Familiar with the silly Shiba Inu meme that has become one of the internet’s most popular meme formats? Known as ‘Doge’, it is known to many as silly humour that is essentially an image of a Shiba Inu surrounded by incoherent text, in a font that is any designer’s worst nightmare – comic sans. And although doge is a joke, the Dogecoin has somehow become a real cryptocurrency that has real value.
How did it start?
Dogecoin was actually founded in 2013, as a joke by programmer Billy Markus as a response to the success of bitcoin and with an aim to reach a wider audience. It quickly gained traction, and demand, which resulted in Jackson Palmer, part of the Adobe Systems Sydney marketing department to purchase the domain dogecoin.com. This had a ridiculous splash screen, featuring only the coin’s doge logo surrounded by Comic Sans text. After seeing the site, Markus joined forces with Palmer in order to make the currency a reality, which was based on Luckycoin.
Having been created on December 6, 2013 it dramatically increased in value, jumping nearly 300% in just 72 hours and being valued at US$0.00095 (it was previously US$0.00026) by December 19, 2013. This set the foundation of Dogecoin as we know it today.
Why is Dogecoin relevant today?
The beginning of this year saw a newfound interest in Dogecoin, with a sudden surge in its value in December 2017. At the beginning of December, Dogecoin was valued at US$0.002, yet on Christmas Day it went over the $1 billion milestones. Even though this cryptocurrency hadn’t been updated in two years, this value only increased and by early January, Dogecoin soared over the $2 billion mark, moving up 800% from the start of December. On January 7, 2018, Dogecoin was trading at $0.018.
One of the founders of Dogecoin, Jackson Palmer has stated that this resurgence of interest is a “concerning indicator of wide-spread frothiness in the cryptocurrency market.” and even as this may be, Dogecoin has real value on today’s market.
Can Dogecoin be called a joke currency?
To put it simply, five years ago this answer would have been a resounding yes. But now, it’s a definite no. Dogecoin was started as a joke cryptocurrency but has far surpassed the joke and has now become a successful cryptocurrency that has a real impact on the market.
The sudden spike in the market capitalisation of Dogecoin was a cause for alarm within Central Banks – especially with regard to money laundering and tax evasion (something which has surrounded cryptocurrencies since Bitcoin’s inception).
And even though many experts believe that its sudden resurgence is due to people jumping on the gravy train and consequently momentum investing, Dogecoin is currently trading at US$0.002798. This is far more than what many other cryptocurrencies are currently trading. Because of this, for now, Dogecoin should be taken seriously as a cryptocurrency. However, it runs a high risk of collapsing and losing value if the momentum investing stops.
Read our related blog on Bitcoin.