Dogecoin, the cryptocurrency that has had a meteoric rise the past year, was never intended to be such a massive crypto success project. Dogecoin was originally created as a meme to make fun of Bitcoin back in late 2013. It was started by software engineers Billy Marcus and Jackson Palmer.
So, what even is Dogecoin? Dogecoin runs on blockchain technology and can be used as a medium of exchange. Dogecoin is actually quite similar to the structural build of Litecoin. This is as far as the coin's uses go, however. The only goal is to spend it like currency.
Dogecoin is up over 5,000% since 2020, so why aren't I a fan?
There is no limit as to how many Dogecoins can exist. New Dogecoins are minted and released into the market constantly, so if new money flowing into Dogecoin does not continually outpace new supply, the long term price of Dogecoin will ultimately suffer. Additionally, Dogecoin is purely fueled by influencers and celebrities. Dogecoin began its insane rally because of the WallStreetBets on Reddit. Anything that is purely fueled by hype will always suffer once that hype dies down. So, as far as a long term outlook is concerned for Dogecoin, I am personally not a fan.
I will say, the one fantastic thing about Dogecoin is it is helping cryptocurrencies in generally gain traction with the general public and is helping blockchain go mainstream. This has potential ramifications that are increasingly significant as the market grows. And Dogecoin is no joke. The coin is currently almost at a valuation of $50 billion USD. This is more than Twitter, and even more than other projects such as Chainlink.
Full disclosure on a personal note, it was Dogecoin that originally got me looking into cryptocurrencies back in 2018 - 2019. I longed Dogecoin when it was valued at around 0.002 (yes, not even close to a penny) and I made probably the single biggest return on one trade I will ever experience in my life. The coin has made people rich, and it will continue to so long as the hype remains intact and massive influencers like Elon Musk and Slim Jim keep tweeting about it.
Just be weary... because when the noise stops, so do the gains.