Trump won the election and Musk became the biggest beneficiary. The Dogecoin he supported rose by 118% in a month, blinding the entire MEME circle. Everyone in the currency circle knows that it is better to play with new things rather than old things. This is the only old altcoin that survived and is doing well.
The coin that has benefited Musk the most in the cryptocurrency circle, besides Bitcoin, is Dogecoin.
The cryptocurrency world is so magical. A person who mocks Bitcoin directly copies the Bitcoin code and makes some changes to it. There are even many BTC letters in the code that are not changed and the currency is issued.
It is such an experimental coin, which was issued out of thin air to see if it would return to zero and disappear. However, after going through the test of time, it finally spawned a bunch of puppies under the support of Musk, and became the leader of MEME, with a market value of up to 28 billion US dollars, ranking eighth among more than 30,000 cryptocurrencies.
This may be the most bizarre story of 2013
Dogecoin was born on December 12, 2013. One of the authors is Jackson Palmer, an Australian brand and marketing expert, and the other is Palmer, a programmer in Portland, Oregon, USA.
Dogecoin is based on the Scrypt algorithm, and the transaction process is more convenient than Bitcoin. The confirmation time of Dogecoin is only 1 minute, while BTC takes 10 minutes. In addition, there are more Dogecoins, the price is low, the transfer speed is fast, and it is suitable for online rewards, which is more in line with the psychological needs of the public and makes it more convenient for civilian development.
Dogecoin has its own core culture. It has a good cultural background - tipping culture, a good humanistic background - charity culture, and a good popularity prospect - grassroots culture. Dogecoin mined 100 billion in the first year, and 5 billion each year thereafter, with no upper limit.
Growth process
Jackson Palmer from Adobe's Sydney marketing department has been researching electronic currencies. After seeing Doge, he suddenly had an idea and tweeted: Invest in Dogecoin, this is the next big opportunity.
Soon after, he received a lot of replies, all encouraging him to continue with this idea.
A week later, he bought the domain name Dogecoin.com, which was included in Doge's base reddit.
Meanwhile, in Portland, Billy Markus had been wanting to create his own digital currency, which he hoped would meet the needs of more people, rather than serve speculators like Bitcoin. Two days after registering the domain name, he stumbled upon this website and immediately felt like he had found his place.
So he sent Palmer a tweet, offering to collaborate, and before Palmer could reply, he began rearranging Bitcoin’s source code and incorporating elements of the Doge Meme.
The two hit it off, and a week after Palmer’s tongue-in-cheek tweet, Dogecoin was born.
With the help of Reddit, the website became popular immediately. In just two weeks, Dogecoin already had its own blog and forum, and its market value reached 8 million US dollars, becoming the seventh largest electronic currency in the world.
How does it do this?
The answer is "tipping". If you perform a pretty good joke on the Internet, people are usually willing to give you a tip in electronic currency. In the United States, where tipping culture is prevalent, this kind of thing is easily accepted.
But Bitcoin is too expensive, so the cheaper Dogecoin is popular. It has become the second largest tipping currency in just one week since its launch. They are hoping that Facebook will accept Dogecoin so that your friends can not only like your post, but also give you a tip.
There are certainly more reasons why Dogecoin is so popular.
Technically speaking, Dogecoin is actually from the same faction as Litecoin. They are both based on the Scrypt algorithm. Like Litecoin, its transaction process is more convenient than Bitcoin, and their quantity is also larger. Dogecoin can mine up to 100 billion, while Bitcoin can mine up to 21 million.
Palmer also mentioned that Dogecoin is not like Bitcoin. People don’t participate in it for speculation. It is a way to express sharing and gratitude.
There are three main reasons why Dogecoin has become popular all over the world:
First, it has a good cultural background - tipping culture. Dogecoin, as an electronic currency, was born on December 12, 2013. It became the second largest tipping currency within just one week of its launch. Many people participate in Dogecoin transactions not for speculation, but as a way to express sharing and gratitude.
Second, it has a good humanistic background - charity culture. Dogecoin has been widely used in charity. After helping the Jamaican bobsleigh team and three Indian athletes to embark on the journey to the Sochi Winter Olympics, the "Doge4Kids" charity fundraising event donated all the proceeds to the 4Paws For Ability charity.
It is understood that the Dogecoin Foundation has sponsored another 30,000 US dollars to solve the water crisis in Kenya. This has to be said to be another charitable event done by Dogecoin that deserves praise.
Third, the popularity index is relatively high. Since its launch, the altcoin meme coin has always been ranked first, exceeding the trading volume of all other altcoins. Large trading volume and good liquidity are an important manifestation of the value of virtual currency.
In 2017, CCTV announced a list of 350 pyramid schemes, including Litecoin, Ripple, Dogecoin, and Infinitycoin.
On May 9, 2021, the price of DOGE (Dogecoin) was $0.73, with the largest intraday drop of more than 35%. The next day, it closed down 25.08%, and eventually started a big drop. From the high point of $0.73 in May to around $0.06 in August 2022, it fell by 92%.
And it has been maintained for nearly a year. That is to say, if you bought 1 million Dogecoins in May 2021, then by August 2022, the principal would be only 80,000 yuan, and it has been like this for about a year and a half, with no improvement. If this happened to you, could you accept it?
This is the cryptocurrency circle. Most of the altcoins in the cryptocurrency circle are like this. Don’t just look at it. It’s crazy when it rises, but you didn’t see it plummet. A drop of more than 90% is not much different from returning to zero.
The drop from 0.73 to 0.06 is a drop of 92%. If it wants to rise back to 0.73 from 0.06, it will have to increase by 1660%. You see, how many altcoins can achieve such an increase? So as mentioned at the beginning of the article, in the currency circle, altcoins only play with new things, not old ones. However, Dogecoin may be an exception.
It may seem that you and I did not participate in the US election, but in fact, we paid for it. Musk ultimately benefited the most from the Dogecoin you bought, and then Musk donated the money he earned from the cryptocurrency circle to Trump.
Just like the war in the Middle East and the Russia-Ukraine war, on the surface they are the ones fighting, but in fact we are the ones paying for it. House prices and stocks have been falling for several years, while oil prices have been rising for several years. Since the start of the Russia-Ukraine war, oil prices have never returned to prices starting with 5. They are fighting, but we have no money.
If you can’t bear a 90% drop in altcoins, you won’t be able to catch a 1000% increase, and this is especially true for the so-called 100x coins.
It can be seen that making money from altcoins in the long run is harder than climbing to the sky.
So if you don’t have strong capital, a sophisticated mentality, and rich trading experience
Maybe you should do as I advocate, not seeking to get rich overnight, but just hope to make progress day by day for one or two cycles, using time to exchange space to slowly become rich.
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