Dogecoin, the meme cryptocurrency that started as a joke has started to grab people’s attention. It was started as a joke in 2013 by two software engineers named Billy Markus and Jackson Palmer. They invented this cryptocurrency because of the multiple cryptocurrencies that were being launched at that time. Recently, Dogecoin started to grab people’s attention because of tweets by Elon Musk and Snoop Dogg.
This cryptocurrency is represented by a Shiba Inu dog. At the time it was created, its founders never thought that Dogecoin would become famous and people would start to invest in it.
The technology behind Dogecoin is similar to that of Litecoin. Litecoin’s technology is based on Bitcoin. So indirectly, Dogecoin’s technology is based on Bitcoin.
What’s The Difference Between Dogecoin & Bitcoin?
The biggest difference between Dogecoin and Bitcoin is the number of coins. Bitcoin has a limited number of 21 Million coins. Those 21 Million coins are in circulation, which is why the price of Bitcoin keeps increasing. The price of any entity will go up when the demand will be more than the supply.
But that is not the case with Dogecoin. As it is based on Litecoin, there is no limited supply for this cryptocurrency. Currently, the number of Dogecoin in circulation is 128.20 Billion. The number increases each year by 5 Billion coins. That is a massive number of coins for a cryptocurrency.
The huge supply is a reason that the price of Dogecoin is at 5 cents. But the huge supply is not the only reason for it.
In the next sections, we’ll talk about the other reasons for Dogecoin’s low value and the future for this “meme coin”.
Reasons For Dogecoin’s Low Price
As discussed in the previous section, the reason for a low price is not only the huge supply. Another major reason is that this cryptocurrency has just started to become famous. Influential people like Elon Musk and Snoop Dog have contributed to it.
Also, it is difficult for people to accept a cryptocurrency in today’s time because of the increasing number of fake cryptocurrencies. An extremely famous cryptocurrency that scammed a lot of people and investors was OneCoin. It was a bogus cryptocurrency that was working on a high-risk Pyramid scheme.
Unfortunately, OneCoin is not the only fake cryptocurrency. Many currencies launch and fail within a few days because of their intentions of scamming people.
All these reasons are responsible for the low price of Dogecoin.
Future Of Dogecoin– The Meme Cryptocurrency
Even after so many factors against Dogecoin, the future seems bright for this cryptocurrency. With investments from Elon Musk and many major players, there is a high probability that people would start accepting it in the future.
Currently, the market cap of Dogecoin is at $7 Billion. Surprisingly, a single investor owns 28% of this cryptocurrency in circulation. Elon Musk wants the major holders to sell their coins. He believes that because of the major holders, there is a lot of concentration in this cryptocurrency.
If what Elon Musk wants happens in the future, then Dogecoin, the meme cryptocurrency is sure to become the cryptocurrency of the future of Earth.
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