Dogecoin, the cryptocurrency that started as a meme coin, but became one of the leading cryptocurrencies within a short span of time. Billy Markus and Jackson Palmer, the developers of this coin, were also surprised to see such a massive growth over a short period of time.
In today’s article, we’ll share some history about Dogecoin. And then we’ll describe the potential future trends to give you an idea of how Dogecoin is going to contribute to the crypto space in the future. So, let’s get started.
History of Dogecoin
Billy Markus and Jackson Palmer introduced Dogecoin back in Dec 2013 just to make fun of wild speculation of cryptocurrencies because they thought that cryptocurrencies are getting unnecessary attention while they aren’t even worth it.
The developers introduced Dogecoin as a “Fun and Friendly Internet Currency” because they couldn’t calculation the true potential of cryptocurrencies. It wasn’t a big deal because cryptocurrency appeared as a completely unique trend at that time.
Surprisingly, Dogecoin went beyond the expectations of its developers and it became one of the top 10 cryptocurrencies with a market cap of $88 million dollars. Many investors consider it a more friendly and approachable alternative to Bitcoin.
Still, we can’t deny the fact that Elon Musk, Snoop Dogg, and several other celebrities contributed to increasing the popularity of Dogecoin in recent years. It was just because of these celebrities that Dogecoin managed to build one of the biggest communities in the crypto space.
This community has funded a number of charitable efforts and other projects during these years. Dogecoin is also used as a tipping service to appreciate the efforts of users who deserve recognition for their posts.
Dogecoin Became More Popular among Miners
The problem with other cryptocurrencies is that they’re deflationary while Dogecoin is inflationary. It means that other cryptocurrencies have a hard supply cap of coins. Thus, the miners won’t get rewarded as much as they’re being rewarded today.
But that’s not the case with Dogecoin because it has an unlimited supply of coins. So, the miners found it more attractive because they could see a huge long-term potential in it. The miners realized that other cryptocurrencies won’t accommodate the expenses of running a mining rig in the long run.
Dogecoin vs Bitcoin
Dogecoin was launched in 2013 as a joke while Bitcoin’s founder was dedicated to introducing a decentralized digital currency to the world. However, Dogecoin’s developers also became serious about the project when they saw a massive response from the users.
Dogecoin’s hash rate is pretty low as compared to Bitcoin because Dogecoin supports GPU mining and Bitcoin runs on the ASIC method. Furthermore, Bitcoin has a limited supply of 21 million coins but the Dogecoin has an unlimited supply.
The interesting thing about Dogecoin’s blockchain is that it processes transactions within a minute while Bitcoin’s blockchain takes around 10 minutes to complete a transaction. That’s because Bitcoin’s encryption method is a bit complicated.
Unlike Bitcoin, Dogecoin doesn’t have any concept of halving due to which an unlimited amount of blocks are being added to the system every day.
Future of Dogecoin
Investors need some solid reasons before investing their money into a project. The problem with Dogecoin is that it hasn’t seen any significant change since 2015. The only reason for its popularity is the tweets from different influencers. Elon Musk, the CEO of Tesla, has played a vital role in making it popular among people.
He once mentioned in his tweet that Dogecoin is the crypto of people. But that’s definitely not enough for investors who want to invest their money in some serious business. So, let’s talk about the future prospects of this coin.
Dogecoin for SpaceX
SpaceX is a unique project of its kind. The main goal of this project is to reduce the transportation costs of space rockets to promote the colonization of Mars on a bigger scale. People are eagerly waiting for the success of this project because it will take tourism to a completely different scale.
Elon Musk, the founder of SpaceX, mentioned in a recent interview that the company is planning to use Dogecoin for its space mission. But we didn’t see any further development after that because Elon Musk mentioned in the interview that his team is working with the developers of Bitcoin to fix the flaws.
Once SpaceX and Dogecoine’s management made an official statement about this contract, we’ll see a sudden spike in the price of Dogecoin. Therefore, many investors are already taking positions in the coin to make sure that they don’t miss the opportunity.
Dogecoin for Tesla
Tesla is one of the most popular car manufacturers these days. In fact, Elon Musk earned a great reputation globally just because of this project. This car company started accepting Bitcoin and other cryptocurrencies some time ago.
A few months ago, Musk made a few statements mentioning that he finds Dogecoin more eco-friendly as compared to Bitcoin because Bitcoin’s ledger uses more energy for completing a transaction. These statements discouraged a number of Bitcoin’s investors due to which Bitcoin’s dropped within a few days.
However, it raised a perception that Tesla will start accepting Dogecoin in the future for their car units. Probably, that’s the reason why Dogecoin’s management increased its efforts to eliminate the flaws to make Dogecoin a safe option for businesses willing to use a cryptocurrency for their transactions.
Should You Invest in Dogecoin?
Well, Dogecoin is still a meme coin because we haven’t seen any serious development so far. But we must admit that it’s the most stable coin with such a huge supply of coins. Investors can invest a partial amount of money in this coin if they don’t want to miss a sudden spike.
But it doesn’t seem to be good enough for a long-term investment because there are still some flaws in its system that need to be fixed.
Dogecoin is an expensive meme coin with potential future prospects. The project was started as a joke but its founders realized its importance right after its launch. Unlike other leading cryptocurrencies, we haven’t seen any significant developments in this project. But based on statements of some influential people, it’s expected that Dogecoin will outrank most of the cryptocurrencies in the future.