What is Dogecoin?
Dogecoin started as a joke by two software developers, Jackson Palmer and Billy Markus, who, in 2013, wanted to make a ‘fun’ alternative to bitcoin. The coin was inspired by a popular meme featuring a Shiba Inu dog, his baffled expression and internal monologue in broken English.
The coin is powered by litecoin and is considered an inflationary coin, because unlike bitcoin there is no finite number of coins that can be mined. Also, Dogecoin’s 1-minute block intervals make it faster than many other blockchains. Originally, the use of the funny meme was designed to satirise the rise of altcoins, but in time, the joke actually led to some practicality.
What can you do with Dogecoin?
Dogecoin is actually very similar to bitcoin, as it can be used to send value internationally to anyone. And in recent years, the coin’s network has increased and more vendors are accepting the unique token. In the US, for example, the coin can be used for online and in-store purchases via Bitpay, a cryptocurrency wallet. However, dogecoin is not as popular in Australia and its uses are mostly limited to trading and sending it.
→ Related article: How to buy bitcoin in Australia
Elon Musk and Dogecoin
Dogecoin’s link to the popular meme has seen it gain a large following. Recently the influence of Elon Musk, the CEO of Tesla and SpaceX, has tended to send investors flocking to invest in the cryptocurrency. The latest price surge was likely linked to the billionaire entrepreneur, who dropped a cryptic tweet on April 28 promoting his upcoming appearance on Saturday Night Live (SNL) on May 8 while referring to himself as the ‘dogefather’. Ahead of his appearance, Musk also tweeted, “Cryptocurrency is promising, but please invest with caution!”
— Bitcoin News (@BTCTN) May 5, 2021
Some analysts suggested that investors were jumping on to the coin before the techno-king’s appearing on SNL, which they expected could send the coin’s price to spike even higher. However, during a skit on SNL Elon Musk referred to the coin as a “hustle” and the coin’s value fell by 35%. The day after his appearance on SNL, the tech billionaire announced his plans for SpaceX to accept dogecoin as payment and shared this tweet soon after:
SpaceX launching satellite Doge-1 to the moon next year
– Mission paid for in Doge
– 1st crypto in space
– 1st meme in space
To the mooooonnn!!https://t.co/xXfjGZVeUW
— Elon Musk (@elonmusk) May 9, 2021
What is Dogecoin currently worth?
At the time of writing, dogecoin is worth AU$0.55. Year-to-date, the coin has risen by 9549.12%. While that is a crazy amount, it is worth bearing in mind that the coin is extremely volatile and past performance is not an indication of future performance.
How can you buy Dogecoin in Australia?
If you are interested in investing in Dogecoin, there are a number of cryptocurrency exchanges that buy, sell and trade it.
Australian Cryptocurrency Exchanges June 2021
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→ Related article: 8 things to consider when choosing a cryptocurrency exchange in Australia
Cover image source: Jiri Hera (Shutterstock.com)