Dogecoin is a cryptocurrency that emerged from the meme of a Japanese Shiba Inu dog. In the beginning, it was a parody, but it gained value due to the support of several people, such as Elon Musk. The game highlights the dynamics of money: its value is conventional and not intrinsic.
What is Dogecoin?
Dogecoin is a cryptocurrency based on the Litecoin blockchain, based on Bitcoin. It was launched on December 8, 2013, by Jackson Palmer and Billy Markus as a mockery; it alluded to meme culture and took advantage of the growing popularity of cryptocurrencies, especially Bitcoin.
How much is a Dogecoin worth?
In March, Dogecoin was worth US$0.1294, approximately 2.67 Mexican pesos, and there were 132.7 billion DOGE coins. It had more than 17 billion dollars or 350 billion Mexican pesos market capitalization.
In May, the Doge currency had a value of 1.72 Mexican pesos and was close to 21 billion dollars in capitalization.
It makes it the 13th largest market capitalization cryptocurrency globally at the time of writing. Dogecoin has the highest annual issuance rate globally at 100 million DOGE.
Doge and Cheems Memes
Dogecoin arose from the «Doge» meme, a 2010 photograph of a Japanese Shiba Inu dog. The meme went viral at the beginning of the last decade on Internet forums and social networks, especially on Reddit, where it was used to express various feelings and ideas.
The word «Doge» is the slang for the word dog. In recent years, the meme resurfaced due to a new, very similar meme, «Cheems,» and the intervention of multi-billionaire Elon Musk. The meme is based on a photograph of another Shiba Inu, usually next to the original Doge.
Elon Musk buys a Tesla with Dogecoin
Elon Musk, the famous entrepreneur and co-founder of major companies such as Tesla, Solar City, and SpaceX, has strongly expressed his opinion about Dogecoin and cryptocurrencies.
In early 2021, he announced that Tesla would receive payments in Bitcoin. It only lasted four months and claimed the high energy consumption to mine these coins. Still, he has also mentioned that he owns many Dogecoin and that he will accept the currency for the sale of Tesla-branded merchandise, legitimizing the potential of Dogecoin as a means of payment.
Twitter possibilities open up for Dogecoin
Elon Musk bought Twitter last month for $44 billion. Since he is one of Dogecoin’s biggest backers, it was expected that its value would skyrocket 25% in the first 24 hours.
With Musk being the new owner of Twitter, there has been much speculation on social media about the possibility of Doge being accepted as payment for his first Twitter Blue service or other new business avenues. But so far, Twitter or Musk have not disclosed anything in this regard.
Celebrities investing in Dogecoin
Apart from the eccentric Musk, there are other members of the showbiz and investment scene who support the project. For example, fellow billionaire Mark Cuban claims that Dogecoin is the most robust cryptocurrency as a medium of exchange. In addition, celebrities such as Snoop Dogg and Gene Simmons have also expressed that they invest in the currency and support the project.
Shiba Inu seeks to win the battle with Dogecoin
The success of Dogecoin has inspired other similar projects based on famous memes, even of the same canine; for example, Shiba Inu is another cryptocurrency based on the favorite dog, and its goal is to overthrow Dogecoin.
In March, it had a value of 0.000025 dollars, and by May, it had dropped its value to 0.000001175; it is the cryptocurrency with the lowest value in the market but with a good amount in circulation. Five hundred forty-nine billion coins have been issued, bringing its capitalization to $6.452 billion; it ranks 14th, just behind Dogecoin.
Shiba Inu is a very speculative currency, and its high circulation prevents it from increasing in value dramatically. In addition, there are projects to «burn» coins to reduce their circulating amount. It just happened in April, when 11 billion tokens were eliminated.
Other projects such as Floki Inu (named after Musk’s dog), Baby Shiba, or Baby Floki Coin seek to generate traction with the meme and increase its value. However, they are even more speculative bets that want to mimic the success of their predecessors by spoofing their names and capitalizing on the meme.
