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Dogecoin: Why is Elon Musk Rooting for it?

by Kareena Dodeja
Dogecoin: Why is Elon Musk Rooting for it?

March 3, 2021

Social media can influence anything. From giving air to rag-to-riches stories, to unsuccessfully orchestrating a coup, social media holds enormous sway over our everyday activities. And the sway it holds, can be witnessed in the digital town's latest talks, a cryptocurrency inspired by a meme of a dog - 'Dogecoin'. It has gotten so big that even Tesla founder Elon Musk is backing it. Let's find out how, what started as a joke, has now been propelled into the proliferating world of cryptocurrency.

Dogecoin is a digital currency designed in 2013 as a joke based on the ‘doge’ internet meme that blew up online. The dog is a Shibu Inu, which has a surprising look, and this satirical currency is the most talked about today.

Dogecoin was initially created as a currency for online purchases, donations, and crowd-funding efforts. One such example is the 2013 Jamaican Olympic bobsled team, which got crowd-funded by dogecoin digital currency.

Dogecoin creators and engineers Billy Markus and Jackson Palmer have also helped provide clean water for different parts of the world sing the cryptocurrency. They have funded several charitable projects and even sponsored a NASCAR event.

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Dogecoin blew up in value

According to CoinMarketCap, Dogecoin blew up because of its internet popularity and has been up more than 1600% so far. The surge has boosted its market value to more than $10 billion, which has brought a lot of attention to it recently. Stock traders have switched to investing in cryptocurrencies, and there has been a blatant shift in this sector.

Dogecoin is similar to Tipping

Dogecoin can be used to tip users for their posts, almost like a ‘like’ but much better. One may ask – what is so unconventional about it? Well, it is inflationary, so there is no limit to the number of coins in circulation.

Other cryptocurrencies have a cap on them which makes them less profitable for miners. Miners could quickly be rewarded through Dogecoin- this is a great incentive to mine more coins.

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Elon Musk and Dogecoin go way back.

"Who Let The Doge Out"- Elon Musk

Celebrities have shown their avid interest in cryptocurrency by cheering on their social media, including Tesla’s Elon Musk, Snoop Dogg and Gene Simmons. Elon Musk has been an enormous supporter of Dogecoin for years, and every time he tweets about it, the prices blow up.

Mark Cuban, the Billionaire investor, tweeted that he would buy Dogecoin if he had to choose between buying a lottery ticket or Dogecoin. This helped Dogecoin to gain more face-value and sales.

Dogecoin is continuously in the news for hitting new record values. The Tweet by Elon Musk, “Who let the Doge Out,” led to the cryptocurrency’s highest price. This was the second time he tweeted about it. The first time rose significantly boosted the growth of cryptocurrencies.

Over 128 billion Dogecoin units are in circulation, and it is expected to grow more. Musk’s tweets have made a vast difference; investors are showing their interest in the currency.

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Elon Musk and cryptocurrencies- an intertwined tale

Elon Musk, the man of the hour, made headlines for tweeting about how Bitcoin is a good thing. He even added #Bitcoin on his Twitter bio and supported cryptocurrencies. Each time he tweets, there is a surge in cryptocurrencies’ price.

As he moved from Bitcoin to Dogecoin, the currency garnered his support with the Tweet, “Dogecoin is the people’s crypto.” There was an immediate 50% growth, and it made its record growth of crossing 8 cents, which was a big deal.

Musk did it again. He even tweeted a magazine cover of Dogue and wrote on it – ‘Dogecoin is people’s crypto.’ He bought some Dogecoins for his son, X AE A-Xii. This grabbed headlines, and Dogecoin saw an immediate surge.

The Origin story of Dogecoin

Let’s date back to December 2013, when Dogecoin was introduced as a joke. At that time, Bitcoin, Ethereum, and Litecoin were the popular cryptocurrencies compared to Dogecoin.

Dogecoin was developed by IBM engineer Billy Markus and Adobe engineer Jackson Palmer. What is amusing that they did not go for a fancy logo for the currency; instead, they chose the dog meme for their branding.

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How does Dogecoin work?

The cryptocurrency can be transferred between parties online and acts as a token. People can exchange their government-issued money such as the dollar or pound for it. It has price fluctuations and is not regulated by the government.

Many people invest in it because it is similar to stocks, and they bet on it to see when the value will fluctuate. Dogecoin did not become as successful as others. But it developed a community of people who were interested in it.

The currency made a massive leap in its value in just 72 hours. The 300% jump is iconic- it went from $0.00026 to $0.00095. Dogecoin uses a password-based script technology which makes it different from others.

Media attention on Dogecoin

Cryptocurrencies have taken over the digital world only recently. They are a form of money that can handle finances without the bank, and it sounds a lot less tedious. Virtual money is higher in value, and it fluctuates continuously.

We are all aware of Bitcoin, but Dogecoin rose to fame because of the GameStop Reddit thread. The founders are puzzled about how they have become the town’s talk; the sudden rise to fame is surprising.

Reddit was the main driver for Dogecoin’s fame, the subreddit thread ‘WallStreetBets’ went viral, and every crypto enthusiast knew about it like lightning speed. People were sending Dogecoin to each other, and it used to cost less back then. They have a better advantage compared to other cryptocurrencies- there is an unlimited supply of Dogecoin.

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Rapidly growing base

The Dogecoin community has catapulted today with more and more people joining it like a cult. It was founded based on Jackson Palmer’s joke, and he contacted Billy Markus to make this into a reality. They aimed to make it approachable so consumers can find it relatable.

According to CoinMarketCap, Dogecoin is currently valued at $10 billion, which is Rs. 72,901 crores at the moment. Now, it is being sold for Rs. 5.21 ($0.071), a much lesser price than other cryptocurrencies such as Bitcoin and Ethereum.

Are you curious about buying it?

Any cryptocurrency wallet or online platform can help you purchase it. You can access a Dogecoin wallet through a smartphone or desktop, and people in India have options such as BuyUcoin, Bitbns, or Zebpay to purchase.

You will require a quick KYC process and need to provide the necessary details such as name and phone number, and you will be good to go.

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