Much akin to any other cryptocoin, Dogecoin is also a digital currency which can be purchased and traded just like any investment and expended like money.
Though it shares a number of similarities like its brethren like its code which is based upon the script for litecoin, there are some major differences.
Bitcoin(BTC) has a finite number of tokens , 21million whereas Dogecoin has 129 billion tokens in circulation and counting. This is because Dogecoin makes new blocks of coins available to mine each year. It is not surprising that one Dogecoin value is three dimes while the value of Bitcoin is $23K.
Dogecoin And Elon Musk Tweets
Dogecoin has in circulation tokens worth $50 billion and it is a respectable figure for a digital currency which was started more like a joke coin. As per CoinMarketCap Dogecoin is presently the No. 5 most-valuable cryptocurrency in the crypto currency market and its value has surged by more than 6,000% this year.
Dogecoin is a hot favorite of Tesla (TSLA) CEO Elon Musk and his tweets have often led to steep rise in values of Dogecoin. Something similar happened on Friday when Musk’s tweet sent the prices of Dogecoin surging.
Cryptocurrency are gaining more and more prominence but Dogecoin does not still much use in the real world. It is only of use in some niche markets for example it is used to tip online artists.
Although cryptos are gaining more acceptance as a currency for purchasing goods, dogecoin doesn’t have much mainstream real-world use. It has a few niche markets, including using dogecoin to tip online artists.
Usman Chohan, economist at the University of New South Wales Business School, in a paper updated in February about the digital currency, wrote “Dogecoin is not so much an alternative deflationary numismatic instrument as it is an inflationary leisured exploration of community-building around a cryptoasset,”