There are a lot of cryptocurrencies thriving in the market today. Most of them were created with a purpose in mind. They were created to enhance processes or solve current problems. There are few cryptocurrencies that were created to power platforms and as payments on crypto trading platforms. These cryptocurrencies have shown growth as and when more people start using them. However, amongst these, there are a couple of cryptocurrencies that started as nothing but a joke and to mock other currencies. Dogecoin is an example of such a kind of cryptocurrency that has been very well-received by the world. This cryptocurrency was introduced at the time a particular meme was being circulated around the internet. The dog in this meme was used on the token created for this cryptocurrency.

How did Dogecoin become a part of the crypto market?

There are certain digital currencies that started getting used to making payments easier. However, just like the origin, the use of Dogecoin was a mockery of cryptocurrency. Ironically, the usage led to the value of this cryptocurrency rising. Once the exchange started on Reddit, it expanded and people sent each other this currency for fun. As more people traded, the value increased! Once the volume increased, the core group at Dogecoin realized they could have a real future and be one of the most valuable currencies in the world. They tweeted about appointing a CEO and caught the attention of tech giants. One, in particular, was very taken with this currency and promised to plant a physical token on the moon. There was really no stopping the popularity of Dogecoin after that. The Doge to INR value rose by 5000% in 2021 and it became the fifth most valuable cryptocurrency in the world.

How did Dogecoin contribute to its popularity?

Dogecoin developers were never serious about this crypto being used as a payment method. They gained popularity by doing some out-of-the-box publicity stunts. They sponsored the Jamaican bobsled team to the 2014 Olympics (a reference to the classic Disney movie “Cool Runnings” which was released in 1993). They also sponsored a NASCAR driver and financed more than $30,000 for clean water in Kenya. These acts got them the publicity they wanted and also the goodwill they did not expect.

What can you do? 

Working the same amount and getting paid while having lesser opportunities to spend the money is one of the ways people seem to be engaging themselves these days. With some amount to spare, you can try your hand at trading too. However, if you are looking for options to invest, then Dogecoin may not be the safest option. There are many cryptocurrencies that surpass Dogecoin in terms of application and potential. The real reason for the popularity of this cryptocurrency is the controversy and gossip around it. If this is just a passing fad, then there is no guarantee when it will fizzle out. There is no guarantee of what the value will be 5 years later. However, if you are considering day trading or making a quick profit based on the patterns seen previously, then you can go ahead and try it. It is advisable to invest the amount which you are okay with losing completely.

What has been the pattern of the rise and fall of Dogecoin? 

At the beginning of 2018, Dogecoin could be bought at 1 rupee. The dogecoin price stayed steady and below a rupee till the beginning of 2021 when it shot up to 4 rupees. After that, there was an exponential rise thanks to celebrities mentioning it in talk shows and on Twitter (whether it was seriously or jokingly). The highest value of Dogecoin was in May of 2021 when the price reached 50 rupees. Post that, the graph has been rocky and descending very slowly. There is a very good chance it does not pick up again. The end of 2021 was not that great compared to the rest of the year. Dogecoin closed in the year 2021 and began 2022 at 12 rupees. 2022 has not proven to be better for Dogecoin. The value is on the decline and in February 2022, it reached 10 rupees.

What can we expect in the future from Dogecoin?

Unless the developers decide to build on the blockchain and come up with solutions to more problems, this cryptocurrency is just a trend that is sure to pass. Dogecoin can be immediately used for payments and transfers. Another factor that renders the future unsteady is that the total number of tokens is unknown. This means no one knows when the last Dogecoin will be mined and what will be the cost of the Dogecoin at that time. The other factor which affects the future of Dogecoin is how many people are adopting the use of Dogecoin at the moment.

Cryptocurrency is an uncertain market and whether Dogecoin has a place in the future of this market remains to be seen.