Is Dogecoin A Good Investment In 2022?

What Is Dogecoin?

Dogecoin (DOGE) is an open-source, peer-to-peer currency designed for sending and receiving digital payments processed through the Dogecoin blockchain network. Dogecoin was first developed as a hard fork of the now-inactive Luckycoin, which was a fork of Litecoin (LTC). As a result, Dogecoin entered the cryptocurrency market as a fork of a fork (of a fork) and gained a reputation as a "joke coin". Without a CEO or other major members in the lead, Dogecoin is primarily driven by its loyal fans, who have remained devoted throughout time. As a "light" cryptocurrency, DOGE is mainly used for tipping online content providers and crowdfunding, although it is also accepted as payment by an increasing number of companies. Despite DOGE's origin as a meme, this cryptocurrency has grown to become one of the top ones by market cap, with 5000% returns in 2021. It is supported by millions of users, including well-known supporters like Elon Musk and Snoop Dogg. 

Dogecoin History: Who Invented DOGE?

Let's begin with the history of Dogecoin. Dogecoin has been in existence for some time. Billy Marcus and Jackson Palmer, two software engineers, created it back in 2013. They combined two of the most popular phenomena of the year to create a new cryptocurrency: Bitcoin and the "doge" meme that featured a Shiba Inu dog. Because Marcus and Jackson intended to create a coin that anybody could use, they used open-source software, which enabled anyone to read the source code. To create the cryptocurrency's logo, Palmer used a joke from the era that contained the purposefully misspelt word "doge" to refer to a Shiba Inu dog.

What Can Dogecoin Be Used For?

One of the biggest questions crypto fans run into is what they can buy with Dogecoin. Keep reading to find the answer to your question!

There were over 2,000 places that accepted Dogecoin as payment as of January 2022. You can use Dogecoin to pay for a variety of products and services, including luxury vehicles from bitcars.eu or a vacation from travolier.com. Even better, Bitpay allows you to exchange your Dogecoins for a prepaid Mastercard that can be used everywhere that takes credit cards. ِAlso, in any business that accepts Dogecoin, you can spend your Dogecoin. Various businesses take DOGE, some of the most well-known ones being the Dallas Mavericks and Elon Musk's SpaceX. Many Dogecoin users give tips to content producers using their DOGE coins on Reddit and other social media platforms.

Elon Musk and Dogecoin

Elon Musk supports and owns some Dogecoin. In July 2022, he confirmed his support for this cryptocurrency, triggering a ferocious DOGE surge that ended Musk's participation on Saturday Night Live. He mentioned that SpaceX would soon follow Tesla in accepting Dogecoin as payment; both companies do so now. Musk said that he is supporting the many people who are not wealthy and have encouraged him to buy and support cryptocurrency. Despite Musk's assurance that DOGE's price would soar after the SNL performance, the DOGE price crashed! Musk appeared to lose interest in the project in the following months, and DOGE's price has since fallen by nearly 70% from its peak. Nevertheless, as evidenced by occasional tweets, Musk still yields power over Dogecoin.

How Do You Mine Dogecoin?

To know how you can mine Dogecoin, you first need to know that Dogecoin's proof-of-work system differs from Bitcoin's in a number of ways, one of which is the use of Scrypt technology. The altcoin also has a one-minute block period, and the overall supply is unlimited, meaning that any number of Dogecoin can be mined. Dogecoin can be mined either individually or by joining a mining pool. On Mac, Windows, or Linux, as well as with a GPU, a miner can mine Doge. Since the mining of Dogecoin and Litecoin were combined in 2014, you can now mine both currencies simultaneously.

What Makes Dogecoin Unique?

Dogecoin adopted a much more casual approach than the numerous cryptocurrencies and digital assets promoted as ambitious and ground-breaking blockchain projects. Dogecoin still provides desirable features like instant transactions, almost zero fees, a lively but lighthearted community, and non-competitive mining. Despite similarities to Litecoin and Bitcoin, Dogecoin stands out as a user-friendly digital currency suited for micropayments and suitable for social media users, content creators, and businesses.

How Is the Dogecoin Network Secured?

Miners protect the blockchain and approve transactions. PoW regulations are maintained by full nodes, and miners use their computing power to solve mathematical problems. A new block is created, transactions are confirmed and permanently recorded, and miners are compensated with 10,000 DOGE by solving an equation.

How to Buy Dogecoin?

On any reputable cryptocurrency exchange like Kraken and Binance, you can purchase Dogecoin. You must create and fund an account with US cash or cryptocurrency on the exchanges. Following that, you'll be able to exchange and acquire cryptocurrencies, including Dogecoin. You may purchase Dogecoin through some online brokers, like TradeStation and Robinhood, in addition to more traditional assets like stocks, bonds, and mutual funds. Contrary to the other coins, Dogecoin is usually available in most exchanges. It's best to transfer your Dogecoin to a cryptocurrency wallet as soon as you've made a purchase, just like with other cryptocurrencies. Wallets come in a variety of shapes and sizes, from mobile apps to actual hard drives to Internet services provided by exchanges like Coinbase.

Is Dogecoin a Good Investment?

If you want to know if Dogecoin has a future and is a promising coin, you just need to know there is minimal incentive to retain Dogecoin for the long term because there is no lifetime cap on how many Dogecoins can exist, and millions of fresh Dogecoins are placed onto the marketplace every single day. Dogecoin has historically had an extremely low value per coin, hovering around $0.003 per coin for the majority of 2020, making people more willing to give them away. However, you cannot ignore that DOGE is backed by many famous faces.

Dogecoin Price Analysis

In May 2021, Dogecoin reached a high price of $0.68, up from the year's beginning value of a little under one penny. Elon Musk, the CEO of Tesla, is at least largely responsible for the enormous increase when he declared Dogecoin his favourite cryptocurrency. By the middle of 2021, Dogecoin was regularly ranked among the top five cryptocurrencies by market cap. Since then, Dogecoin's value has plunged dramatically, bottoming at around $0.11 in March 2022. Despite this, Dogecoin is still one of the top 20 cryptocurrencies by market cap. Currently, on Aug 18, 2022, the price of the DOGE coin revolves around $0.08078.

Dogecoin (DOGE) Price Prediction 2022-2025

After reviewing various features of the DOGE coin and learning about it, we can now move on to DOGE coin price prediction. Based on the price action analysis of the DOGE, it seems that if the community keeps supporting the DOGE coin, the future will be bright! Currently, it is predicted that by the end of 2023, the DOGE coin price will reach $0.32. In 2024, each DOGE coin can touch a higher price level and reach a high of $0.42. By December 2025, the DOGE coin price may have broken the ATH price and be sold at about $0.7. However, all these predictions are based on the project's current status, and new actions may result in new results!

Final Remarks

As you are here, you must have learned quite enough about the DOGE coin's features and price prediction. So, you should be able to think clearly and choose wisely while making investments! When the bear market is as strong as it is right now, it's an excellent opportunity to expand your knowledge and appreciate the details of the top 1500 crypto projects. You may find worthwhile projects and make investments with more assurance by using the free Screener tool and a simple-to-use Watchlist. For more cutting-edge tools to expedite your currency search, visit Cryptologi.st!