DOGE dates back to 2014, making it even older than Ethereum, which launched in 2015. But unlike most cryptocurrencies, its team never had high hopes of it becoming the next big currency or changing the world. The crypto protocol was made by copying and pasting the source code behind Bitcoin. Markus claims it took him just three hours to launch Dogecoin and that he did so for a joke. Even Markus sold all his holdings in 2015; he must be kicking himself now.
When evaluating most cryptocurrencies and digital tokens, I’d take a deep dive into the infrastructure and technology behind the protocol, but that’s not applicable for Dogecoin given its lack of unique features. Since it’s based on bitcoin, in theory, DOGE would be classed as an alternative currency. Plus, Elon Musk recently started accepting Dogecoin as a payment method for Tesla merch, which seems like the use case he foresees.
Despite being around since 2014, Dogecoin went pretty much unnoticed for the first six years of its existence. When Dogecoin launched, its price was $0.0002, which didn’t change significantly until 2021. In February 2021, the coin enjoyed what at the time seemed like a big jump up to $0.079.
Representing a return of 334,900%. Why, you ask? The entire crypto market was enjoying a boom during this period (like NFTs are seeing now), and many cryptocurrencies benefited from it, so this was undoubtedly a factor.
We finally come to the million-dollar question: should you give the dogecoin project your money? Since Dogecoin was only created as a joke and has swung about wildly in price, it’s probably not something at which you want to throw your inheritance. Suppose you’re looking for a surefire way to grow your investments. In that case, other cryptocurrencies arguably have more inherent value and should therefore be less risky,
If you feel an illogical pull toward Dogecoin that you can’t shake, you’re not the only one. Some might say it’s just a joke. Still, DOGE gained traction by taking inspiration from a meme and using it to give a middle finger to the financial system and cryptocurrencies that take themselves too seriously
The love affair between Dogecoin and Elon Musk isn’t over quite yet. On January 14, the entrepreneur’s company Tesla started accepting Dogecoin as a payment method to buy its merchandise, with a range that included fashion staples like a commemorative belt shaped like a Tesla factory.
The energy inefficiency problem of the blockchain world has been heavily publicized over the last year or so. Protocols like Bitcoin can only function because of mining, requiring individuals to solve cryptographic puzzles using increasingly powerful computers. However, research has found that Dogecoin is more energy-efficient than most big-name cryptos. While bitcoin consumes 707-kilowatt hours per transaction, Dogecoin consumes just 0.12
Whether this tour around Dodgeville has inspired your first steps in crypto investing, or left you more puzzled than ever about why it ever gained success in the first place, hopefully, you’ve learned something today. Whatever you ultimately decide, we can all agree that Dogecoin’s rise is nothing short of fascinating. It’s probably best if you don’t bet your entire net worth on Dogecoin, though.
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