buy dogecoin on Coinbase?
Coinbase, which runs the largest US bitcoin exchange, went public on April 14, fueling the enthusiasm for cryptocurrencies. Both bitcoin and dogecoin surged that day, despite Coinbase not offering dogecoin trading.
What happened recently to Robinhood and dogecoin?
Robinhood clients have experienced problems with cryptocurrency trading in recent weeks as demand for dogecoin has increased. The breakage of tweets started flowing on in mid-April which made this currency go beyond its limits.
On May 4, Robinhood users reported again having trouble trading crypto on the platform. A company spokeswoman said the matter was resolved in just over an hour. The platform again experienced problems with cryptocurrency trading on May 9. They were later resolved.
Use of Dogecoin: Can I buy something with dogecoin?
Most traditional online retailers do not accept any cryptocurrency as a form of payment. The folks behind the Shibe Mint website sell copper tokens, stamped with a “D” and the year 2014, for $ 12 each. You can pay for these tokens with dogecoin, but they are currently out of stock. You can also get your doge swag, like a “doge merchant” t-shirt at dogeswag.com.
- The Dallas Mavericks basketball team offers merchandise for sale on dogecoin. Cuban, the team’s owner, tweeted that he had set a 24-hour sales record on April 16.
- The Oakland A’s, the Major League Baseball team, recently announced that fans could purchase tickets to their May 3-6 games with dogecoin.
Exchanges that trade dogecoin will also allow you to convert your cryptocurrency into traditional currencies.
Why is Dogecoin so popular?
Some argue that it is yet another sign of market insanity that has seen increases in shares promoted on online forums. Even though it has been almost a decade since its inception, dogecoin has continued to be loved by a small community that has Photoshopped the dog’s furry face on everything from astronauts to Twinkies. That community is now growing rapidly. ALso, Elon Musk strongly believes that the use of doge coin will increase in the future and it will beat bitcoin some day.
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