What is Dogecoin

What+is+Dogecoin

Guilherme Sorbara, Journalist

Dogecoin 

 

Recently you may have heard about Dogecoin, in case you haven’t, Dogecoin is a crypto currency that has been everywhere lately due to its immense rise in value. Dogecoin was created as a sarcastic joke in 2013 and was named after a Shiba Inu. The value of dogecoin went up by 1000% in 4 days reaching an all time high of $0.407 per share, and in case you didn’t know how the stock market/crypto works I will give an explanation.

Before I explain how it went up so much I have to explain how the stock market  and crypto works so you can have some background information. The stock market and crypto currency have many ways of investing. For example some of them are just buying a shares of a stock (a part of the company you are investing in) and hoping the stock will go up so you make more money. The stock market can also be used to make “call options”. If you bet the call option quote will go down and indeed goes down, you will make money. If you bet the option will go down and its quote goes up, you lose money. Dogecoin is a inflationary coin, meaning there is an unlimited number of dogecoin.

Now that you know about the stock market I will explain how Dogecoin rose so much in such little time. Recently you may have heard about Dogecoin sky rocketing, but it wasn’t the first time this has happened this year. 4 months ago dogecoin was unheard of and almost no one knew about this crypto currency, because it started off as a sarcastic joke, lots of scams were happening. on January 27 dogecoin jumped from 0.008 per coin to 0.056 to a series of reasons. The main reason was Elon Musk, but big influencers and viral TikTok videos helped.

Elon Musk pumped the coin from 0.008 to 0.056 in 3 days with his fanbase. Elon Musk tweeted about dogecoin and said it was the way to becoming rich, and he kept his word, in only 3 days it jumped over 800% ( keep in mind this was 4 months ago). However, he wanted more, he wanted dogecoin to hit 1$. Elon Musk waited 3 months to get dogecoin to a 1$, he did this due to the fact that he wanted dogecoin (a meme stock)  to hit 1$ on 4/20/2021, national weed day. Elon Musk pumped the coin from 0.056 to an all time high of 0.407 in only about a week. However, he failed getting Dogecoin to 1$.