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What is Dogecoin, the Cryptocurrency Started as a Joke?

Apart from Bitcoin, one of the cryptocurrencies that stole the attention is Dogecoin. This is because Tesla founder and CEO Elon Musk gave his support to this cryptocurrency. He has the desire to make cryptocurrency the internet currency.

Quoting Coinmarketcap, Friday (16/4/2021) the price of Dogecoin reached US $ 0.2354, an increase of 79.02% compared to the same period the day before.

This also makes Elon Musk happy, and he wrote in his twitter account. “Doge barked to the moon,” he wrote.

What is Dogecoin?

So what is Dogecoin? This is a crypto asset created by programmers Jackson Palmer and Billy Markus in 2013 and as a luckycoin fork that is no longer functioning. This also makes Dogecoin a litecoin (LTC) fork, quoted by Yahoo Finance.

For information, the Cryptocurrency fork is a tweak in the blockchain protocol source code to produce a protocol or coin. In 2014, Dogecoin also supported mixed mining with litecoin.

But it turns out that Dogecoin was just made out of a joke. This was revealed when Palmer left the company in 2015. He said his goal was just a joke and did not want to make money from his product. Palmer also said he saw the dangers of a revival of Dogecoin.

Why is Dogecoin just a joke at first?

“I think this reveals a lot about the cryptocurrency space. In general, a digital currency with a dog image on it has not had a software update in more than two years instead has a market capitalization of over US $ 1 billion,” he said.

Not getting there, three years after Palmer left the value of Dogecoin the price had increased six times as much. This occurs with no practical function behind it and there is no limit to how much Dogecoin can be mined.

Back to Elon Musk’s tweet effect. Currently, in a matter of weeks, Dogecoin has gained more than 300%. This means that if you have 1 million in cash, it will multiply to 3 million.

Dogecoin Price Up 300% a Week & the Big Threat Behind It

Dogecoin was originally presented as a joke. Now in the 10 largest crypto assets with a market capitalization of US $ 34 billion.

This cryptocurrency is based on the “Doge” meme, which became popular in late 2013. The meme depicts a Shiba Inu dog alongside nonsense phrases in the text of the colorful Comic Sans font.

Shiba Inu Dog as Dogecoin symbol

Created in 2013 by software engineers Billy Markus and Jackson Palmer, Dogecoin is intended to be used as a faster but “fun” alternative to Bitcoin. Since then, the online community has grown rapidly.

And now, Dogecoin has caught the eye of many because of its $ 34 billion market cap, according to crypto market site CoinGecko. A market capitalization of US $ 19.9 billion increased in the last 24 hours.

value that is increasing rapidly

The cryptocurrency hit an all-time high of nearly 28 US cents this morning, more than double its price the day before.

The increase in Dogecoin prices was boosted by the enthusiasm of the Raddit group called SatoshiStreetBets. This group has aim to increase the price of cryptocurrencies. In the last seven days the price of Dogecoin has increased by 300%.

A Reddit user also posted a photo of their Dogecoin ownership on the Robinhood investment app. “Hi friends, I just became a millionaire from Dogecoin,” said the user, showing a balance of US $ 1.08 million in his account, as quoted by CNBC International, Friday (16/4/2021).

 

Insolvency threat from Dogecoin

The skyrocketing price of Dogecoin has caused fears of a potential bubbles in the cryptocurrency market. Some investors already see Bitcoin as a speculative bubble, the world’s most popular digital coin has been multiplying since the beginning of 2021.

Bubble is meant when the price goes up high then drops suddenly which causes most of the asset holders to lose heavily and go bankrupt because of the selling action and there is no longer any interest in buying or collecting these assets.

Dogecoin Balloons Going to Pop?

“The Dogecoin revival is a classic example of a bigger stupid theory at play,” David Kimberley, an analyst at UK investment app Freetrade, told CNBC.

“People buy cryptocurrency, not because they think it has any significant value. It is because they hope other people will buy it and then the price goes up and after that they can sell and make money quickly.”

“When everyone else does this, the bubbles eventually have to burst and you will be left if you don’t make it out in time. And it’s almost impossible to say when that will happen.”

“This is a dual case in the crypto market where a small group of players often holds the bulk of the coins in circulation. That means it only takes one person to sell all of their holdings for the entire market to collapse.”

How long Dogecoin will last hold up? Because at the same time, April 16th, 2021, Turkey banned Bitcoin and Crypto Money

 

Official! Turkey Bans Bitcoin & Cryptocurrencies

The Turkish Central Bank prohibits the use of cryptocurrencies such as Bitcoin and Ethereum as a means of payment for buying goods and services. The reason is, cryptocurrency has an irreparable impact as well as risks involved in transactions.

This ban caused the value of Bitcoin to drop nearly 3% to US $ 61,940 at 07:54 GMT as mentioned by Reuters, Friday (16/4/2021).

Turkey’s policy on Cryptocurrencies

In the regulations issued, Turkey’s central bank stated that crypto currencies and digital assets based on distributed ledger technology cannot be used. Either directly or indirectly, as a means of payment.

According to the central bank, crypto assets do not comply with any regulations as well as supervisory mechanisms or regulatory authorities.

“Payment service providers will not be able to develop business models using crypto assets either directly or indirectly in payment services and electronic money issuance,” said the central bank.

Warning from Turkey’s Central Bank

The authority also said it would not provide any services. In addition, Turkey’s central bank warned that the use of payments could lead to losses.

“Its use in payments can cause irreversible losses in transactions, and includes elements that can undermine confidence in the instruments currently used in payments,” the central bank said.

The central bank’s decision was criticized by the leader of the main opposition, Kemal Kilicdaroglu. He said what he did was ‘midnight bullying’ or midnight bullying.

This also refers to what President Erdogan did last month. Namely the midnight decision to fire the central bank governor.

“It looks like they are doing foolishness at night,” wrote Kemal in his tweet upload.

Cryptocurrency Trading Volume in Turkey

Crypto asset transaction volume in Turkey surpassed US $ 27 billion from early February 2021 to March 24, 2021, according to Chainalysis. This is because a number of investors are taking part in the global crypto asset price rally, as well as to hedge amid the falling lira price against the US dollar and inflation has already touched 16.19%, three times more than the target of 5%.

But, how much influence does Turkey have on cryptocurrency? Because now it is almost certain that in 2021, Mastercard will enter the realm of crypto money, as information announced in February 2021.

Mastercard to Open Crypto Money Making Network

Mastercard plans to provide support services for cryptocurrency on its network this year. This was announced on Wednesday (10/2). Reported by Reuters, the plan follows the steps of a number of large companies that have expressed similar support.

The global credit card network giant’s announcement came days after the Elon Musk company Tesla Inc disclosed that it bought US $ 1.5 billion worth of bitcoin and will accept purchases using cryptocurrency in the near future.

Previously, similar plans were taken by asset management company BlackRock Inc and payment companies such as Square and PayPal.

Currently, Mastercard has offered a card service that allows users to use crypto money, even though it hasn’t been through its network yet.

“Doing this will create many opportunities for consumers and merchants, enabling them to transact in new payment instruments. This change will allow merchants to reach new customers who are currently enlivening digital assets,” explained Mastercard.

However, Mastercard emphasizes that not all cryptocurrencies will be supported by the network. The company also added that many of the hundreds of digital assets in circulation need to be tightened with regulations on their use. Unfortunately, the company did not specify the types of cryptocurrencies they would receive their support for.

As a side note, many cryptocurrencies have a hard time gaining the trust of most investors and the public because of their speculative nature and potential money laundering.

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