Could Dogecoin Be A Millionaire-Maker Coin?
Dogecoin has had an explosive rise. Is it too late to jump in?
Many cryptocurrency experts and analysts believe 2021 is the year for digital assets. Within just four months, we have already witnessed assets like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA) reach their all-time highs. However, these assets are not the only ones poised for a bull run. The notoriously famous Dogecoin (DOGE) is highly likely to rally and generate massive returns in the future.
After starting as a joke seven years ago, Dogecoin has become one of the best-performing assets of the year. The coin has surged by more than 15,300% in 2021 after starting the year trading at 0.0046. Over the month of May, DOGE has risen from slightly less than $0.06 to a recent high of around $0.70. That marks a gain of over 1,000%.
The coin's rapidly increasing popularity makes us question if Dogecoin could become a millionaire-maker crypto asset.
Dogecoin has the potential to be a millionaire-maker, considering the significant growth that the cryptocurrency is predicted to experience in the coming years.
Before we talk about Dogecoin's potential as an investment, let's take a look at what the Dogecoin asset is, the factors that could make it a stellar investment, and a bit about its price history. Currently, Dogecoin, the joke crypto, is nearing its all-time high, and every prediction suggests that it could go even higher.
Dogecoin: What Is It?
Dogecoin is a cryptocurrency that was started as a joke at the end of 2013. It is usually referred to as a meme cryptocurrency because it was inspired by a famous meme of a Shiba Inu, a breed of Japanese hunting dog.
From a technical viewpoint, Dogecoin is a first-generation digital asset that can be used to transfer value worldwide in a secure manner. According to its website, Dogecoin is an "open-source, peer-to-peer digital currency." DOGE tokens can be sent instantaneously to anybody on the internet without a bank having to enable the transaction because it is part of a decentralized network.
While Bitcoin has a maximum supply of 21 million tokens, Dogecoin has 131 billion tokens in circulation and counting. Hence, there is no solid supply-and-demand dynamic associated with its price. In recent times, Dogecoin has seen significant coverage in the media due to its massive price swings.
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Is Dogecoin A Millionaire Maker Investment?
Similar to all first-generation cryptocurrencies, Dogecoin is basic in functionality. Back in 2013, concepts of smart contracts, staking, and other prevailing features did not exist. For these early coins, the main focus was on creating a secure network. To that degree, Dogecoin succeeded very well.
One of the things that make DOGE unique is the spirit in which the developers created it. Interestingly, this popular coin was built to spread fun and goodwill across the crypto community. There are several benefits that Dogecoin brings to the market. For instance, people can use this DOGE coin just like Bitcoin to instantly and securely send value to anyone globally.
Over the last few years, the coin's popularity has increased rapidly, and now, more merchants than ever accept this unique token. For this and more reasons, Dogecoin holds the potential to become a millionaire-maker crypto asset.
Factors That Could Make Dogecoin A Millionaire Maker
Numerous factors affect the price of Dogecoin, including the sentiments expressed by celebrities, network improvements, etc. Here are some factors that could make DOGE a millionaire-maker.
Dogecoin shares many similarities and technical features with the leading cryptocurrency - Bitcoin. Consequently, the Dogecoin network is secure and provides real-time consensus. Like Bitcoin, hackers would have to control 51% of the network's hashing power to change the state of the blockchain. Given that the current Dogecoin hash rate is 203.97 TH/s, this event is unlikely.
Dogecoin's Unique Features
The uniqueness of DOGE lies in the fact that it was created as a parody coin to make people aware of blockchain technology and cryptocurrencies. Eventually, however, it gained immense popularity. Today it is famously known as the meme cryptocurrency and has ample community support.
DOGE is a fork of Litecoin (LTC), which itself was a fork of Bitcoin. Hence, Dogecoin is partially based on Bitcoin's codebase and has some of its compelling features. Comparatively, Dogecoin has faster blocks than Bitcoin. The latter has an average block time of 10 minutes, while DOGE has about 1 minute. Therefore, transactions are much cheaper and quicker on Dogecoin.
Another unique feature of Dogecoin is its commitment to its users. A hack that took place in the first year of its inception led to a significant loss. However, the management put in sufficient effort to repay its investors and was successful. Furthermore, whenever users trade DOGE coins, the network ensures that they have enough profit opportunities and less loss.
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Popularity Amongst Celebrities
Without a doubt, a large part of Dogecoin's popularity and price bursts can be credited to celebrities, especially Elon Musk. The Tesla CEO has been quite vocal about Dogecoin and its features since 2019.
Earlier, Musk took to Twitter to state that Dogecoin can be the "future currency of the earth." Soon after that, there was a high surge in DOGE's value. Later he satirically announced himself as the unofficial CEO of Dogecoin. This boosted Dogecoin to surpass a value of $0.06, leading to a surge of almost 300%.
Apart from Elon Musk, the famous American rapper Snoop Dogg has displayed interest in the meme crypto. He tweeted the meme of Shiba and changed his second name on Twitter to "Snoop Doge." After this tweet, the price of DOGE soared more than 55%, hitting an all-time high.
Furthermore, Gene Simmons, Kevin Jonas, and various other celebrities have endorsed Dogecoin through social media posts and tweets. Thanks to its loyal user base, high popularity on the internet, and worldwide adoption, Dogecoin is likely to explode in 2021 and reach new highs.
Dogecoin's Network and Security
Dogecoin is an open-sourced, peer-to-peer (P2P) network that uses a Proof-of-Work (PoW) consensus mechanism similar to Bitcoin. But unlike BTC, DOGE uses the scrypt mining algorithm. It has lower hash rates and consumes very little energy.
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Dogecoin has one of the most significant daily trading cryptocurrencies in term of volume, and its market capitalization is also growing exponentially. The joke cryptocurrency is extremely popular with both cryptocurrency enthusiasts and investors who think that Dogecoin can become the next millionaire-maker investment.
Although most technical analysis and price forecasts predict that Dogecoin will be bullish over the next few years, cryptocurrency markets remain relatively volatile. DOGE's price could be affected by market sentiments that could change at any time, resulting in a severe loss for investors.
Dogecoin has undoubtedly come a long way since its inception many years ago. Just like many other cryptocurrencies, DOGE is volatile by nature. Thanks to all the hype around this meme crypto, it is likely to surge to unprecedented all-time price highs.
That said, it is wise for investors to research and seek expert opinion before making sizable crypto investments. Cryptocurrency prices are notoriously difficult to predict, so it is prudent that you consider all factors and research well before investing in Dogecoin or any other cryptocurrency.
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