What Is Dogecoin And Why Is It Getting So Popular?
Dogecoin is a kind of cryptocurrency with a strange story behind its origin. Dogecoin was started in 2013 as an easy and fun cryptocurrency and particularly to poke fun at Bitcoin. Building on its fun element, it derived its name from a popular meme that featured Shiba Inu dog.
Initially it had very low value but was still supported by many social media groups. Because of low value, it was being used by many as incentivising people for doing small tasks on social media and the internet like posting content or watching advertisements.
In the recent years as the cryptocurrencies started to gain more popularity, dogecoin wasn’t behind. Further due to support by celebrities like Elon Musk, Snoop Dogg and Gene Simmons, its value skyrocketed in 2021 gaining more that 5000%.
How Dogecoin Works?
Like all the cryptocurrencies, Dogecoin runs on blockchain technology. People can earn it by mining, that is by solving complex mathematical equations using computers. We can also trade it through cryptocurrency exchanges like Binance or Kraken.
Should we Invest in Dogecoin?
The craze for all the cryptocurrencies is increasing worldwide. Recently, even some countries like China are planning to come up with their national cryptocurrencies. But otherwise, it’s still quite risky as cryptocurrencies are not backed by governments and law in general. There is another risk associated particularly with Dogecoin, that there is no limit with regard to the maximum number of Dogecoins, which exists in case of other cryptocurrencies. Thus an unlimited supply of dogecoin will continue to put a downward pressure on its value.
However, it is also accepted that cryptocurrencies are the technology of the future and we should not fear from trying and experiencing new technologies. Keeping the associated risks in mind, some investments can certainly be made in Dogecoins.