London, England, 2 June 2021, ZEXPRWIRE, Cryptocurrencies have been accessible to traders for nearly a decade and in that time only a few have been able to make their mark in the mainstream marketplace. Bitcoin and Ethereum are some of the most popular cryptocurrencies in the world with other crypto serving a more of a support role for the technology rather than the currency itself. Bitcoin and Ethereum are some of the most sought cryptocurrencies which mean that they have a solid standing in front of the dollar in financial markets.
The Investment Center broker Ben Silver isolates the factors to determine the reason behind the existence of so many cryptocurrencies and how Dogecoin became a major player in the crypto market. This largely has to do with the policy adopted by the designer of the crypto technology.
Cryptocurrencies are simply a product based on the system known as a blockchain. At the beginning of the crypto age, there were very few currencies that used blockchain technology as their primary infrastructure. This meant that the crypto market was not even saturated since it hadn’t entered the investor feed yet.
In 2017 something amazing happened. Major investment firms realized the potential of blockchain replacing the old financial system and everyone wanted in since we are talking about controlling the world’s economic power. Naturally, as soon as Bitcoin went up and speared through the $10,000 mark pretty much everyone was making their cryptocurrency.
Satoshi Nakamoto was the coder who released the firmware required to create a cryptocurrency and he made sure that no central system would have exclusive access to his code which is why he made it an open-source system meaning that anyone could access it and create their cryptocurrency. This meant that the user would not have to pay royalty fees to the firmware designer and all they would need is a computer and a basic server system to handle the complex calculations. All of the requirements are easily available and can be purchased for cheap especially with the advancements in computer technologies.
Doge Is Born
While crypto did initially go mainstream in 2017 when it broke records, it was actually in 2013 when the rise started. People were starting to gain interest in this new technology and many investment firms had already made significant investments in major cryptocurrencies such as Bitcoin and Ethereum. Around the same time, there was a lot of speculation regarding the reliability of cryptocurrencies since it was still a relatively new concept. This prompted a couple of software engineers to develop their cryptocurrency using blockchain technology as a joke to highlight the “stupidity” in trading with cryptocurrencies.
When Crypto soared through the market in 2017, the doge was relatively unknown but it is well known that social media is a powerful tool and it played its hand in pushing dogecoin to enter the mainstream market along with industry supported cryptos such as Ethereum and Bitcoin. Dogecoin became a meme and it garnered a sort of cult-like following albeit Dogecoin was based on an actual blockchain. It had every trait crypto such as Bitcoin has but it lacked industry support. Since industries were reluctant in supporting a meme, it was up to the users to provide support for it.
Meme To Dream
So, what started as a meme ended up becoming one of the biggest cryptocurrencies in the world. Today, Dogecoin rests at a semi-stable 0.34 dollars with slight variations depending upon the situation in the marketplace. Remarkably, something as ridiculous as dogecoin can become a part of the next generation of the financial system and it is quite possible considering the Dogecoin isn’t technically that far from Bitcoin in terms of support. Bitcoin may have industry support but it is the consumer who holds all the power and right now doge is flying high.
Can dogecoin be a smart investment? Well technically yes. Dogecoin is the same as Bitcoin since it uses the same transaction infrastructure. It uses the same blockchain technology to secure its transactions and it has multiple nodes to ensure that no third party can access any individual account. Doge is a cheaper Bitcoin and that might be what’s keeping it from reaching the top. Dogecoin needs Bitcoin more than Bitcoin needs Dogecoin. Regardless of what Dogecoin has become, it will always be a meme with consumer backing. The only way for Dogecoin to stay at the top of the charts is if it has something to be compared to. Bitcoin is the crypto standard for now and it isn’t doing well considering that it has lost almost 20 % of its valuation.
So, when you are trying to decide whether it is a good idea to invest in Dogecoin in hopes that it might overtake Bitcoin as the crypto standard it is possible but highly unlikely since Bitcoin is to crypto what gold is to regional currency.
Disclaimer: Our content is intended to be used for informational purposes only.
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You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
Source: Investment Center Reports
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