Elon Musk has been a driving force for significant global investments. Therefore, the flood of interest after he tweeted about Dogecoin is not surprising. While his tweet wasn’t related to digital currencies, the caption ‘dogs roc’ followed by his sentiments that Doge has the best coin ramped up support for the coin and increased investor interest.
Beyond a Joke
Dogecoin came to existence as a satirical commentary on Altcoin’s growth. It is based on a popular meme in 2013 that featured a Shiba Inu dog image with multi-coloured words in broken English. The creators of Dogecoin, Jackson Palmer and Billy Markus, adopted the architecture of Litecoin. While the coin began as a joke, it gained momentum from Elon Musk endorsement. Its low price, abundant supply and faster blockchain compared to other crypto have also boosted popularity. Unfortunately, unlike Bitcoin, which is limited and can act as a store value, Dogecoin has an unlimited supply and miners produce 10,000 new coins every minute. Therefore, it is subject to inflation.
After Tesla CEO’s statement of support, many celebrities endorsed Dogecoin, with many exchanges launching it on their platforms. Despite its shortcoming, Dogecoin offers unique properties and uses for its investors. It is also the future of crypto since many people are buying it due to its low price. Hence, many companies are likely to adopt it for business transactions. Besides, in today’s digitised world, the demand for digital currencies is set to grow and support industry leaders, and significant investors can skyrocket its growth.
Apart from Elon Musk’s initial tweet and support for Dogecoin, he has shown a consistent liking for crypto, with subsequent tweets showing that it is his favourite cryptocurrency. Every time he comments about the crypto, its prices grow significantly, and many people have labelled him Dogecoin’s Twitter CEO.
