Despite FG’s ban on local cryptocurrency transactions, Nigerians are not backing down, with P2P transactions helping to keep the industry going. One currency is however, receiving massive attention and interest from investors, that coin is Dogecoin. But what makes Dogecoin special, why are people getting so interested in it?
Dogecoin is a cryptocurrency, like Bitcoin and Ethereum- although it’s a very different animal compared to either of these popular coins. Dogecoin was originally created at least in part as a light-hearted joke for crypto enthusiasts, and took its name from a once-popular meme. Despite this unusual origin story, it has exploded in popularity in 2021—as of writing, Dogecoin has become the fifth largest cryptocurrency by market cap.
What is Dogecoin?
Software engineers Billy Marcus and Jackson Palmer created Dogecoin in late 2013. Palmer branded the cryptocurrency’s logo using a meme popular at the time that featured the deliberately misspelled word “doge” to describe a Shiba Inu dog.
After Dogecoin peaked at a record $0.41 this week, many online trading platforms including Robinhood began to experience major crypto trading outages due to unprecedented demand.
Here’s what experts say about dogecoin that give people belief it’s the new star of the digital currency market.
“Where it takes 10 minutes for the process to ratify new blocks on the Bitcoin blockchain, it takes only one minute on the Dogecoin blockchain.” Gary DeWaal, Chair of Katten’s Financial Markets and Regulation group.
“Many people I know that are investing in the space are focusing on contributing to a decentralised financial system that creates freedom from banks. Dogecoin has had some pretty impressive returns over the last years but it also has the massive perk of being a decentralised form of currency.” Ben Weiss CEO at BTC ATM operator CoinFlip
“The sentiment seems to be: Bitcoin is for the wealthy, Ethereum is for the middle class, and Dogecoin is for the people.” Eric Berman, Senior legal editor of US finance at Thomson Reuters Practical Law.
“I am quite confident that there is no real background to the current phase of Dogecoin’s growth. The rate is currently related related to the general mood of investors on the crypto market and is a kind of indicator of the emotional state of market participants, reflecting their expectations.” Maria Stankevich Chief business development officer at crypto exchange EXMO UK.
“The latest uptick in Dogecoin’s price isn’t indicative of any meaningful value the cryptocurrency offers, it’s just a surge in interest from people looking to get rich quick. That can make for a fun bet, but it’s not good investing. And if you’re the one left holding on to the coins when the Market tanks, you may regret taking a punt in the first place.” David Kimberley, Analyst at UK investing app Freetrade.
An accumulation of interest in the new crypto favorite has taken the cryptocurrency by storm with its 8,000% rally so far this year and it doesn’t look like slowing down.