Analysis of Dogecoin's Recent Popularity

Dogecoin rose to popularity when it broke 1 cent (US) on Jan. 2nd 2021, a charge reportedly lead by Elon Musk who tweeted “One Word: Doge” on Dec. 20, 2020. Over the next several months Dogecoin would reach over 70 cents (US), but has recently dropped below 50 cents (US) after an SNL bit.  

Dogecoin is a type of cryptocurrency that was created in 2013 by two engineers, one from Adobe and one from IBM. They decided to combine Doge and Bitcoin to create Dogecoin. The engineers responsible claim it was a joke, now the coin is making millionaires overnight. 

Dogecoin has no limit on the amount of coins that can be mined, this means that there is no limit to how many coins will exist and there is a possibility of the supply being more than the demand even after the demand rises. The blocks become more complex so if demand is rising, chances of the coin dropping significantly in value is unlikely but possible.  

Trending

Dogecoin was released in 2013 by IBM software engineer Billy Markus and Adobe software engineer Jackson Palmer. The two jokingly merged the Doge meme with Bitcoin to create Dogecoin, Bitcoin’s open source code rearranged and the coin used the famous Shiba Inu image that became a viral meme. Dogecoin slowly held it’s value until Jan 2nd 2021, when it broke 1 cent (US). Dogecoin continued to rise in value, holding at around 5 cents (US) until April 12, 2021, when it began to climb hitting 37 cents (US) on April 17th. A week later Doge sat at around 25 cents (US), and then a week after jumped up to 72 cents (US) on may 7th, 2021. 

Celebrities

Elon Musk has reportedly been leading the Doge charge with the viral phrase ‘to the moon’. Musk tweeted “One Word: Doge” on Dec 20, 2020 which is connected to Dogecoin prices soaring. Mark Cuban has been a perpetuation of Dogecoin, tweeting “We at http://Mavs.com will continue to accept BTC/Eth/Doge because we know that replacing Gold as a store of value will help the environment” Guy Fieri even tweeted “Rollin’ out to the MOON #Dogecoin” wearing a Doge spacesuit in a photoshopped image. Snoop Dogg tweeted out ‘Snoop Doge’ to Elon Musk as well. 

Cryptocurrency

Dogecoin was one of the first cryptocurrencies and has an unlimited amount of coins to be mined and distributed. Dogecoin has become a viral trend and is rising in price, but I cannot give financial advice as I am not qualified to do so. I wrote an article covering Cryptocurrencies and how they work essentially. Computers solve a mathematical equation that becomes more complicated the more times it is solved, some currencies have a certain amount until there are no more that can be mined. Dogecoin is not one of those, but supply may be outnumbered by demand during the trend, which causes the value to go up as it is traded. I suggest learning as much as possible before making any financial investments and using more than just this source before making any decisions.  

It is unclear where Dogecoin will go in the future, we are guaranteed to see fluctuations like any market, but the variation in fluctuations can only be determined by time itself. Trends and celebrity influence has been a leading role in Dogecoin’s value rises and as time goes on more people will sell and more people will buy which could make this currency rise in value or drop immensely. An expected drop after Dogecoin hits $1 USD would be my best guess at the future, but I am not qualified to say that for sure, and who knows, maybe Dogecoin will go ‘to the moon!’

Photos:

https://pixabay.com/illustrations/dogecoin-doge-coin-doge-digital-6249165/

https://pixabay.com/illustrations/image-set-internet-vectors-3046593/