Dogecoin (DOGE) became the most famous meme coin originating from an internet meme. It has since become one of the top ten cryptos by market cap. Dogecoin is a cryptocurrency that serves as a means of payment and a store of value.
Dogecoin is a fork of Bitcoin and uses a consensus algorithm called Auxiliary Proof of Work. DOGE is also very fast for a Proof of Work blockchain.
Dogecoin's value soared with the support of billionaires Mark Cuban and Elon Musk. As a result, many online sellers now accept DOGE as payment. Many crypto exchanges list DOGE, and it is highly speculative.
What gives Dogecoin its value?
Just like any other asset, it boils down to supply and demand. There's a massive supply, so demand had to skyrocket for the coin to gain value. And skyrocket it did, especially in early 2021. The price skyrocketed by 7,000% for several reasons.
One of the reasons was the influence of Reddit users. Another reason was the cryptocurrency boom. Additionally, Elon Musk's tweets, including his appearance on Saturday Night Live, also played a significant role in the price increase.
The social media frenzy around Dogecoin's rise fueled even more interest, creating a cycle of rising prices and attracting new investors. But be warned, it's still a very volatile investment.
Dogecoin was created as a joke by two friends from Reddit. These friends are Billy Marcus and Jackson Palmer. Interestingly, they had never met in person. They mashed up two internet favorites at the time: Bitcoin and a Shiba Inu meme that humorously misspelled "dog."
The Dogecoin website had more than one million visitors in its first month, which was unexpected. What's funny is that Dogecoin is a legit cryptocurrency with its own blockchain and mining system, much like Litecoin. The low cost and ample availability of it have attracted speculators who believe its worth will continue to rise.
In October of 2023, about 133 billion DOGE coins are in circulating supply.
