What Is Dogecoin? Top 8 Reasons Why Dogecoin Crypto Is Worth The Investment In 2021
Not only has 2021 experienced a bullish run, but it has also been dubbed as the season of the altcoin. Bitcoin and many altcoins have yielded a massive return so far this year for investors.
If you had bought Bitcoin early this year, your return on investment would have surpassed over 70% as of March 2021. If you have missed the boat, well, it is never too late. Here is another opportunity for you. So, if you can’t buy bitcoin or other first-tier altcoins—Dogecoin is still very cheap to add to your portfolio. The internet meme coin has done 14,000% ROI so far in 2021 and still has many potentials to grow even more.
As you read along, you will better understand what Dogecoin is and the top eight reasons you should buy Dogecoin in 2021. Even though it has no serious intent behind its creation, it has become one of the most popular cryptocurrencies in 2021.
Let’s jump straight in.
What is Dogecoin?
Dogecoin is the similitude of cryptocurrencies like—Bitcoin and Ethereum. And it was created to be a meme coin. They made it to be a joke coin for crypto lovers, and as at the time of the writing, Dogecoin is the fifth largest coin on the coin market cap, with a 61.93 billion dollar market cap. Presently, it is ahead of coins like XRP, Bitcoin Cash, and Litecoin. With only Bitcoin, Ethereum, Cardano, and Binance Coin with a larger market cap.
A brief history…
Billy Marcus and Jackson Palmer, a worker in Adobe, were behind the creation of Dogecoin, and they created it in 2013.
Dogecoin is a decentralized, peer-to-peer digital currency capable of sending and receiving money online.
Dogecoin was created to transfer money in a fun, faster, easier, and seamless manner. And like Bitcoin, you can also use it as a store and transfer value from one place to another globally.
It has been used on platforms like Twitter and Reddit to reward content creators.
Here are the top 8 reasons why you should buy Dogecoin in 2021
There are various reasons why you should consider investing in Dogecoin right now. However, some reasons might be new to you. For the long term or short term, here are the top eight reasons you should buy Dogecoin. It is important to note that this is not financial advice. We advise you to do your own research (DYOR) before investing in any coin.
Doge has the backing of one of the world’s richest men
You probably know who this is; he is no other than Elon Musk, the founder of SpaceX and Tesla. If there is one thing you need to know about him, it is: whatever he sets out to achieve, he never backs down and goes all in until his mission is accomplished.
Elon has never hidden his support for Dogecoin; in fact, he said a few days ago that Tesla could start accepting Doge as a means of payment. He also confirmed that he is working with Doge developers. And since the tech giant took an interest in crypto, the price has surged. Plus, despite the recent dive in the crypto market price, Doge gas maintains reasonable price stability.
1. Doge is a first-tier cryptocurrency based on Market cap
The position of any coin on the coin market cap speaks volumes about cryptocurrency. Bitcoin, the father of all crypto, has been the undisputed topmost ranked crypto for years now, while Ethereum and other alternate positions.
As of the time of this writing, Dogecoin is the fifth largest in terms of market cap. If you want to buy cryptocurrency in India, aside from prices that help measure a crypto value, the market cap shows a complete story and the potential growth of any cryptocurrency.
2. A massive Fan base and Celebrity Endorsement
Aside from celebrities like Elon Musk, Doge has garnered enormous support from stars like Snoop Dog, Mia Khalifa, and a host of others. What is more, Doge has massive community support from the Reddit platform? Did I mention that the famous billionaire Mark Cuban is reported to have bought Doge for his son? Mark is said to have compared Doge with Lottery tickets because of its meager entry price. If you are afraid to buy Bitcoin in India because of its price, why not buy the internet meme coin?
3. More Diamond hands are buying Doge
There is an influx of diamond hands into Doge now. A few minutes back, when Doge hit a new all-time high at 0.68 market price, many Doge holders refused to sell and take profit. The trend was that Doge to hit $1 is a milestone and not the goal.
Businessinsider published an article a few days ago, where the billionaire Mark Cuban has said that he holds 3,250 Doge for his 11-year-old son. It is evident that this is a long-term investment.
We could attribute part of the recent surge in the price of Doge to Diamond hands. This is because a large percentage of those who are coming into Doge are from Robinhood. The stronger and bolder the diamond’s hands, the better it is for the price of Doge. We have seen in recent times where despite the dives, Doge remains gallant and refuses to dip.
4. Resurrected and active Developers
Truth be told, Doge developers have gone under the carpet for years now. But until recently, the team is fully functional now. The success or failure of a coin rests in the hands of the developers. If the developers are not up and doing, it will never reach its peak and potential. A closer look at Ethereum is a good example. Because of its high gas fee, many still cannot get into it.
Doge, a few days ago, announced that they have been working with Elon Musk since 2019. Elon Musk, as mentioned earlier, is not your regular investor.
5. The Inflationary nature of Dogecoin
Cryptocurrency can either be Inflationary, Deflationary or pegged. When crypto is inflationary, it means it is unlimited in supply. Deflationary means the supply is limited, but if crypto is pegged, then it is matched against USD.
The primary essence of Bitcoin’s creation is for money to be decentralized and probably replace fiat current. However, since Bitcoin is deflationary, it has failed to live up to its primary purpose–it has now been used as a store of value. This is because deflationary crypto gets scarce as people buy Bitcoin India and hold it.
With the shortcomings of the deflationary coin, inflationary crypto-like Doge is the solution. This is because Doge is minted daily. And unlike when people buy bitcoin India to keep leads to scarcity, the same does not apply with Doge.
6. Legitimacy and low market price
Doge has been around since 2013; however, it took over seven years to be widely known. That it has been around for a while proves its legitimacy. Although it has been around for years yet it has a meager value before now.
Looking at Doge’s historicity and its low value and popularity, Dogecoin is one of the top investable cryptos in 2021, especially for young investors. If you think you can’t buy Bitcoin in India because of its high price and looking for a low-value coin, DOGE IT IS.
7. Dogecoin can now be mined without extra cost
Dogecoin mining has never been this easy. Unlike before, you do not need extra energy and a machine to mine Dogecoin as it is now linked with the Litecoin block.
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