What you should know about Dogecoin?

What you should know about Dogecoin?

The history of Dogecoin began at the end of 2013. Billy Marcus and Jackson Palmer, both software engineers, created this coin. They created a special logo for this cryptocurrency. It is special because they used a meme that was popular in those years, on which the word “doge” was spelled incorrectly.Let’s make more detailed cryptocurrency overview.

Bitwave CEO Pat White says “Dogecoin really started making fun of Bitcoin.” The platform began to create various advertising tools and chips in order to raise the cost to exchange cryptocurrency .

Dogecoin, like most modern cryptocurrencies, works on its own special blockchain. All transactions using the Dogecoin digital ledger are constantly updated, and all transactions related to the purchase of cryptocurrency are secure thanks to cryptography.

Miners follow a proof-of-work consensus mechanism to process transactions and record them on the blockchain. There is another interesting detail regarding your will to buy Dogecoin (DOGE). With this cryptocurrency, users can make purchases and make payments. Although, if you look at this feature in scale, it does more harm than good. This is due to the fact that the number of coins in circulation is not limited, for example, unlike Bitcoin, and this makes the exchange cryptocurrency very accessible and inflationary. This stops the cryptocurrency from growing rapidly.

What does Elon Musk say about Dogecoin?  

We all know who Elon Musk is, the CEO of Tesla Inc. and SpaceX and is simply a very influential person in the modern world. Everything he says on a certain topic immediately affects that area. The topic of cryptocurrency is no exception. It is worth noting that Elon Musk generally supports Dogecoin and encourages people to buy cryptocurrency. USA/EN company Tesla accepts this coin and you can pay for selected goods this way and most likely SpaceX will introduce this feature in the near future as well.

I just know a lot of people who are not that wealthy who, you know, have encouraged me to buy and support Dogecoin,” Musk said in an interview with Bloomberg News Editor-in-Chief John Micklethwait at the Qatar Economic Forum in Doha. “I’m responding to those people.”

After these words, users had to pay 7.9% more to buy the Dogecoin cryptocurrency. Polygon and Solana altcoins also rose. Since 2022 is not the best year in the cryptocurrency market, because there is a strong decline, the value of the coin has fallen by 63%.

After any comments or tweets from Musk about his plans to buy Dogecoin, its value increases. In the infospace for the past few years, he often mentions that he buy cryptocurrency. He has bitcoins, dogecoins and ethers in his wallet, and he has no plans to exchange cryptocurrency in the near future.

Is it worth investing in Dogecoin?

Users who bought Dogecoin before the big jump up the cryptocurrency market in 2021 made good money and their investment paid off. Now, as the market is asking, buying cryptocurrency is a rather risky decision. Since this coin is produced in large quantities, it is very unlikely that the price will increase shortly. 

Unlike main cryptocurrencies, meme tokens are much more influenced and any actions or comments by famous people affect their value. In addition, some countries have already introduced certain systems of regulation of the cryptocurrency market, which makes the promotion of token memes even more difficult.

Conclusion

Before making any purchases, you should make a cryptocurrency overview, consider all the pros and cons, and only then invest. It is always better to start trading with a few coins, for greater security and no risk of losing a lot in the event of a downturn. It is also necessary to take into account the fact that often a cryptocurrency investment has a long-term perspective. Never invest your last funds in cryptocurrency. Use different learning platforms to increase your knowledge about cryptocurrency trading.

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John Wayne

I'm a writer, tv show enthusiast and problem solver. I write about what I see and like and love.