Scam or joke? What is Dogcoin?

Categories: Cryptocurrencies, NewsBy Published On: August 2, 20210 Comments

This Thursday is a historic day for dogecoin as it is finally available on Coinbase, the leading exchange platform for virtual currencies. A consecration for a crypto-currency launched as a joke, a parody of bitcoin.

In 2013, bitcoin was then a global phenomenon and a controversial topic in the financial community. That’s when a duo of American engineers developed Dogecoin to poke fun at the bitcoin mania. Some people pronounce Dogcoin, “dog” as “dog” since this virtual currency with the effigy of a dog head of the Japanese breed Shiba Inu, its image was then all the rage on social networks.

This crypto has a mode of creation at the opposite of its ancestor: while the number of bitcoin in circulation is limited to 21 billion maximum, that of the dogecoin can on the other hand grow without end. 100 billion units were issued in 2013 and since then the mass increases by 5% per year. This is supposed to limit inflation. For years, its price remained at the daisy chain.

But Elon Musk’s interest will change its fate

For better or for worse. In April, during the famous TV show Saturday Night Live, the inventor of the Tesla promoted it. In the wake of this, its value soared: while it was not even worth a penny at the beginning of the year, it jumped to 74 cents, an increase of 15,000% over one year. And then Elon Musk mentions dogecoin on the moon, triggering a new wave of purchases in the dogecoin community. But the whimsical billionaire suddenly gets excited and laughingly admits that he thinks dogecoin is a scam, causing its value to plummet by 30%.

Scam or joke? What is this digital currency really for?

If it’s a joke, not everyone is laughing, especially those who are ruining themselves by placing their savings on this medium. One of its creators, Billie Markus, says he himself has no more in his wallet. He recommends his users to speculate only on the condition that they use the money they don’t need to live. He also suggests to his followers on Twitter to use it for a good cause. Some charities are now accepting donations in dogecoins. Its main function today is speculation and animation of a community that is learning this new monetary device.

Its introduction on Coinbase makes it enter the big league

It could well explode with the 56 million registered users on this platform. For the moment, exchanges are reserved for the platform’s professional clients. The success will depend on the amount of money they put on the table. There are currently about 3,000 crytpo-currencies in circulation. And dogecoin, which was originally intended to be a joke, has entered the top 5 of the most quoted. Its success demonstrates the absurdity of the urgent need to regulate these crypto-currencies as conventional assets. Because even if many experts are still skeptical about the validity of their existence, they have managed to impose themselves on the general public and to challenge the schemes of the big central banks, the only entities authorized until now to issue money.

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