{"id":163773,"date":"2021-02-23T10:09:40","date_gmt":"2021-02-23T15:09:40","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=163773"},"modified":"2021-02-23T10:29:17","modified_gmt":"2021-02-23T15:29:17","slug":"what-is-dogecoin-what-you-need-to-know-about-the-latest-viral-cryptocurrency","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/what-is-dogecoin-what-you-need-to-know-about-the-latest-viral-cryptocurrency\/","title":{"rendered":"What Is Dogecoin? What You Need To Know About The Latest Viral Cryptocurrency"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fwhat-is-dogecoin-what-you-need-to-know-about-the-latest-viral-cryptocurrency%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=163773&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/02\/GettyImages-1299388486-1200x800-1.jpg\" class=\"ff-og-image-inserted\" \/><\/div>\n<p class=\"p1\">Hot off the heels of the Reddit<em>\u2013<\/em>fueled GameStop stock surge comes a new investing craze by the name of \u201cDogecoin.\u201d This latest fad in cryptocurrency recently shot up several orders of magnitude, from trading at fractions of a cent to several cents per share, with a total valuation exceeding $10 billion. So far, it has risen over 1500% in price. As with the GameStop rally \u2014 entirely driven by publicity rather than any real, underlying value \u2014 Dogecoin\u2019s surge was driven by a bevy of internet memes, rocket emojis, and Elon Musk tweets.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">Earlier this February, Dogecoin\u2019s valuation began to rise, immediately jumping 30% in reaction to SpaceX and Tesla CEO Elon Musk and rapper Snoop Dog tweeting about the cryptocurrency.<\/p>\n<p class=\"p1\">Elon Musk first tweeted about the satirical currency on February 4<span class=\"s2\"><sup>th<\/sup><\/span>, writing \u201cDogecoin is the people\u2019s crypto.\u201d The billionaire tech CEO later shared a video promoting Dogecoin, in addition to a collection of memes.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"vi\" dir=\"ltr\">\u00d0 is for \u00d0ogecoin! Instructional video.<a href=\"https:\/\/t.co\/UEEocOfcTb\">https:\/\/t.co\/UEEocOfcTb<\/a><\/p>\n<p>\u2014 Elon Musk (@elonmusk) <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1358584801003884544?ref_src=twsrc%5Etfw\">February 8, 2021<\/a><\/p>\n<\/blockquote>\n<p class=\"p1\">Shortly after, rapper Snoop Dogg joined in, promoting Dogecoin on his own timeline<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"und\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/elonmusk?ref_src=twsrc%5Etfw\">@elonmusk<\/a> <a href=\"https:\/\/t.co\/KElwKghpei\">pic.twitter.com\/KElwKghpei<\/a><\/p>\n<p>\u2014 Snoop Dogg (@SnoopDogg) <a href=\"https:\/\/twitter.com\/SnoopDogg\/status\/1358141965930426368?ref_src=twsrc%5Etfw\">February 6, 2021<\/a><\/p>\n<\/blockquote>\n<p class=\"p1\"><strong><span class=\"s1\">A brief primer on cryptocurrencies:<\/span><\/strong><\/p>\n<p class=\"p1\">The most ubiquitous and widely known cryptocurrency today is Bitcoin. Conceived in 2009, Bitcoin, like all other cryptocurrencies, is a decentralized, digital currency; only existing electronically. Unlike the US Dollar, or any other Fiat currency, Bitcoin isn\u2019t bound to a central bank or government. This means that there is no governing body \u2014 like the Federal Reserve \u2014 keeping track of how many are already in circulation, deciding how many <em>should be<\/em> in circulation, or deciding to print (create) more Bitcoins.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">Bitcoins, unlike the myriad of files you have saved on your computer, can\u2019t be copied. A bitcoin isn\u2019t a binary string saved locally on your computer. It is an entry on a dynamically growing global ledger called Blockchain.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">The Blockchain ledger records every Bitcoin transaction that has <em>ever happened.<\/em> As of February 2021, the Bitcoin Blockchain has reached a whopping 330 GB. Because Blockchain is <em>decentralized<\/em> there isn\u2019t a single, universal ledger, but multiple ledgers; and they all keep track of the same information. Each Bitcoin transaction broadcasts to the network of ledgers information regarding the account numbers associated with the transaction and the number of bitcoins being exchanged.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">All of this is made possible thanks to <em>c<\/em><em>ryptography<\/em> \u2013 where cryptocurrency gets its namesake. When someone creates an account on the Bitcoin network, called a \u201cwallet,\u201d it is associated with a private and public key. This is the sort of encryption that governs nearly all security on the web.<\/p>\n<p class=\"p1\">Other cryptocurrencies, aside from Bitcoin, are variations on the same technology: blockchain. These are called \u201c<span class=\"s1\">altcoins<\/span>.