What is Dogecoin?
Dogecoin was created in 2013 by two friends as a satirical tribute to Bitcoin, with the intention of making a joke and getting a few laughs, without any real purpose. It was named after the Internet modal (centered on an image of a Shiba Inu dog due to poor spelling habits), hence the use of “doge” instead of “dog”. Now there is a wide range of opinions on how to pronounce the word doge.
But as of May 4, doge has risen more than 100,000% in 2021, more than twice as much as the S&P 500, including dividends, has risen since 1988.
The cryptocurrency reached an all-time high of 61 cents on May 4 before settling at nearly 57 cents at 4 p.m. ET, according to CoinDesk, and we know that dogcoin was less than 1 cent earlier this year. Online brokerage firm eToro said May 3 that it had added dogcoin to its trading platform. Cryptocurrency exchange Gemini followed suit, announcing on May 4 that dogcoin deposits would be open and that trading in the cryptocurrency would begin soon.
As of May 4, Dogcoin became one of the top four cryptocurrencies by market capitalization, with Dogcoin’s market capitalization of approximately $73 billion, surpassing Capital One Financial Corp. and health insurance company Humana Inc. which closed on May 4 with market capitalizations of approximately $69.4 billion and $59.7 The latter closed on May 4 with market capitalizations of about $69.4 billion and $59.7 billion, respectively.
What exactly is the reason why dogcoin was able to cause such a big rise?
FOMO has a lot to do with it.
“People are trying to recapture the magic that bitcoin created for first movers,” said Michael O’rourke, chief market strategist at JonesTrading. “The key difference here is that bitcoin has a cap and there will be a finite number of bitcoins.”
The fixed supply of bitcoins since the start of the issue in 2009 is 21 million. But that’s not the case with dogcoin: there is no limit to the number it can create.
Avid enthusiasts may use this fact to compare dogcoins to fiat currencies. Of course, there is no cap on how many dollars the U.S. government can print, similar to that of Bitcoin. However, while there are many emojis and jokes behind dogcoins, the U.S. dollar represents the U.S. economy and population.
“Other than as a speculative tool, I still don’t know what the purpose of dogcoin is,” he said. “You’re just guessing at something that exists because people are guessing at it. It’s a very dangerous combination.”
On Jan. 28, Musk, the owner of Tesla Inc. tweeted a fake Dogo (Dogue) magazine cover.
Since then, he has been tweeting about this cryptocurrency. At one point, he shared an emoji based on the movie “the Lion King” with Simba’s face painted with a Shiba Inu. On another occasion, he wrote: “Who put Doge out there?” “No peaks, no valleys, just Doge,” he tweeted, perhaps as a favor, an instructional video he called “D is for Doge.
In April of this year, Musk renewed his interest in the cryptocurrency, writing on twitter, “Doge barking at the moon.” Musk also recently admitted that a tweet suggested he should perform a skit on THE DOGEFATHER (The DOGEFATHER) when he appeared on Saturday Night Live (Saturday Night Live) on May 8.
His cryptic comments sent the cryptocurrency’s popularity soaring, with musicians including rapper Snoop Dogg, Soulja Boy and Kiss frontman Gene Simmons sharing emojis and tweets with fans.
Slim Jim, a jerky snack from mainstream consumer brand Conagra Brands Inc. also joined the dogcoin bandwagon, calling for it to “go to the moon” on April 13. Other brands are also taking an interest in dogcoin, with Mars Inc.’s Snickers brand tweeting on May 3 that “maybe we should just #dogcoin to the moon.
Doge started out as a joke, but has grown to a level of Wall Street that requires a certain level of seriousness. While Doge’s founders designed it to be worthless, both omitted the cap on the number of new Doge coins that can be made (a supply-limiting feature of respected cryptocurrencies like Bitcoin). Cryptocurrencies have all confused their blueprints and subverted the assumptions of their creators that just because something is worthless, it will not become valuable.
Dogecoin has become emblematic of a new genre of modal investing, a trend that has helped push up the stock prices of other nostalgic brands like GameStop and AMC. Together, they’ve turned the traditional concept of value on its head:Forget any reasoning about what makes a reliable investment; today, just enough people say anything has value. It worked for GameStop, and it worked for Doge.
“Dogecoin’s latest price increase doesn’t mean the cryptocurrency offers any meaningful value, it’s just a surge of interest from people hoping to get rich quick.” This could be an interesting bet, but not a good investment. If you’re the one who still holds the coin when the market is down, you may regret betting on it in the first place. — David Kimberley, analyst at Freetrade, a UK-based investment app
“It’s influenced by headlines, tweets, celebrity or company endorsements, and while ‘traditional’ investors may despise it, it brings the masses to cryptocurrencies.” The masses understand the headlines, tweets and endorsements, and they may become crypto enthusiasts and begin to appreciate the more nuanced aspects of crypto. — Michael Kamerman, CEO of Skilling, a Scandinavian brokerage firm
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/dog-coins-are-going-up-to-the-moon-what-is-the-reason-for-the-rise/
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