Everything you need to know about Elon Musk’s favourite cryptocurrency
Much value, very crypto.
What started off as a parody cryptocurrency is seeing a 14,000% rise in value this year. Dogecoin now overtakes Elon Musk’s SpaceX market cap. In recent events, Dogecoin, a total joke of a cryptocurrency actually peaked at US$0.79 (approx. HK$6.14) a coin with a market cap of US$78 billion. To put that into perspective, that’s bigger than companies like Honda Motors, Activision Blizzard, and Dell. They also overtook SpaceX, which is lead by Elon Musk, one of Doge’s biggest supporters. However, the question you might be having is – What is Dogecoin? Invented by software engineers Billy Markus and Jackson Palmer in December of 2013, it takes after a cult internet meme and good boy, Shiba Inu, the “Doge” dog.
It was intended to satirize bitcoin, which is the golden grade of crypto. Well, kids, the joke’s over. Dogecoin is now a top-10 cryptocurrency and a serious money chip in the market and it’s due to a few reasons.
What is Dogecoin?
The first reason why Doge has been peaking off late is because of the Dogefather himself. Musk Tweeted on 7 May that he would be appearing on SNL. Traders speculate that he will talk about Doge there, resulting in a serious rise. Since this crypto is perhaps one of the cheapest and most affordable ones, everybody’s been joining the party. At the time of this article. it values at US$0.65 a coin, while less than a week ago it was recorded at US$0.31. Do the math. One of the reasons why it’s so affordable compared to other cryptos today is because it doesn’t have a limited market cap like bitcoin. You can have as many as you want and having this as an option plays a key determinant in its price.
Elon Musk has been consistently talking about Dogecoin and in a recent interview with TMZ he was asked “Will Dogecoin become the next currency?” he replied, “I think it should be the vote of the people. There is a good chance that crypto will be the future. But we don’t know which one it’s going to be, maybe it will be multiple. However, people shouldn’t invest their life savings in cryptocurrencies. That’s unwise considering it’s all about speculation.” Commenting on Dogecoin’s rise, he said “The currency that was invented as a joke, becomes the real currency. And, to the moon”.
On the other hand, Mark Cuban tweeted over the weekend “If interest rates skyrocket or the amount spent falls or stagnates, so will Doge. Yes, a joke is now legit,”. We’re also seeing celebrities drop in on this. Rapper Meek Mill stated that he invested US$50,000 in Dogecoin, which he did when it was priced at US$0.50. Imagine if that simply reaches the dollar mark after Elon Musk’s SNL show. The craze for the crypto got so bad that WazirX, a trusted crypto-investment app actually had its servers crashed. In an official statement they said “Doge’s sudden price movement has caused a massive surge in our traffic. We’re seeing more than a 1000% spike in concurrent users as” In the past month, Dogecoin’s value has gone 10x.
(All images: Courtesy Getty Images)
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