\u201d Although the underlying technology is the same, their \u201crules\u201d vary slightly. For example, some altcoins can be \u201cmined\u201d (produced) at faster rates than Bitcoin. Some altcoins have higher circulation limitations. And for some altcoins, the hardware requirements to produce them are far laxer than the vastly expensive supercomputers needed for Bitcoin. Almost anyone can make their own altcoin. There are, therefore, an overwhelming number of different altcoins in circulation: Ethereum Tether, Litecoin \u2014 and you can see them all in <a href=\"https:\/\/help.coinbase.com\/en\/coinbase\/trading-and-funding\/cryptocurrency-trading-pairs\/supported-cryptocurrencies\"><span class=\"s4\">Coinbase<\/span><\/a>. While some do offer more appealing features and a lower price when compared to the ubiquitous Bitcoin, they can be <span class=\"s1\">highly<\/span> volatile and unpredictable.<\/p>\n<p class=\"p1\">This brings us to the latest headline-making altcoin: Dogecoin. Dogecoin was started as a joke, in 2013, via a sardonic tweet by a then-Adobe employee, Jackson Palmer. Poking fun at the deluge of altcoins flooding the cryptocurrency market, Palmer wryly remarked, \u201cInvesting in Dogecoin, pretty sure it\u2019s the next big thing.\u201d<\/p>\n<p class=\"p1\">The joke caught on and spread. Before long, Palmer was contacted by Billy Marcus, a software engineer from IBM. In collaboration, the pair launched Dogecoin in December of 2013 with a Shiba Inu as its mascot. Two weeks later, the value jumped 300%, buoyed by both viral press, and China\u2019s <a href=\"https:\/\/www.bbc.com\/news\/technology-25233224%23:~:text=China%2520has%2520banned%2520its%2520banks,as%2520a%2520currency%252C%2520it%2520said.\"><span class=\"s4\">hardline ban<\/span><\/a> on Bitcoin trading.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">Recollecting the ironic inception of his digital currency, Palmer explained in a Vice <a href=\"https:\/\/www.vice.com\/en\/article\/jp5x3d\/dogecoins-founders-believe-in-the-power-of-meme-currencies\"><span class=\"s4\">interview<\/span><\/a>, \u201cOne night after work, I sat down with a beer, I had too much time on my hands, and I bought Dogecoin.com. Then I Photoshopped the logo onto the coin and put it up there.\u201d<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">Despite its flippant origins, Dogecoin continued to steadily grow. In 2014, Dogecoin\u2019s trading volume surpassed all other digital currencies \u2014 even Bitcoin\u2019s. In 2018, Robinhood allowed trading of Dogecoin on its platform. A decision they later reneged on: in late January, amid an 800% surge in demand, Robinhood <a href=\"https:\/\/www.benzinga.com\/markets\/cryptocurrency\/21\/01\/19391840\/robinhood-shuts-off-instant-deposits-feature-for-cryptocurrency-trading?utm_campaign=partner_feed&#038;utm_source=yahooFinance&#038;utm_medium=partner_feed&#038;utm_content=site\"><span class=\"s4\">shut down<\/span><\/a> instant deposits for all cryptocurrency trading, while also <a href=\"https:\/\/www.benzinga.com\/news\/21\/01\/19405653\/robinhood-expands-trading-restrictions-to-50-stocks-including-gamestop-general-motors-starbucks-seve?utm_campaign=partner_feed&#038;utm_source=yahooFinance&#038;utm_medium=partner_feed&#038;utm_content=site\"><span class=\"s4\">restricting trades<\/span><\/a> of a slew of surging stocks, including GameStop.<\/p>\n<p class=\"p1\">Dogecoin was then thrust even further into the spotlight when Tesla CEO Elon Musk tweeted about the currency, sending its trading value soaring. Today, Dogecoin has a market cap of close to $10 billion \u2014 roughly the same market value as Dropbox and Pinterest.<\/p>\n<p class=\"p1\"><strong><span class=\"s1\">Does investing in Dogecoin make any sense? Does it really have any intrinsic value?<span class=\"Apple-converted-space\">\u00a0<\/span><\/span><\/strong><\/p>\n<p class=\"p1\">A crucial fact to consider about cryptocurrency, as mentioned earlier, is that different digital currencies are bound to different rules. Bitcoin, for example, is limited to exactly 21 million coins. As of today, 18.5 million Bitcoins have already been mined; it is <a href=\"https:\/\/investorplace.com\/2021\/02\/dogecoin-has-an-inflationary-supply-trait-making-it-ideal-as-a-cryptocurrency\/%23:~:text=The%2520rate%2520of%2520increase%2520in,than%25205%2520billion%2520per%2520year.\"><span class=\"s4\">expected<\/span><\/a> that by 2040, the available supply of Bitcoins will be exhausted, hence encouraging hoarding of the digital coin, driving up the price. Dogecoin, conversely, has no limit to the number of coins that can be mined, produced and circulated. There are currently over 128 billion Dogecoins in supply \u2014 and rising. Each year, the number of Dogecoins in circulation is <a href=\"https:\/\/investorplace.com\/2021\/02\/dogecoin-has-an-inflationary-supply-trait-making-it-ideal-as-a-cryptocurrency\/%23:~:text=The%2520rate%2520of%2520increase%2520in,than%25205%2520billion%2520per%2520year.