Dogecoin is a cryptocurrency that was a joke, as evidenced by the picture using the head of a Shiba Inu dog and funny captions that read “much wow.” It has significantly valued itself in the last few days, following the recent U.S. presidential election. The coin’s performance through several factors may have been boosted by a combination of political moves from Trump and involvement of Elon Musk, but there lies more to what is behind the current hype.
What Is Dogecoin?
Dogecoin is one type of cryptocurrency, which indicates that it is a decentralized digital currency not issued by any kind of central body, such as a government or bank. It can be used to acquire and trade goods and services, especially in online spaces, with its price changing according to demand in the market. It was developed from a meme at first, and it was actually a joke; however, it gained followers over time. Pundits say despite lighthearted origins, some supporters believe it could be an alternative to traditional currencies in enabling internet transactions without government control.
How much has Dogecoin risen?
Just before the U.S. Election Day, one Dogecoin was trading below 16 cents. But since the election results were announced, the price has more than doubled to around 41.5 cents at midday Wednesday, CoinDesk said.
Why Is Dogecoin Climbing?
This is not an isolated phenomenon-the price of many cryptocurrencies, including Bitcoin, has skyrocketed in the days after Trump was declared the winner of the election. Cryptocurrencies, in general, and Bitcoin, in particular, have seen significant gains recently. For instance, Bitcoin reached its peak ever recently after reporting that it surpassed $92,000. In fact, Bitcoin had rallied from under $43,000 early this year. Trump’s continued accolades for cryptos must surely have influenced the rising interest in digital currencies. Of course, his rhetoric about wanting the U.S. to be the “crypto capital of the planet” and his actual suggestion about creating a Bitcoin “strategic reserve,” for instance do cause excitement across government circles and accordingly drive up prices.
The Elon Musk Factor
It was long overdue as Elon Musk, CEO of Tesla, had been promoting Dogecoin for ages with his multiple playful references to the currency. His influence helped make Dogecoin global. He took to Saturday Night Live in 2021, wearing a vest labeled “The Dogfather,” and late last quarter stated that Twitter might start accepting Dogecoin as payment for its services.
The latest boost for Dogecoin came when Trump announced the creation of the “Department of Government Efficiency,” an initiative that will operate outside of the traditional government structure and advise the White House about reforms. And how it works is to work closely with the Office of Management and Budget to make a more entrepreneurial approach toward the government. Importantly, the department’s abbreviation happens to be DOGE—to wit the ticker of the coin on the stock markets in which it trades. Musk will lead the charge himself, supported by former presidential candidate Vivek Ramaswamy.
Is All This Just a Coincidence?
While the rise of Dogecoin is partially attributed to a confluence of some or all of these factors, such as Trump’s pro-crypto stance and Musk’s sustained influence, it is undoubtedly another step in a far greater crossover between politics, business, and digital currencies. The DOGE acronym, even if meaningless, was nonetheless very useful in catapulting this cryptocurrency to the stage.
The History of Dogecoin
There are many weird things in Dogecoin history. Its fan base attempted, in 2021, to rally the coin’s price to $1 on “Doge Day,” which was scheduled for April 20. April 20, or 4/20, has a long history in the cannabis culture, and Musk often alluded to the number 420; he even invoked it in a tweet in which he tried to convince investors to take Tesla private at a price of $420 per share.
What About The Dog’s Meme?
The Shiba Inu dog who became the face of Dogecoin’s meme, known as Kabosu, sad news; this dog sadly passed away earlier this year at the age of 18. Despite that, the dogecoin community was evermore honored by Kabosu’s legacy through her meme, which is still being shared widely across the internet.
ALSO READ: CIA’s Asif Rahman Arrested In Cambodia For Alleged National Security Breach
