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The Elon Musk-Dogecoin Connection and the Future

The Elon Musk-Dogecoin Connection and the Future

Introduction to Dogecoin

Dogecoin, pronounced as Dohj-coin, began as a meme-coin and has now taken the world by the storm soon after Elon Musk, tweeted about it. Dogecoin was invented by two software engineers Billy Markus Jackson Palmer, back in 2013 with an intention to capitalize on the market space that lay untapped by bitcoin. The coin with a doge meme symbol inspired by Shiba Inu dog was simply a joke initiated by Palmer, which later picked up momentum on the internet and was supported by Billy Markus, who suggested being a partner, and that’s how Dogecoin was born.

This digital currency follows the open-source protocol similar to Litecoin and hence surpasses the limitation of Bitcoin, i.e., unlike Bitcoins. Dogecoins are not limited by number. Secondly, Reddit back then played a pivotal role in Dogecoin’s success which became a new rage among the Reddit community catapulting the market value of Dogecoin to $8 million. The Dogecoin with a doge meme led to 70% growth within 72 hours after its launch. After this, you must go through dogecoin latest news to learn more relevant updates.

Elon Musk: Dogecoin is the people’s crypto

Elon Musk’s tweets series has brought Dogecoin into the centerstage leading its market value to surge to $ 10 billion. On 4th February, Elon Musk tweeted- Dogecoin is the people’s crypto, followed by another poll on his Twitter account asking if Dogecoin would be the future of cryptocurrency or all other cryptocurrencies combined. The tweet, as of now, has 70.3% people rooting for Dogecoin. He even poked fun as he tweeted Who let the Doge out and even went ahead with a short, entertaining video calling it an instructional video as his tweet read- D for Dogecoin. 

Soon after Elon Musk called Dogecoin, the people’s crypto, the value shot up by 50% and also brought the most popular cryptocurrency into the spotlight through the mainstream media. The biggest reason why it is called as people’s crypto is due to its low price as compared to the much-hyped bitcoin, and that makes the former more accessible to the masses. Secondly, the rationale behind Dogecoin has always been user-friendly and approachable to reach those users that are often demotivated by the intricacies surrounding popular digital currencies like Bitcoins. 

Future of Dogecoin after Elon Musk is talking about dogecoin

A business tycoon, engineer, industrial designer, incredible business leader, and world’s richest man with the power to influence the masses with just one Tweet has brought tremendous value to Dogecoin with his recent tweets. Since last year the value of Dogecoin has skyrocketed by 600%, which was valued far below a penny and rose to 8 cents soon after the Tweets from Tesla and SpaceX founder. 

Dogecoin has the potential to grow as popular as Bitcoin that is now priced at 48000, approximately as of now. Musk has 46 million followers on Twitter who tend to go berserk with just one tweet from him, which explains the frenzy around Dogecoin. Hence, Musk has been a subject to many controversies, with business insiders criticizing him for creating a stir in the Financial market space with his influential tweets. 

What to expect from Dogecoin?

Analysts have delved deeper into the cryptocurrency market to understand its price dynamic and future market index. Crypto Volatility Index (CVIX) is a system that allows us to take a peek at the current and future crypto market situation. As of now, the CVIX of Dogecoin stands at 83 hence it suggests that Dogecoin is up for significant variation in price. According to the crypto rating website, the value of Dogecoin has surged by 545.08 % since last month and will be subject to fluctuations in the next 10-15 days.

While the Wallet investor website, the value of Dogecoin could increase from $0.05 to $ 0.10 within a month. This price variation will bring about a major shift in the overall crypto market price, taking the current cryptocurrency market to $ 0.0343 in March this year and pushing it to $ 0.0390 this year-end. The analysts have also predicted the dogecoin market further till 2026, which may reach $ 0.0417 later part of 2022, $0.0441 by the 2023 year-end, and touch $ 0.05096 by Jan 2026. 

On the other hand, Coinswitch, a cryptocurrency exchange wallet, suggests that although the price may rise in the coming few days, it is estimated that by the year 2025, the value of Dogecoin will fluctuate between $0.0281 to 0.0450. Dogecoin, just like other digital currencies, is subject to volatility and hence traded carefully, although as of now, a bullish market is on cards for Dogecoin. Since Dogecoin inclines toward being more of an inflationary currency, it is suggested that users choose it for active trading instead of locking the amount like a fixed asset.

Conclusion

Dogecoin was created to poke fun at the much hype around the cryptocurrency and ended being the digital currency with a market capitalization of $ 7,598,841,89 with a value of $0.059187 at the time of writing. Nonetheless, Elon Musk has asked crypto enthusiasts to trade carefully even with all the hype in Dogecoin. While the future is speculative, the next 10-15 days are bullish and hence high-yielding. To know more further details about this from experts’ points of view, just go over it, as here you will get in-depth insights about the same.

Ellan Hare is a bitcoin trader and actively participates in bitcoin exchange. She also writes blog to guide people dealing with bitcoin exchange. She write latest bitcoin news for currentbitcoin.news. She is an avid traveller.