Dogecoin is a cryptocurrency that started as an online joke and now it’s worth Is more than $65B.
Now, it has grown to become the fifth most valuable cryptocurrency in the world. It went to the rocket ride to the moon and back over the weekend after Elon Musk made fun of it on Saturday Night Live.
What is Dogecoin?
Dogecoin is a cryptocurrency just like Bitcoin. It was created in 2013 by a pair of software developers who worked at Adobe and IBM respectively.
So, you must be wondering what is a cryptocurrency. Cryptocurrencies are a type of digital money that can be used to pay for things in the online world. These are backed by an encrypted digital ledger of transactions, known as a blockchain.
How it all started?
It all started with an internet meme whose subject was Shiba Inu Dog. This led to the trading of dogecoin for fractions of a penny.
In early 2014, when the cryptocurrency was first changed it valued at $0.001540753 US. And now the same currency is worth 50 cents US. There is an increase of more than 32000 per cent.
If compared to Bitcoin, it is neither so secure, nor there is a cap on the number of dogecoins that can exist.
What does it have to do with Elon Musk?
There is no such relation between them. But Musk being a big fan of cryptocurrencies also happens to be the worlds richest man. So, he participated in all doge related jokes.
In April 2019, he mentioned it as “my fav cryptocurrency.”
What happened this weekend?
While hosting NBC’s comedy show Saturday Night Live, Musk talked about cryptocurrencies.
After this, it was seen that the price of the cryptocurrency rose to a high of about 73 cents US on Thursday.
Afterwards, in one SNL sketch, Musk appeared as a fictional cryptocurrency expert. His character admitted that the entire thing is a “hustle”.
He also said that dogecoin is “the future of currency” and “an unstoppable financial vehicle that’s going to take over the world”.
As soon as the sketch aired the currency got sold off as low as about 40 cents US per doge.
Why is doge ‘going to the moon’ again?
Doge was just a joke taken seriously by Musk when he tweeted about his space exploration company’s next mission.
“SpaceX launching satellite Doge-1 to the moon next year,” Musk tweeted without elaborating.
It was said that the company would pay for the mission in dogecoin.
“This mission will demonstrate the application of cryptocurrency beyond Earth orbit and set the foundation for interplanetary commerce,” SpaceX’s vice-president Tom Ochinero. “We’re excited to launch Doge-1 to the moon!”
Now what?
The back-and-forth trading of dogecoin has pushed the total value of the cryptocurrency up above $65 billion US, making it the fifth most valuable cryptocurrency in the world.
Its worth is even more than the Canadian telecom company Telus, grocery chain Loblaws and retail chain Canadian Tire’s worth joined together.
While it is also said that Elon Musk’s popularity may be responsible for the rapid growth in doge’s popularity.
