What is Dogecoin? should you buy it?

What is Dogecoin? Should you buy Dogecoin?

If you are exposed to the internet, you must have seen a Shiba Inu(a Japanese dog breed) staring at you from the edges of his eyes and often looks funny. Whether you have seen them in some meme where they are intended for humour or you have seen it in the context of the crypto market, well, it’s interesting to know in both the context the doge has had a fair share of fun. Dogecoin has been one of the most famous and defamed coins at the same time. While it has made many investors rich on one hand, it has broken many of their nerves. So, let’s get into the interesting case of Dogecoin, should you buy it?

What is Dogecoin?

Dogecoin is a cryptocurrency made by Billy Markus and Jackson Palmer, two software engineers who created it for fun and aimed the market with investors beyond Bitcoin. Launched in December 2013, this is a P2P, open-source currency, which was made as a joke making fun of the bizarre speculation in the crypto world at that time. The coin was forked from Litecoin which essentially means it has a major portion of code similar to that of Litecoin.

The logo itself has an interesting history as it was a photograph from 2010 which later got viral as a meme in 2013. It was entitled “top meme” by Know your Meme in 2013. doge

Dogecoin is an altcoin which has some amazing features such as the use of a scrypt algorithm. Scrypt is basically a password-based key derivation function. Basically, the algorithm that is highly used in cryptography, makes it costly for the attackers to hack on a high scale. This makes DOGE a safe coin according to the resources and market scenario of 2013. It also provides low prices and unlimited supply.

History of Doge

Initially, the company used a randomized reward for block mining but was changed to static mining the very next summer. DOGE saw an amazing jump of 300% within just two months of its launch, supported by China’s laws to stop centralized associations, such as banks, to invest in cryptocurrency.

Also when we talk about the history of this coin we cannot forget to mention the name of the new CEO of Twitter, which also owns Tesla, SpaceX and many companies. Elon Musk is a name tightly associated with the history of DOGE. He often kept tweeting about dogecoin and due to his influence in the market dogecoin prices increased drastically, also he bought a huge volume of DOGE for Tesla and that was another reason for the sudden boost in the terms of popularity as well as the price for dogecoin.

Looking at the price history it has been a fun ride for the coin

Tracing back from the data available from Jul 2017, dogecoin opened at 0.002 USD with a volume of 222 Million. It ended the year at the highest price of 0.011 USD but it saw a huge jump in volume as it grew to 62.84 Billion in Oct 2017.

In 2018, it opened at 0.008 USD and touched its highest price of 0.019 USD in Jan. It didn’t show many dramatical curves this year. The volume varied between 5.43 Billion as the lowest and 69.53 Billion as the highest in 2018.

Likewise was the next year 2019. It oscillated between the price of 0.001 to 0.004 USD. But it crossed the 100 Billion mark in terms of volume in the month of May and ended the year with a volume of 114.1 Billion.

The year 2020 was no different in terms of price as 1 DOGE cost between 0.001 to 0.1 USD and this was the highest of all time for the coin. Its volume crossed the mark of 1000 Billion in April 2020 which made it to the headlines that year.

It was 2021, and fortune was knocking at the doors of DOGE. This was the year which spread the name of the coin worldwide. Witnessing a jump of 689% in the first month, the coin which was at 0.004 USD in Dec 2020, was now at 0.03 USD in Jan 2021 with a volume of 658 Billion. Later in April 2021, it again saw a jump of 526% and reached its all-time highest of 0.4 USD. But this was not the bar, the coin went up to 0.7 USD in the next month. With an uncertain but best year in its history, DOGE closed at 0.17 USD in 2021.

2022 has not been as good as the previous year for the coin but it is still in a better place when compared to the early years. It opened at the price of 0.17 USD and touched the highest of 0.21 USD. Its volume dropped from 100 Billion and has not touched that mark till the date of drafting.

Table
Historical summary of DOGE(July 2017- Sep 2022)

Drafting in the last week of October, DOGE is at 0.1025 USD with a total supply of 136.67 Billion, also, It has a market capitalization of 13.52 Billion USD.

Dogecoin price

Future of DOGE

The future of DOGE is a controversial topic among market experts. Some of them predict the optimistic days ahead whereas some see it going towards the end.

Analysing the market sentiments and views given by the experts of the domain, dogecoin will witness a gradual rise in 2023 and by mid of the next year, it would cross the 0.1 USD mark and go up to 0.2 USD and can suffer a down to 0.06 USD.

In 2025, it is expected to reach the 0.6 USD bar as high and might see a depression of 0.2 USD. The price would revolve around 0.4 USD in 2025.

Experts predict its rise nearly to 1 USD in 2030  and would have an average price of around 0.8 USD.

Different price predictions of various agencies are

  • GOV Capital
    • 0.162 USD in one year
    • 0.867 USD in 5 years
  • Digital Coin Price
    • 0.08 USD by the end of 2022
    • 0.13 USD by the end of 2025
    • 0.29 USD by the end of 2030
  • Price Prediction.net
    • 0.37 USD by the year 2025
    • 2.42 USD by the year 2030
  • Trading Beast
    • 0.08 USD in 2023
    • A highest of 0.12 USD in 2023

Should you buy DOGE?

Dogecoin has seen a glorious rise and a heartbreaking fall but isn’t this the basic rule of the market? It involves risk but dogecoin holds the potential of a good return on investment. So, in my opinion, DOGE should be bought again, not for a short-term return of investment over a small volume of money, but for a long term and that too on a considerable capital.

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