Dogecoin is a cryptocurrency designed as a joke by Billy Marcus and Jackson Palmer in 2013 for the purpose of parodying Bitcoin. Dogecoin is an open-source, decentralized network based on Litecoin.
Although Dogecoin was created as a joke, it quickly became popular, with over a million people visiting the website in the first month. The coin began to be utilized for giving, fundraising, and rewards for doing various marketing tasks such as watching commercials after it was used for donations, fundraising, and rewards for performing various marketing activities like watching commercials. There was no real qualitative application and “technology” in dogs for a long time. But then some campaigns for marketing purposes began to accept $ DOGE as payment, for example, the American basketball team Dallas Mavericks, the car dealer Post Oak Motor Cars, the Latvian airline airBaltic, and so on. Well, then Elon Musk happened.
Elon Musk began actively posting memes with dogs in February 2021 (although there were isolated tweets in 2019 — 2020), and by April — May this, coupled with a bullish trend in the market, accelerated the price of $ DOGE to unprecedented heights. At that time, investments and profitability skyrocketed, and everyone who traded coins through a crypto bot was able to earn good money.
In December 2020, the coin could be bought for a ridiculous $0.004, in March 2021 for $ 0.05, and at the peak on May 8, a record $0.7376 was given for a dog. Too much for just memes, isn’t it?
But the hype passed, the price gradually fell, and now $ DOGE costs about 10 cents, which is still a lot compared to what it was at the beginning of last year. However, the following events have recently occurred and technologies have been imported:
- Dogecoin has integrated with the Starlink satellite system. Now, using the new RadioDoge protocol, transactions can be made using radio waves and a satellite. Conducted a successful $DOGE transaction at a distance of 100 miles without internet;
- Elon Musk signs an agreement to buy Twitter, and Binance and venture crypto funds financially help him;
- The integration of cryptocurrencies into Twitter is in full swing. To suggest how $DOGE can be used on Twitter, billionaire Mark Cuban will help us, who suggested that Elon Musk use $DOGE as a tool to combat spam on Twitter, and he called the idea a good one.
“We will add the Optimistic Rollup sidechain on the Dogecoin blockchain. Anyone who invests $1 DOGE will be able to publish an unlimited number of posts. If someone disputes the message and people confirm that it is spam, then they will receive $DOGE belonging to the spammer. The spammer will have to send 100 times more than $DOGE. If the post turns out to be not spam, then the person who challenged it will lose his $DOGE. DogeDAO for victory!” Cuban suggested.
Emission and inflation
In the beginning, only 100 billion Dogecoins were created, but this limit was subsequently lifted in order to encourage the use of dogs and discourage fraud. Every year, $DOGE adds 5 billion coins to the money supply. Now the issue is about 133 billion. However, the inflation rate of $DOGE will decrease over time due to the existing fixed remuneration, which will be divided into a growing issue. According to Nasdaq, by 2040 the Dogecoin inflation rate will drop to 2.4%, and by 2060 it will be 1.6%. Against the dollar, $DOGE is already deflationary, because according to March data, dollar inflation is 8.5% per annum.
Dogecoin is tied to the success of Elon Musk and his Twitter and his tweets. If you believe in Elon Musk, in the prospects of Twitter with him, then long live $DOGE.