2021 has been a huge year in the world of cryptocurrency. A number of virtual currencies have exploded in value since the calendar flipped to the new year. Bitcoin leads the way as the most valuable and most recognizable crypto in the world, but there are several others out there that have enjoyed a surge in popularity.
One crypto that has surprisingly risen the ranks in recent months is Dogecoin. If you’ve spent much time on the internet within the past decade, you’re presumably familiar with the Doge meme. The meme, which originated back in 2013, typically includes the same image of a Shiba Inu dog accompanied by funny text. The internet is a simple place.
Surprisingly, Dogecoin’s origins date back almost as far.
A pair of software engineers named Jackson Palmer and Billy Marcus created Dogecoin in late 2013 as a way of making fun of Bitcoin. Fans of Dogecoin engaged in a series of light-hearted stunts back then as a way of raising the joke’s profile.
For the next several years, nothing happened with Dogecoin. However, Dogecoin started to make headlines again earlier this year around the same time the infamous Gamestop incident occurred. The same Reddit forum that spawned the surge of interest in Gamestop stock also gathered to try and artificially inflate the value of Dogecoin.
Redditors on the WallStreetBets forum wanted to propel Dogecoin’s value “to the moon.” Since then, that’s exactly what’s happened. Dogecoin’s price has skyrocketed by over 5,000 percent so far this year alone. Tesla CEO Elon Musk has emerged recently as Dogecoin’s most fervent public supporter.
Musk has mentioned Dogecoin several times on Twitter in recent months, and he even joked about it during his recent appearance on Saturday Night Live. Interestingly enough, Dogecoin’s price actually plummeted considerably. You could get a Dogecoin for as little as 44 cents the day after Musk’s SNL exploits.
Can You Mine Dogecoin?
As is the case with other popular cryptos like Bitcoin or Ethereum (for now), Dogecoin uses blockchain technology. Blockchain is a virtual means of storing and keeping records of every transaction made with a variety of cryptocurrencies. Anyone with Dogecoin holds the same copy of Dogecoin’s blockchain ledger, which keeps transactions secure by encrypting data.
The problem with Dogecoin is that there is no cap on the number of Dogecoins that can be unearthed via mining. While you can use Dogecoin the same way you can use any other accepted form of crypto to buy things online, but the value is highly questionable. The lack of a cap means Dogecoin is subjected to inflation issues.
With millions of new Dogecoins being mined every day, there is only so much value to be gained from having one. Bitcoin, conversely, has a total worldwide cap of 21 million, which increases the value of each Bitcoin.
Dogecoin’s Price Jump
At the beginning of April, you could trade a Dogecoin for as little as a nickel. The crypto was generating very little interest from anyone until the aforementioned gang of Redditors joined forces to drive up the value back in April.
As you can see here via Coindesk, the value jumped quite a bit shortly thereafter:
The price of Dogecoin reached an all-time high of 37 cents on April 16 before jumping to 41 cents three days later. Things calmed down a bit after that, but the price leapt back up to 64 cents by Cinco de Mayo. Dogecoin peaked at 72 cents on May 7.
Dogecoin’s Rise Can Be Directly Attributed to Redditors and Musk
Musk has the power to tank or drive the price on any crypto by simply issuing a single tweet. He’s done it with something as massive as Bitcoin on numerous occasions, and his status as Dogecoin’s most famous cheerleader has resulted in a similar outcome for the meme-based crypto.
Of course, it’s worth wondering what the endgame is here. Some in the industry believe this is clearly a bubble bound to burst at any second, which could get ugly for those that have taken the time to mine it Dogecoin over the past couple of months.
Dogecoin’s cheap price also makes it more accessible to the masses. You can trade Dogecoin for just a few cents, while one Bitcoin cost as much as $64,000 earlier this year.
How High Will Dogecoin Go In 2021?
Bitcoin’s price tanked immediately after Musk announced that Tesla would no longer accept Bitcoin as a viable payment method earlier this month. Musk cited environmental concerns tied to mining Bitcoin as the reasoning, which has caused Bitcoin’s price to tumble by nearly 50 percent in a matter of weeks.
Cryptocurrency is an inherently volatile market. While some altcoins, including Ethereum, have made names for themselves over the past few months, it won’t be easy for something like Dogecoin to truly take off. As long as there is no limit on the number of Dogecoin that can be had, the value will remain incredibly low compared to other cryptos.
Elon Musk crashed the Bitcoin price and proposed a radical Dogecoin upgrade to beat Bitcoin https://t.co/RRWkxLZbmL
Celebrities like Musk may hold the keys to just how high Dogecoin will go. While the crypto is clearly on the uptrend, it’s worth wondering whether the price will actually break the $1 barrier at any point in the near future. The price continuing to climb may help get others on board and continue to increase demand, which increases the value.
He said that he has been in touch with the developers of Dogecoin in order to discuss the crypto’s energy efficiency. Is he joking? Is he serious?
Nobody really knows.
If Musk continues to tweet about Dogecoin and drive interest, it’s not impossible to think that the value could reach $1 by the end of 2021. Once that happens, the sky is truly the limit. While many will remain skeptical given the crypto’s origins as a joke, perhaps it’s time to start taking Dogecoin seriously.
Dogecoin will crack $1 by the end of the year.
Taylor Smith has been a staff writer with GamblingSites.org since early 2017. Taylor is primarily a sports writer, though he will occasionally dabble in other things like politics and entertainment betting. His primary specialties are writing about the NBA, Major League Baseball, NFL and domestic and international soccer. Fringe sports like golf and horse racing aren’t exactly his cup of tea, bu ...
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