Dogecoin that literally started as a joke, currently values more than 40 billion US dollars. It was created by Jackson Palmer, an Australian Adobe software engineer who used to laugh at the craziness of the crypto market. Then one day in 2013, he combined two of the most trending topics (the Doge meme and cryptocurrency) of that time and came up with a fictional coin. Moreover, he also tweeted that after Bitcoin, Dogecoin will be the next big digital currency. His tweet turned his imaginary coin into reality.
The Creation of Dogecoin
The tweet of Jackson Palmer became very popular that pushed him to buy the dogecoin.com domain. Moreover, a software engineer from the United States, Billy Markus, who had already tried creating a cryptocurrency “Bells” that failed miserably, contacted Palmer and proposed that both of them should work together. It’s important to note that the idea behind “Bells” cryptocurrency was pretty much similar to Dogecoin as it wasn’t a serious coin as well.
Billy Markus started working on the project immediately, even though Palmer didn’t respond. Within just three hours, he configured the source code of Bitcoin and made some changes, such as creating 100 billion DOGE and changing the font to comic sans.
Billy showed the progress to Palmer, and both partnered up. Finally, on 15th December 2013, Dogecoin was live, and Billy was the first person to mine DOGE. Both of them earned about 5000 US dollars each after splitting the mined coins 50-50.
The Efforts of Redditors
Right after its launch, Dogecoin exploded on Reddit almost instantly, and within just 10 days, it reached the market capitalization of more than 8 million US dollars.
The tipping practice of Reddit played the biggest role in making Dogecoin popular at that time. Tipping is a popular practice among Reddit users in which they reward people for doing something good. Dogecoin became the tip bot on Reddit.
The Joke Started Achieving New Heights
After a month of Dogecoin’s creation, the founder Jackson Palmer came up with a unique yet hilarious idea in January 2014. The team of the Dogecoin put a certain address on its Reddit community’s subreddit and generated 25,000 US dollars for donation. It was done to support the Jamaican bobsleigh team that didn’t have enough money to attend the Winter Olympics. Moreover, both of the founders, Markus and Palmer, donated their Dogecoins to different charities.
On 12th February 2014, right after two months of the creation, the market capitalization of Dogecoin reached more than 89 million US dollars. Later on, in 2015, some big incidents happened, such as Markus decided to leave the project, and Palmer also followed the same. But the community continued to grow, and on 25th December 2017, the market capitalization of Dogecoin hit the 1 billion US dollar mark. However, the cryptocurrency collapsed dramatically throughout 2018, and by the end of the year, it barely touched 275 million US dollars.
The Resurrection of Dogecoin
The value of Dogecoin continued to increase gradually until February 2021, when the community member of GME (GameStop) on Reddit started taking an interest in Dogecoin. It helped the cryptocurrency to increase its price by 250 percent.
But Elon Musk (who is one of the most popular business tycoons and the founder of Tesla) is the most prominent and loudest supporter of dogecoin. By using the power of one of the social media platforms (Twitter), he caused another explosion to take the Dogecoin value to the next level. He tweeted where the rocket was blasting off with the Dogecoin icon to the moon. Resultantly, Dogecoin experienced its all-time high market capitalization of more than 88 billion US dollars on 7th May 2021.
Mimicry and Memes
It’ll surely amaze you that the concept of the Meme was first defined back in 1976 by Richard Dawkins, who is a popular evolutionary biologist. According to that definition, a meme is a style or behavior that spreads at a fast pace from one individual to another in a given culture.
Memes are created to portray an emotional condition in a simple and understandable manner. They are excellent elicitors of empathy and represent a common experience shared by both the artist and the audience.
Jackson Palmer used the same bridge to connect to the public even though it wasn’t his intention. The results, as you can see, are impressive, which made it easy for the public to share, adopt Dogecoin with entirely a different interpretation.
The Relation of Dogecoin with Other Cryptocurrencies
Many people have criticized the crypto world because of the dogecoin phenomenon. Many people believe that it’s nothing more than an attempt to bash all the other cryptocurrencies that it’s just an imaginary bubble that can burst anytime. However, there is nothing new about speculative bubbles. They have occurred in the past, and they will definitely happen in the future. That’s because the speculative bubbles are generated by feelings of fear, longing, and desire, which all are human nature’s integral parts.
In the current landscape of cryptocurrency, Dogecoin is not a joke anymore. Its popularity has skyrocketed this year, thanks in part to the widespread acceptance of other cryptocurrencies, especially Bitcoin. Whether it’s a good investment or not is still up for debate. Dogecoin, like the generally acknowledged and more actively traded cryptocurrencies like bitcoin, is extremely volatile, but the progress that it has shown this year is just stunning.
Future of Dogecoin
As mentioned earlier, Dogecoin, just like most cryptocurrencies, is very volatile. That’s because, in order to sustain the value, there are no basics, and it entirely depends upon a narrative. Within a few months, the market capitalization of Dogecoin reached around 90 billion US dollars from a few hundred million, and now at the time of writing, it’s about 40 billion US dollars. That’s why no one can say with certainty where cryptocurrency will go in the future. Only time will decide whether it experiences another jump or goes down by 90 percent.