The Phenomenon Of The Cryptocurrency Dogecoin: The Back Story

The Phenomenon Of The Cryptocurrency Dogecoin: The Back Story

What Is The Dogecoin Phenomenon?

Dogecoin (DOGE) was born from the popular internet meme “Doge” and its logo features a Shiba Inu dog. This crypto coin currency was founded in December 2013 by Billy Marcus of Portland, Oregon and Jackson Palmer of Sydney, Australia. This was intended as a fork from Litecoin. The creators of Dogecoin saw it as a fun and stress-free cryptocurrency that would also have appeal outside of Bitcoin’s core audience as it references the famous dog meme. What the DOGE phenomenon is all about is explained in more detail in this overview of cryptocurrencies.

The Phenomenon Of The Doge Triangle

Earlier in the last year, the coin hit a peak in daily trading volume. This record is still maintained and could not be broken to date. After that, the pattern of the price action changed and became wavy, with each consecutive upper impulse opening a new price range and a logical retracement to the around 50% level.

Such a situation has already been repeated several times. Analysts call it the “Doge triangle phenomenon”. Even a novice analyst will find a dozen converging triangles on the chart or an illustration of the analysis. Typically, this is a pattern that indicates a likely continuation of the trend. And they all resolve on the upside, within the forecast range.

Also Read About: What is Dogecoin?

Features Of The Investment Of A Coin

The main feature that interests an investor with Germany in a cryptocurrency like DOGE is how much such an asset is worth not only now, but also its price in a week, a month, a year. Today, 1 Dogecoin equals 28 US cents or 210 in rubles. You can quickly and easily exchange cryptocurrencies with cryptocurrencies.

From the point of view of fundamental analysis – the development of blockchain transaction systems, the increasing use of cryptocurrencies in parallel with fiat money will increase the value of the most liquid digital coins. To give you an example, just 5 years ago, the entire cryptocurrency market was worth no more than $100 billion. The cryptocurrency market cap is now $2.15 trillion. That is twenty times more on the higher side.

What is Dogecoin? Story Behind Dogecoin. | by Akash Patel | Feb, 2021 |  Medium | DataDrivenInvestor

The coin holds a respectable 7th place in the top 10 world cryptocurrency rankings. This also applies to the amount of capitalization – more than USD 35 billion – and daily trading volume – around USD 2 billion.

Assuming this trend continues, over the next 4-5 years, i.e. between 2025 and 2026, be worth over $40 trillion (about 30% of world money). If we consider the most optimistic scenario, we can expect the Dogecoin price to be somewhere around $2-4. But that’s just a guess, and such prices will likely be seen much sooner.

Tokenomics – Basic Functional Parameters Of The Crypto Coin Dogecoin

The basic technical and functional characteristic of the Dogecoin coin price, necessary for investors and traders, is the issuance of the cryptocurrency. There are now a total of about 129 billion units in circulation. At the same time, the initial offering was only $100 billion.

This is mainly because Dogecoin’s digital platform is based on the blockchain platform of another well-known cryptocurrency, LightCoin. In 2014, a hard fork was performed and another 5 billion coins were added to the network. The hard fork is additional output through unbundling. Further increases in coins on the network are mainly due to mining.

Transaction System In The Cryptocurrency Network

The protocol for encrypting and creating a coin is based on the ERC-20 encryption standard. That is, it is based on a scheme of Proof of Work. The transactions use an encryption system with a special 34-bit hash addressing codes consisting of 34 numeric and alphanumeric characters.