Sunday, May 22, 2022

DogeCoin, A Multi-Billion dollar joke of the decade

DogeCoin, A Multi-Billion dollar joke of the decade HalfofThe
DogeCoin, A Multi-Billion dollar joke of the decade HalfofThe

Covid 19 has financially crumbled economies around the planet, the United States, The Most financially robust country saw a drastic rise in unemployment during the initial phase of the pandemic. While the world was and still is reeling from the effects of coronavirus, one industry has seen a dramatic rise in popularity over the past year. Cryptocurrency is considered the new “Gold”, investors around the globe are pouring money into various cryptocurrencies like Dogecoin, naively hoping the value of their investment will skyrocket in the future.

One such currency that has seen its value balloon is dogecoin. The story behind dogecoins is quite dissimilar to other currencies like bitcoin and Etherium. Software engineers Billy Marcus and Jackson Palmer created dogecoin as a light-hearted joke, the name of the coin are based on the popular internet dog “Shiba Inu” turned meme. The creators intended to create a fun and accessible currency that could be used for transactions instead of traditional money. This so-called joke has breached 80 billion dollars in terms of valuation. The value has skyrocketed primarily because Elon Musk championed it. Elon Musk has been making the round on Twitter about dogecoin and its potential, causing the value of the coin to rise.

DogeCoin, A Multi-Billion dollar joke
DogeCoin, A Multi-Billion dollar joke of the decade HalfofThe

Given the fact that the supply of it is unlimited, experts have cast doubts on the sustainability of the currency, if the number of coins per year increases without a hard limit, dogecoin will eventually lose its value. More coin means it’s easier to purchase dogecoin thus reducing its demand. Bitcoin on the other hand is limited in supply(21 million is the limit set), which means it would get harder to mine and purchase bitcoin as the current supply closes in on the limit.

The Current value of dogecoin is USD 0.53, a drop in value from its all-time high of USD 0.74. Given the volatility in value, it is ideal for long-term investors, because the value might decrease/increase by 100 % constantly, and selling to cut losses is unwise.

Also read: Will a TESLA car work out in India?

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