Dogecoin, a meme-inspired cryptocurrency, has been in the headlines lately after hitting a record price of 69 cents on Wednesday. What started as a joke to crypto enthusiasts in 2013 has now become the fourth largest cryptocurrency by market capitalization behind Bitcoin Etherum and Binance Coin. To be sure, Dogecoin has seen a meteoric surge in recent days.
It has managed to make a fourteen thousand percent profit since the beginning of the year
Simply put, Dogecoin is powered by blockchain technology like Bitcoin and Ethereum. The blockchain is a secure distributed ledger that stores all transactions made with a decentralized digital currency. According to experts, the recent Dogecoin surge is anticipating the next appearance of Tesla CEO Elon Musk on Saturday night, May 8. Musk, who once referred to himself as the Father of Doge, enthusiastically supported cryptocurrency and also called it his favorite among all the others.
On February 4 of this year, the price of Dogecoin soared fifty percent after Musk tweeted his support. He posted a photo of the Lion King with Rafiki holding up the Doge meme. Later in March, Musk made headlines again when he tweeted that Tesla vehicles can be bought with Bitcoin, generating even more support behind the cryptocurrency as a whole.
Now let’s see how it all started with Dogecoin:
In 2013, software engineers Billy Marcus and Jackson Palmer created Dogecoin to poke fun at the bitcoin craze. It was inspired by the internet doge meme featuring the Japanese breed of dog, Sheba Eno. To raise the profile of dogecoin, a group of Reddit users would raise funds for publicity stunts, for example by sponsoring a Nascar driver.
Today, Dogecoin is primarily used as a failover system on Reddit and Twitter to reward great content. You can get Dogecoin by being part of an online community that uses digital currency or you can get dogecoins from a Dogecoin faucet.
What is a Dogecoin Faucet?
A Dogecoin Faucet is a website that offers a small aggregate of Dogecoin for free as an introduction to the coin, after which you can start networking in the Dogecoin communities. Basically, the website accumulates these pieces from contributors and then redistributes them to users who request to share them.
Dogecoin is currently competing with the big cryptocurrency players, although it is important to mention that the gap is quite wide. Dogecoin has a market value of more than $ 85 billion, but the top three coins include the $ 99 billion Binance coin, $ 388 billion Etherum, and more than $ 1 trillion of Bitcoin.
According to skeptics, Dogecoin could be on the verge of a major collapse, similar to the collapse of XRP from 2017 to 2018. XRP is a native cryptocurrency developed by Ripple Labs, which was the first largest cryptocurrency until its launch. by Dogecoin recently.
In January 2018, XRP hit record levels of $ 3.84, but prices fell a month later. Only time will tell if Dogecoin has a similar fate.