This past year saw further leaps and bounds in the prices of well known cryptocurrencies such as Bitcoin or Ethereum. For those of us less familiar with the digital currency landscape, Dogecoin is one coin we might be yet to hear of. The chances of that are getting less and less likely however, as Dogecoin has made some surprising gains in 2021 that have made headline news around the digital currency world.
So let’s take a look at this latest crypto phenomenon!
What is Dogecoin?
Simply, Dogecoin is another form of cryptocurrency similar to more well known coins such as Bitcoin or Ethereum. Unlike Bitcoin or Ethereum however, there is no limit on the number of Dogecoins that can ever be made. As a result the price of Dogecoin has traditionally stayed relatively low. As of June 2021, Dogecoin has seen highs of $0.35 United States Dollars and lows of $0.09 United States Dollars per coin. As of the 16th June 2021 and the time of writing this article, its price is currently $0.31 United States Dollars a coin.
Where does the name come from?
The name is one of the more unusual parts of Dogecoin, and does its part to explain the coin makers’ philosophy. The coin was made initially as a joke by Billy Marcus and Jackson Palmer. The two software engineers started the coin as a joke back in 2013 and the name services from the once-popular meme with the dog breed of the same name. The joke was meant to be on the various cryptocurrencies and their uses, however the increasing popularity of the coin in 2021 means it is now the fifth largest cryptocurrency on the digital market. Dogecoin unexpectedly has seen a 5,000% increase in its market value in 2021.
Dogecoin uses similar blockchain technology to Bitcoin or Ethereum and uses a ledger to record and secure all transactions made. The ledger is then retained by all holders of the coin in a decentralised digital currency market.
Digital currencies have been making international news since blockchain pioneer currency Bitcoin reached an all time high at the beginning of 2021. Riding on the coat tails of Bitcoin’s success and the increased interest in digital currencies, online coin Ethereum has also reach a peak in its market value.
As of Sunday February 28th 2021 on Ethereum coin was worth $1,380 United States Dollar after reaching highs of $1,960 United States Dollars on Friday 19th February 2021. In comparison, Bitcoin reached a peak of $57,849 United States Dollars on Sunday 21st February 2021, before a relative decline to $46,189 United States Dollars as of Friday 19th February 2021.
The spike comes as more companies are becoming interested in the digital currencies as the number in circulation begins to reach towards its limitations. Bitcoin for example will only ever have a maximum of 21 million coins in circulation. There are currently 18.5 million coins that have been mined, meaning there are only 2.5 million coins left to be unearthed. With far more less to mine, there were 72 million Ether coins launched at generation point but only 18 million Ether have currently been mined.
Interest in the online currencies was peaked when Tesla Inc Chief Executive Officer and billionaire tech entrepreneur, Elon Musk, tweeted on the subject. In a trend for stocks to rise on anything the cult celebrity figure comments on, Bitcoin and Ethereum proved no exception. He went on to comment that “That said, BTC & ETH do seem high lol”.
Fuelling the speculation around digital currencies Musk also commented: “Money is just data that allows us to avoid the inconvenience of barter …” The remark came after a dramatic purchase by Tesla of $1.5 billion Bitcoins. The record purchase is one reason prices for the coin may have risen so high in early to mid February.
Bitcoin is an online currency that has been on the radar for many people for the past few years. Renewed interest in the digital currency has come about though this January 2021 as the online coin’s value has skyrocketed into the new year, and peaked at just over $52,000 Australian Dollars on the 8th January 2021.
There are many speculations for the reasons behind the niche currency’s sudden peak, but rapid increases and decreases in the value of the online coin are not new. Other notable peaks occurred in 2013 and again in 2017, when Bitcoin’s price went from $5,000 USD to $10,000 USD in a matter of months.
Jump to 2021 and Bitcoin’s surging popularity has seen a meteoric 40% rise in 2021, quadrupling its value for the same quarter last year. Prices rose steadily into early January before starting a predictable steady and continuing deterioration in price.
Bitcoin dates back to 2008, when it was supposedly invented by Satoshi Nakamoto – a mysterious and as yet unconfirmed figure. The software was released at open-source in early 2009 in a transaction that took place a prearranged exchange between Nakamoto and an early Bitcoin user.
Papa John’s pizza chain in the USA was the first business to receive a real world transaction of Bitcoin in 2010. A Bitcoin miner chose to spend 10,000 bitcoins on a pizza in Florida – a transaction that would now make the pizza worth roughly $460,000,000 AUD.
At its origin the digital currency was worth less than $0.01 USD a coin at its conception at the beginning of 2010, only reaching $0.08 USD per coin in July. The value of the coin comes from its scarcity as only 21 million Bitcoins will ever be allowed to be mine. As of January 2021 there are just under 3 million coins left to mine meaning roughly 88% percent of all Bitcoins available are currently in circulation.