Dogecoin is an Altcoin built by software engineers Jackson Palmer and Billy Marcus; it was created as a payment method for cryptocurrencies. Dogecoin was launched on December 6, 2013, and has developed rapidly since 2021 due to the influence and support from Elon Musk.
The Tesla CEO Elon Musk has influenced the crypto market; one tweet from him is enough to send the cryptocurrency market into a frenzy. His influence has been noted as manipulation to some extent, and it has led to the rise and fall of some coins within minutes. Due to the highly decentralized nature of cryptocurrencies, the market has become more volatile with the influence of Forbes’s top-tier business moguls.
Bitcoin has been around since 2009, and it’s the best coin in the market, with more users and an excellent liquidity pool. It rose to fame due to its worth and has become a trendsetter for what cryptocurrency can do, and the new position crypto coins occupy in the global market. Because of this publicity and acceptance, the path has been formed for other coins to thrive.
That said and done, Dogecoin, with the support of Elon Musk, could be the next big thing in the crypto market, and it could overthrow bitcoin. Is it a long road there? Yes, is it doable? Yes. In the last few months, the crypto market has taken hits and experienced unprecedented dumps thanks to the tycoon.
At the beginning of the year, Dogecoin rose in value, and with the economy hit, it lost more than 40% in value, a significant loss in investments and market value. Musk has made a stand that he will not sell his Dogecoin Crypto coins, and he tweeted” a new space race has begun” in response to a comment from BitMex Chief Executive.
In recent times Elon Musk has shifted his support to the more expanded platform to support Dogecoin as his tweet suggested his support to the ethereum co-founder Vitalik Buterin. His suggestion is a possible collaboration between ethereum and Dogecoin. In his words, Vitalik said, and I quote, “if we can have a secure Doge-to-Ethereum bridge, that would be amazing.”
There is a certain aura of power in the financial space Elon Musk carries, a power no money can buy. His need to push for the development of Dogecoin is what will have the cryptocurrency taking over the market and drawing new equilibrium lines in trade.
Ethereum is the second-largest coin with a market cap of more than $272 Billion and still rising. The ethereum blockchain technology hosts DeFi (Decentralized Finance) that has enabled transactions and purchases in the real world. A possible collaboration soon will put the Dogecoin crypto on the map in the crypto market.
However, as an investor, one ought to be very careful with their investments; after all, Elon is a human being and can change his mind any day. If indeed, the coin’s success is based on the support it gets from him, then an intelligent investor would know what to do to secure their investments in the volatile market.
According to the BTC Superstar website, Musk recently met with Doge developers and proposed some changes, and he wrote, “Ideally, Doge speeds up block time ten times, increases Block size ten times and drops fee 100 times, then it’s a win hand down.” However, some investors are not happy with Musk and how he is manipulating the crypto market with the notion that he does what best suits him at the moment.
His tweets in the crypto market go one of two ways, a coin will fall, or it will thrive in a matter of minutes. Musk has accepted payments in Dogecoin for His Tesla Company and any other company He owns related to Tesla and SpaceX when it comes to purchases and payments.
Earlier, Elon had accepted Bitcoin as a mode of payment and later backed down because of climate concerns. He claimed that Bitcoin mining took up so much electrical energy and that he supports cryptocurrencies. However, they needed to be energy efficient to be able to fit in and support the future.
Musk is planning to send up a mission to the moon fully funded by Dogecoin, which ought to take place in the first quarter of 2022. Elon Musk tweeted this news on April 1, April fool’s day; it would be safe to wait because no one knows the entire length of his word.
Cryptocurrency is a financial revolution that the modern-day greatly needs. It carries financial freedoms the human race has not experienced before. Many aspects contribute to the stability and volatility of this market. Some of which include big names like Elon Musk. Musk sends up a rocket to space supported by the doge, then ethereum collaborates with Dogecoin; then, it’s almost a sure bet that Dogecoin is indeed the next big thing.