As ephemeral as «Doge Millionaire»
The term «Doge Millionaire» emerged during Dogecoin’s rally in mid-2021; its price almost reached 80 cents on the dollar. The term refers to those who became millionaires due to their investments in this cryptocurrency.
The most famous case is that of Glauber Contessoto, who, at the age of 33, decided to invest his life savings, around 250 thousand dollars, and bought millions of Doges at an average price of approximately 4.5 dollars. At its peak, his investment exceeded 3 million dollars. Although he did not liquidate his investment by his own decision, and it went down so much that he is no longer a millionaire on paper, his profits are still significant.
Contessoto believes the currency will rise even more in the future, so he keeps acquiring more, so his journey is just beginning.
Let’s buy with Dogecoin!
Dogecoin is not yet massively adopted, but it has gradually gained ground; it is already accepted in some stores (as we saw with Tesla) for online payments or other transactions.
Some of the internet sites that accept meme coins are:
- AMC movies since last November.
- The NBA team Dallas Mavericks. and
- Newegg, a technology products company that welcomed Doge a year ago.
- Streaming platform «Twitch» was the first company to accept this cryptocurrency as payment in 2014.
- Airline AirBaltic could give you a ride around Finland in exchange for a few Dogecoins.
The Dogecoin network has a processing capacity of 56 TPS (transactions per second), which is lower than Bitcoin and Litecoin. Still, it is capable of handling daily transactions. Its website, Dogecoin.info, averages about 9 thousand transactions per day.
Doge’s performance in 2022
Due to Musk’s purchase of Twitter, DOGE rose 25% in April. However, like other cryptocurrencies, these months have not been good for «the meme coin,» it has been going down, registering its maximum of 3.75 Mexican pesos on January 15. Currently, it has a value of 0.087 dollars, which is equivalent to 1.72 Mexican pesos.
Dogecoin 2022-2025 Predictions
According to Wallet Investor price predictions, Dogecoin could reach $0.28 by the end of this year and triple to $0.86 by 2025. DigitalCoin agrees with the prognosis for the end of this year, but for 2025 they are not as positive and predict it will stand at 0.66 between 2025 and 2030.
However, the Price Prediction survey indicated that the price will increase from $0.16 in 2022 to $0.49 and $2.82 between 2025 and 2030.
Dogecoin in Mexico
Dogecoin has also become popular in Mexico, but unfortunately, the adoption of cryptocurrencies in our country has been much slower than in other places. There have been several initiatives to promote Dogecoin in our country.
In recent years, events like the Digital Payments Summit Mexico Chapter included various projects to promote Dogecoin, such as DOGE for payments, the Dogecoin faucet (which gives coins to users), and the acceptance of Dogecoin as a means of payment in various businesses.
Dogecoin: To invest or not?
Dogecoin is a cryptocurrency with great potential, especially as a means of payment. Its price is relatively low, which makes it attractive for investment.
However, it is crucial to keep in mind that cryptocurrencies, especially those of low unit value, are highly volatile and can experience significant fluctuations in price. For this reason, if one wishes to invest in Dogecoin, it is recommended to do so only with a modest amount of money that one can afford to «lose.»
Translated by Shebatt Quiñones.
Last updated: 20/05/2022 by Sarahy Uribe.
Dogecoin is a cryptocurrency based on the Litecoin blockchain, based on Bitcoin. It was launched on December 8, 2013, by Jackson Palmer and Billy Markus as a mockery; it alluded to the u0022Dogeu0022 meme culture.
Dogecoin is currently worth $0.1294, equivalent to about 2.67 Mexican pesos.
Elon Musk announced that Dogecoin would accept to purchase Tesla merchandise.
There are several alternatives to acquiring Dogecoin in Mexico. The most popular are FTX, Binance, and Coinbase, all three with a worldwide presence and millions of users.
Apart from the eccentric Musk, there are other members of the showbiz and investment scene who support the project. For example, fellow billionaire Mark Cuban claims that Dogecoin is the most substantial cryptocurrency as a medium of exchange. In addition, celebrities such as Snoop Dogg and Gene Simmons have also expressed that they invest in the currency and support the project.