Dogecoin has become an intriguing story. A relatively new digital currency based on the internet, it has picked up speed in recent weeks. Its increased popularity is probably due to the interest in alternative currencies following the global credit crunch that hit many countries. Investors have been looking for an easy method of securing their money.
Dogecoin was launched in December 2021. Its creator, Billy Markus, and Jackson Palmer (who did the design work), released a software program that would allow users of the Dogecoin virtual currency to spend it like a regular dollar. The Dogecoin logo was also used as the logo for the Litecoin project, a kind of fore-like coin that was made to compete with the better known bitcoin. In short, dogecoin was created as an attempt to take advantage of the currency phenomenon known as the “Dash”. Dash is the name for a new digital currency launched by a group called Dash, which has since gained a lot of popularity.
As the popularity of Dash grew, others soon decided to jump into the mix, and dogecoin became a great competitor in this emerging market. But what is it about dogecoin that makes it so appealing to investors? The answer, perhaps, lies in its rather whimsical nature. Doge, which was originally a nickname for the Kenyan dog, is an unusually popular name among cryptographers. It’s certainly no coincidence that the first online transaction ever made using doge was done by an anonymous person or group called “Droid”.
One of dogecoin’s distinguishing characteristics is that it is not truly anonymous. Unlike most currencies, most of which are controlled by governments, dogecoin trades are done openly and therefore reveal quite a bit about the owner. However, dogecoin trade is still completely anonymous. This means that even though you are sending dogecoin to another party, nobody else will know who sent it. This feature attracts many people to dogecoin because it provides them with a way to protect their identities while trading securely on the internet.
The second major attraction for dogecoin traders has been the steady growth in the number of new users. Since its inception, the dogecoin community has swelled to over 20 million members. In the first few months of 2021 alone, this number increased by fifty-two percent. This increase has been powered by the growth in the value of the cryptocoin.
Experts say that the reason for this rise is largely due to the increase in value of the doge and a related cryptocoin called chrysochou. Chrysochou is the name of a popular Chinese vegetable. Chrysochou is worth more than a dollar each week at the time of writing, so its value has been steadily increasing since it was created. Many traders speculate that investors will continue to invest in chrysochou and doge as the prices of both foods go higher.
One reason that investors have turned to dogecoin in the first major surge in popularity has been the low commissions associated with trading this new altcoin. As prices rose in the first month of its existence, the commissions dropped significantly, allowing traders to make profits. Many traders believe this low price rise is unsustainable, however, the high value of the cryptocoin combined with the low commissions makes it a strong contender for the top spot in the future.
So what does this all mean for dogecoin investors? Many traders are switching from other coins to doge because of its low trading commission and fast return on investment. If the prediction is true that doge is the future of the cryptocoin industry, then we could very well see a surge in sales of dogecoin products on the internet. This would be good for everyone; sellers get to take advantage of an uptrend in the marketplace, and buyers get to purchase upswings powered investment. Who knows what the future holds for this interesting altcoin, but it looks very bright! Keep watching for doge.