📝 What is Dogecoin? 📝
It was founded by two engineers called Billy Markus and Jackson Palmer. Markus worked at IBM and Palmer at Adobe So, Dogecoin was the self depricating example of a clone coin trying to be the “next Bitcoin” and on the 6th of December 2013, the first block was mined Dogecoin is based off of a proof of work cryptocurrency called ‘luckycoin’. This was actually a fork of Litecoin which is why Dogecoin can be merge mined with Litecoin Block rewards could be anywhere from 1 DOGE per block all the way up to 1 million DOGE per block. I should also point out that there was no premine The developers then decided that they would remove the randomness component altogether and the block reward was fixed at 10,000 DOGE per block. Since a Dogecoin block is mined every minute, this meant a supply growth of 5.2 billion DOGE When it comes to network effeciency, Dogecoin can handle around 30 transactions per second which implies a transaction time of about 5 to 10 minutes. The average transaction fee is about 1 cent
📈 Why Dogecoin Pumps 📈
– Meme Culture – Social Media – Elon Musk – Robinhood We live in an age of memes. It therefore makes sense that a Shiba inu meme like Dogecoin would take off so well. It’s instantly relatable and easy to remember As we know, social media is able to amplify memes and make them go viral. Memes feed on themselves and supercharge that engagement. This is especially the case with TikTok where it has been trending the most You also have the impact of Elon Musk and all of his pro Dogecoin tweets. Elon has been riding the Dogecoin meme like nobody’s business. Indeed, you can almost perfectly track the price pumps in Doge to his tweets about it Then you have Robinhood which means that it is a lot easier for these newbies to invest in DOGE through a simple trading interface
🤔 Why They Invest 🤔
There are three types of Dogecoin investor. You have those that are investing purely because they are having fund and enjoy the memes. They know the risks and are more than happy to take part in the pumps / dumps. Then you have those that are merely investing because they really think that it could be the next world currency. They follow every one of Elon’s tweets and are not taking adequate risk management steps. These appear to be the most dominant When these investors take out these risks they push up the price of DOGE and this creates a feedback loop. People think that the price performance is indicative of a valuable crypto.
🤔 Implications For Crypto 🤔
When people are burned, there will be a lot of inquiries. These will come from regulators and politicians who will want to target crypto in general for the failings of DOGE This was raised by Charles Hoskinson in a recent video of his where he took issue with the fact that so many noobs were piling into DOGE. There will be implications
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss. The speaker does not guarantee any particular outcome.