Is Dogecoin a Meme or a Worthy Investment?

Dogecoin originally started out as a joke but has gained traction over the years to become a real cryptocurrency. The value of Dogecoin changes from day to day, almost every hour, but it is still the 6th biggest cryptocurrency to exist on the market.

But is it worth it? Would you be wasting your time if you started investing in it today? Here’s everything that you need to know about Dogecoin.

What is Dogecoin?

it’s similar to Bitcoin, in that it’s a cryptocurrency. It’s a piece of software that is controlled and defined by algorithms, and it’s these algorithms that establish the value of whoever holds the code to the cryptocurrency.

The value continues to accrue over time due to the sheer confidence that people will be able to use it in the future and exchange it for something else of value. However, Dogecoin is more of a peer-to-peer digital currency, allowing for people to make transactions with each other. No physical stores will take them, but Dogecoin can be exchanged for real money.

How Does Dogecoin Work?

Dogecoin uses what is called “blockchain technology,” where each digital exchange is logged for other users to see. Each user then possesses an exact copy, meaning that no one actually controls the data. Frequent updates are made, which require a lot of computing power; that’s where the miners come in.

A miner processes the transactions and logs them into the blockchain through the use of special software to solve complicated math equations in order to confirm the transactions. Dogecoin is then purchased through trading apps and kept in a digital wallet to be used whenever the wallet owner wants.

Is Dogecoin Worth Investing In?

Some people are saying that the cryptocurrency bubble is bursting since they lost about $1 billion in market capitalization earlier this year. This was due to China informing backs and businesses not to conduct transactions in digital currencies. So caution should be exercised if you’re now considering investing in Dogecoin.

Overall, cryptocurrencies like Dogecoin have very limited usefulness as a currency. And anyone who has some coding knowledge can actually create their own form of cryptocurrency. Add social media to the mix, and the price of any cryptocurrency could yo-yo beyond any predictable bounds.

The Current State of Dogecoin

As of June 2021, Dogecoin is currently on sale after hitting its peak around mid-May. However, just because it’s on sale doesn’t mean that you shouldn’t do your research. Rushing into an investment, even one involving cryptocurrency is never a good idea and you could end up regretting it later. There’s no guarantee whether a cryptocurrency will thrive or flop, making Dogecoin a high-risk investment.

Dogecoin isn’t exactly doomed to fail and has continued to improve, but it’s still vital that you enter such an investment with a lot of research under your belt and an understanding of what could happen should it start to drop in value again.