What You Need to Know About Dogecoin, The Meme-Crypto
Illustration by Intelligencer: Source
Created in 2013 as a joke originated from the popular “doge” meme, Dogecoin is a cryptocurrency much like Ethereum, Bitcoin, or Litecoin that has recently erupted in popularity. The company’s creators, Billy Markus and Jackson Palmer are software engineers who utilized the funny Shiba Inu dog memes as a sort of inside joke between crypto enthusiasts. They describe their currency as a lighthearted and easy way for individuals to accumulate crypto wealth. The currency works in the same way as the most popular of its kind: with a blockchain, a database that stores information that is then mined for further transactions.
Despite being started as a funny alternative to the already popular Bitcoin, the currency has had recent success in recognition because of the influence of Tesla’s billionaire CEO and his endorsement of the meme-based cryptocurrency. After stating that Dogecoin is his favorite currency on Twitter back in 2019, the company has increased in overall value in the year 2021.
In recent news, Dogecoin prices have skyrocketed in response to Musk’s comment that Tesla will “suspend vehicle purchases with Bitcoin” due to the “rapidly increasing use of fossil fuels for Bitcoin mining”, and that although it is a good idea on many levels, it comes at a great cost to the environment. Consequently, he says that he is seeking other forms of cryptocurrency that reduce this detrimental effect on the environment.
On Friday, Musk said that he is working alongside the developers of Dogecoin to work on “system transaction efficiency” and confirms that he believes it to have a “potentially promising” future. In a Twitter poll earlier in the week, Musk asked whether Tesla should accept Dogecoin, to which his 54.7 million followers responded with an astounding 78.2% yes. In other words, the cryptocurrency has received celebrated acceptance among those interested in the future of crypto.
What Does This Mean for The Future of Dogecoin?
Dogecoin has shown much promise and improvement in quality following its endorsement by Musk. Its recent prices showcase just that, with a 32% jump at over $0.52. Additionally, Coinbase has announced that it plans on adding the company onto its recently public platform in the next six to eight weeks which also indicates that its rise to popularity is certainly making an impact. Its history on Robinhood has upped the currency born from a joke with high volumes of trading that has given it the support it needs to be on par and rival with already booming cryptos such as Bitcoin.