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Technology What is Dogecoin? How a joke became hotter than bitcoin

18:27  04 may  2021
18:27  04 may  2021 Source:   cnn.com

Everything Elon Musk Has Said About Dogecoin

  Everything Elon Musk Has Said About Dogecoin "Doge Barking at the moon" is the latest in the billionaire CEO's viral posts about the cryptocurrency.Just after midnight on April 15, Musk posted a tweet that reads, "Doge Barking at the moon." He included a photo in the tweet of a painting by Spanish artist Joan Miró titled "Dog Barking at the Moon.

Dogecoin is the hottest, quirkiest cryptocurrency on the planet.

DOGE COIN © Getty Images DOGE COIN

The total value of the dogecoins in circulation is nearly $50 billion — not bad for a digital currency that started as a joke.

It is the No. 5 most-valuable cryptocurrency on the market, according to CoinMarketCap, having increased more than 6,000% this year.

The price of a dogecoin doubled again Friday after Tesla CEO Elon Musk tweeted about it for the umpteenth time (more on that in a bit). Demand for Dogecoin spiked so much in April, it briefly broke Robinhood's cryptocurrency trading system.

a car driving on a race track: A 16-year-old, with the help of Reddit, got the No. 98 sponsored by Dogecoin for a race at the famous Talledega Superspeedway. © Reddit A 16-year-old, with the help of Reddit, got the No. 98 sponsored by Dogecoin for a race at the famous Talledega Superspeedway.

What is dogecoin?

Like all cryptocurrencies, dogecoin is a digital currency that can be bought and sold like an investment and spent like money.

Dogecoin Creator Billy Markus Wants Elon Musk to 'Literally' Send His Crypto to the Moon

  Dogecoin Creator Billy Markus Wants Elon Musk to 'Literally' Send His Crypto to the Moon Markus, the currency's co-founder, told Newsweek he thought it would be "really cool" if Musk could somehow blast some of the crypto into space."I think having an ally like Elon Musk is pretty incredible, honestly," Billy Markus, the currency's co-founder, told Newsweek. "I think it would be really cool if he does literally send dogecoin to the moon on one of his rockets.

Although each crypto is unique, it shares some similarities with its better-known peers — its code is based off the script for litecoin, for example. But it has a couple key differences.

Unlike bitcoin, which has set 21 million as the finite amount of the digital currency, dogecoin has 129 billion coins in circulatIon and will continue to make new blocks of coins available to mine each year. That's part of the reason one dogecoin is currently valued at about three dimes and a bitcoin is worth about $62,000.

Although cryptos are gaining more acceptance as a currency for purchasing goods, dogecoin doesn't have much mainstream real-world use. It has a few niche markets, including using dogecoin to tip online artists.

And its main differentiator — its active online community — is what makes the odd-ball currency so fun. The group, which is active on Reddit, has raised money (in dogecoin, of course) for charitable causes, and in 2014 it successfully crowdfunded a sponsorship to get Nascar driver Josh Wise to advertise dogecoin on his car.

Dogecoin Tanks Amid Elon Musk 'SNL' Appearance, Prompting Wave of Ridicule

  Dogecoin Tanks Amid Elon Musk 'SNL' Appearance, Prompting Wave of Ridicule At around 12:30 a.m. ET, amid Musk's SNL performance, the price of dogecoin fell to 0.5115—a 24 percent drop in value.At around 11:30 p.m. ET on Saturday night, the price of dogecoin sat at 0.6765 USD, according to a live tracker maintained by Yahoo Finance.

"Dogecoin is not so much an alternative deflationary numismatic instrument as it is an inflationary leisured exploration of community-building around a cryptoasset," wrote Usman Chohan, economist at the University of New South Wales Business School, in a paper updated in February about the digital currency.

How did it start?

Dogecoin was created December 6, 2013, by a pair of software engineers as a joke.

Billy Markus, an IBM programmer from Portland, Oregon, set to differentiate his crypto from bitcoin, which was steeped in mystery with an anonymous creator and at the time attracted a small, niche group of miners. Markus wanted his cryptocurrency to be open to the masses, according to Chohan.

Markus looked for help making his weird dream a reality and found Jackson Palmer, who worked for Adobe. Palmer purchased the domain dogecoin.com — a nod to the "doge" meme that was all over the internet at the time.

Dogecoin Fans Mark 'Doge Day' on 4/20 by Trying to Spike Crypto's Price

  Dogecoin Fans Mark 'Doge Day' on 4/20 by Trying to Spike Crypto's Price The event is trending on Twitter on Tuesday as fans of the popular joke cryptocurrency token rally with memes.A hashtag of the same name is currently the second-highest trending term on Twitter as the community rallies online. The Dogecoin subReddit is also active with posts.

The website nods to its joke origins at the very top: Its Shiba Inu mascot is the first image on the page, mimicking the meme that inspired it, which features the same dog surrounded by a bunch of Comic Sans text in broken English.

On dogecoin.com, its mascot is captioned: "Dogecoin is an open source peer-to-peer digital currency, favored by Shiba Inus worldwide."

Why is is so popular, all the sudden?

Dogecoin is no longer a joke. Its popularity has soared — astronomically, this year — buoyed in part by the mainstream adoption of bitcoin and other cryptocurrencies.

But Elon Musk is the loudest and most prominent supporter of dogecoin. One of his bizarre tweets to his 50 million followers can send the crypto surging. That's what happened in April, when Musk tweeted "Doge Barking at the moon" and shared a photo of a painting by Spanish artist Joan Miró, which is titled "Dog Barking at the Moon."

Dogecoin has also enjoyed something of a cult status on internet message board Reddit, where a popular group — not unlike the WallStreetBets group behind GameStop's rally — decided earlier this year to propel its value "to the moon." Dogecoin soared over 600% in the wake of that push.

Whether or not its a smart investment remains an active question. The more-actively traded and more-widely accepted bitcoin is subject to extreme volatility, so dogecoin, too, could crumble without warning. But its rise this year has been stunning.

Not benefiting from the coin's soaring growth is Markus, who sold all his dogecoin when he was laid off in 2015. He used it to buy a Honda Civic.

MUSK Toten on Twitter: Teslas soon payable with Dogecoin? .
Once again, Tesla boss Elon Musk has dedicated itself to Twitter's current favorite topic: the fun crypto diet Dogecoin. • MUSK is reinforced again to the Dogecoin • New Twitter survey with unclear target • Teslas soon with Dogecoin affordable? Who buys an electric car from Tesla , can either place Fiat money on the table or pay its new vehicle with Bitcoin . This announced Tesla boss Elon Musk a few weeks ago on Twitter .

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