The 1500% rise of the Dogecoin meme crypto in a month and a half has suddenly enriched a large number of people.
What is this cryptocurrency, why is it so popular.
The start of 2021 in the global economy and financial markets turned out to be hot:
- oil costs $ 60 again;
- Wall Street Bets nearly ruined several hedge funds;
- bitcoin soared to $ 47,000 thanks to institutional money, as well as Elon Musk, who through his company Tesla bought BTC for as much as $ 1.5 billion;
- stock markets are rising.
The US Federal Reserve is preparing to allocate a new stimulus package for $ 1.9 trillion.
Among all this abundance, another interesting phenomenon can be distinguished – the rise of Dogecoin.
What is Dogecoin
Dogecoin cryptocurrency was created on December 8, 2013 by a programmer from Portland, Billy Markus. Marcus planned to create a cryptocurrency that would be gladly used by a large number of people of different segments of the population. In addition, the creator of Dogecoin wanted to distance himself from Bitcoin, which was associated with the drug trade at the time. Dogecoin is a meme cryptocurrency, the community of which treated it as a kind of fun candy wrapper, but with practical benefits.
For example, the Dogecoin community has repeatedly supported charity fundraising:
ü In January 2014, they managed to raise $ 50,000 for the Jamaican bobsled team to compete in the 2014 Winter Olympics. The Jamaican national team qualified for the Olympic Games but did not have the financial means to compete.
ü In the spring of that year, the community raised about 70 million DOGE, the equivalent of $ 55,000 at the time, to fund NASCAR racer Josh Wise.
Why Dogecoin has grown
It all started with a joke tweet from Elon Musk that he is the CEO of Dogecoin. The joke was appreciated by the community and the DOGE course grew as a result. A little later, the sensational movement of Wall Street Bets picked up the baton, which used the profit made on the growth of GameStop and AMC shares to “pump” Dogecoin cryptocurrency. At some point, the price of cryptocurrency began to fall naturally at a rapid pace, but the famous hip-hop artists Snoop Dog and Kiss Gene Simmons did not allow the coin to collapse.
Reasons for popularity, differences and advantages
The main task of the developers was to create a network with coins that are very affordable in terms of price. Even today, after the coin has grown in value dozens of times, its value continues to be less than a cent. This circumstance determines the popularity of “fun cryptocurrency” as a tool for easily transferring very small amounts, which is used primarily for charitable fundraising, investments, etc.
However, the main reason for the popularity of the coins of this network is the speed of transactions, which are many times faster than in many networks. In addition, the commission paid when transferring funds is rather symbolic (1 DOGE), which cannot be said about the rest of the crypto networks. For example, in order for funds to be transferred to the addressee within a reasonable period, Bitcoin users are forced to pay much more in order to avoid waiting for the transfer for several days. It is much faster to transfer 1 doge to btc.
Bitcoin followers usually argue that Dogecoin’s very existence undermines what they see as the common goal of the entire cryptocurrency movement, that consumers should be freed from an archaic monetary system, while Dogecoin followers believe that Bitcoin users are over-emphasizing the opposition to Bitcoin and dollar.