Dogecoin is a form of digital currency. It’s a decentralized cryptocurrency based on the doge meme. So what does “decentralized” mean? It means that any company or person does not run it. It’s fully open-source, so everyone who has access to the internet can invest in Dogecoin using their own money.
Since Dogecoin is a decentralized currency, it also uses a decentralized network. Meaning the entire system itself is not secured and monitored by the government. Therefore, all the risks and liabilities of investing in Dogecoin will solely be your responsibility.
And similar to other cryptocurrencies such as Bitcoin and Ethereum, Dogecoin also runs on a blockchain.
So how did it become famous? Here are some Interesting Dogecoin facts.
Originally, Dogecoin started as a joke. However, Billy Markus, an IBM software engineer and Jackson Palmer, an Adobe software engineer, decided to create an online payment system in 2013. And it features the face of the Shiba Inu dog from the famous doge meme.
When it was first introduced online, it immediately had a cult following, and the community has grown ever since. And according to recent reports, its current market capitalization is around $85 billion.
In 2014, three significant events happened. These events were fundraising events that eventually helped build the popularity of Dogecoin among people.
First, a Reddit user crowdsourced $50,000 to sponsor the 98 Ford Fusion. Nascar racer Josh Wise drove this car. The car was named “Moonrocket”, and they finished twentieth after the race. Since then, the Dogecoin-sponsored cars have been racing along with others.
Dogecoin also sent money to the Jamaican Bobsleigh team to help them attend the 2014 Olympics in Sochi. The Dogecoin community raised the needed funds, and they also sponsored another Sochi athlete, Shiva Keshavan.
The Dogecoin Foundation, led by Eric Nakagawa, also began collecting donations for their project Doge4Water. This campaign aimed to help build a well in Kenya in cooperation with Charity: Water, a non-profit organization that helps provide safe drinking water to developing nations.
Recently, Elon Musk has been very open when it comes to cryptocurrencies. He has been tweeting about Dogecoin and Bitcoin for quite some time now. And he has fully supported cryptocurrencies by investing in them. He even considered himself as the Dogefather.
Benefits and Risks of Investing in Doge
Dogecoin is in the top five cryptocurrencies when it comes to market capitalization. The list includes Bitcoin, Ethereum and Binance Coin. So what are the benefits and risks of investing in Dogecoin? Well, cryptocurrencies are highly unpredictable. So you can either gain a lot or lose a lot of money in just a short amount of time.
But this volatility is what day-traders prefer. They look for opportunities to buy and sell within the day. But, these day-traders have the knowledge and skill set needed to execute such trades properly. So if you are still new when it comes to trading, it’s best to stay away from cryptocurrencies in the meantime.
Dogecoin, same with other cryptocurrencies, are pretty volatile, so if you are the type of person who is more risk-averse. Investing in cryptocurrencies is not the best option for you. You may want to look into other investment opportunities that are less risky.
There are so many options and opportunities online to grow your money in this digital age with technology. However, it would be best if you did your due diligence.