\"><span class=\"s4\">expected to increase<\/span><\/a> by 5 billion per year \u2014 setting the annual inflation rate at around 4%.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">According to a recent <a href=\"https:\/\/www.wsj.com\/articles\/dogecoin-has-a-top-dog-worth-2-1-billion-11613559022\"><span class=\"s4\">report<\/span><\/a> in the Wall Street Journal, a single entity owns 28% of all Dogecoins currently in circulation. And as further revealed by <a href=\"https:\/\/markets.businessinsider.com\/currencies\/news\/dogecoin-biggest-holder-owns-28-of-the-cryptocurrency-2021-2-1030093749\"><span class=\"s4\">blockchain data<\/span><\/a>, the top 20 Dogecoin holders preside over 50% of the supply \u2014 20 entities hold over 5 billion dollars of the cryptocurrency.<\/p>\n<p class=\"p1\">The currency\u2019s cofounder, Jackson Palmer, who left the project in 2015, has since <a href=\"https:\/\/outspokenoppa.com\/2021\/02\/15\/is-dogecoin-a-worthy-investment\/\"><span class=\"s4\">said<\/span><\/a>, \u201cWith no immediate plans for development, it looks like the coin will slowly become stagnant in the future. The circulating supply of Dogecoin is astronomical, which will deter the price of the cryptocurrency from rising any further.\u201d<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">Meanwhile Billy Marcus, technical brawn behind Dogecoin, told the Wall Street Journal in an <a href=\"https:\/\/www.wsj.com\/articles\/what-is-dogecoin-how-to-say-it-and-why-its-no-longer-a-joke-thanks-elon-11612820776\"><span class=\"s4\">interview<\/span><\/a>, \u201cThe idea of dogecoin being worth 8 cents as the same as GameStop being worth $325. It doesn\u2019t make sense. It\u2019s super absurd. The coin design was absurd.\u201d<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">As far as its legitimacy as an investment is concerned, Dogecoin\u2019s entire value is attributed to the hype surrounding it. Its value ebbs and flows according to the number of times Elon Musk tweets about it, and the amount of money other people are willing to put down just to partake in a meme. Much like the GameStop craze that preceded it, Dogecoin\u2019s value is not based on anything tangible, but merely the attention it garners.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">In his same interview with Vice, Palmer <a href=\"https:\/\/www.vice.com\/en\/article\/jp5x3d\/dogecoins-founders-believe-in-the-power-of-meme-currencies\"><span class=\"s4\">left<\/span><\/a> an optimistic outlook on his accidental creation, citing its caustic origins as, for many people, a beguiling steppingstone into the intimidating and foreign world of digital currencies,<\/p>\n<blockquote>\n<p class=\"p1\"><em>\u201cCryptocurrency has a lot of growing to do, and it also has a lot of stabilizing to do\u2026 If all we\u2019ve done with Dogecoin at the end of the day is grow awareness in a decentralized currency such as Bitcoin, then I think we\u2019ve done a good job, because for a lot of the people who are using Doge now, it\u2019s their first cryptocurrency that they\u2019ve ever used, and they\u2019ve started mining. They\u2019re learning, and I think it\u2019s great that people actually want to learn about it because it\u2019s associated with this doge meme.\u201d<\/em><\/p>\n<\/blockquote>\n<p class=\"p1\"><span class=\"s1\"><em>Follow Harry Khachatrian on<\/em> <a href=\"https:\/\/twitter.com\/Harry1T6\"><span class=\"s4\"><em>Twitter<\/em><\/span><\/a>.<\/span><\/p>\n<p><em>The views expressed in this piece are the author\u2019s own and do not necessarily represent those of The Daily Wire.<\/em><\/p>\n<p><em>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a\u00a0<\/em><a href=\"https:\/\/www.dailywire.com\/subscribe\"><em>member<\/em><\/a><em>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hot off the heels of the Reddit\u2013fueled GameStop stock surge comes a new investing craze by the name of \u201cDogecoin.\u201d This latest fad in cryptocurrency recently shot up several orders &#8230;<\/p>\n","protected":false},"author":1,"featured_media":2274008,"comment_status":"close","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/02\/GettyImages-1299388486-1200x800-1.jpg","fifu_image_alt":"What Is Dogecoin? What You Need To Know About The Latest Viral Cryptocurrency","footnotes":""},"categories":[],"tags":[],"class_list":["post-163773","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/02\/GettyImages-1299388486-1200x800-1.jpg","fifu_image_alt":"What Is Dogecoin? What You Need To Know About The Latest Viral Cryptocurrency","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/163773","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=163773"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/163773\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2274008"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=163773"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=163773"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=163773"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}