What Is Dogecoin? Should You Take This ‘Meme’ Currency Seriously?

Dogecoin prices soared on Friday after Elon Musk, Mark Cuban and beef jerky brand Slim Jim backed the cryptocurrency.

(Photo Courtesy: Dogecoin Facebook Page)

The price of Dogecoin, a crypto asset based on the 'doge' meme, shot up on Friday, 16 April, after Elon Musk, Mark Cuban and beef jerky brand Slim Jim backed the cryptocurrency.

According to cryptocurrency data site CoinGecko, Dogecoin was trading at around $0.39, after hitting a record $0.43 earlier in the day. Its market value is more than $47 billion at present.

The company in a statement said that Dogecoin surged past 25 cents for the first time on Thursday evening due to 'extreme pressure' that caused its crypto order system to go down for about an hour.

So if you’re wondering what Dogecoin is and how to buy it in India, we have you covered.

What Is Dogecoin?

Dogecoin was created in 2013 by software engineers Jackson Palmer and Billy Markus. It was intended to be a satirical alternative to Bitcoin.

The currency took its logo and name from a famous meme called 'Doge' that featured the image of a Japanese breed dog Shiba Inu.

Unlike Bitcoin, Dogecoin does not have any upper limit which means there are already more 100 billion dogecoins currently in existence.

How Did Dogecoin Become So Popular?

After SpaceX founder Elon Musk frequently tweeted a foux 'Doge' Magazine cover, the prices of the meme currency rose.

Other celebrities, including rapper Snoop Dogg and rock musician Gene Simmons, have also promoted the crypto asset on social media.

In April, Musk again renewed his interest in the cryptocurrency stating,"Doge barking at the moon."

The main reason that is behind the surge in the prices is said to be the increasing value of other crypto forms – Bitcoin and Ethereum which has propelled the value of Dogecoin.

Is It Safe to Buy Dogecoin?

Dogecoin like any other cryptocurrency is considered to be highly volatile. Industry experts believe that many invest in Dogecoin just for fun with no real intention of making any profits.

Ashish Singhal, CEO and Co-founder, CoinSwitch Kuber told The Quint, "Many invest in Dogecoin just for fun with no real intention of making profits. Some use Dogecoin as a mode to tip online to content creators and to support causes that appeals to them. The currency has been in the limelight for a while now, ever since Elon Musk has been tweeting about it. Whether one should invest in Dogecoin or not is completely subjective. Investments in Dogecoin, just like investments in any other cryptocurrency, should only be done up to an amount that one can afford to lose."

In an interview with The Wall Street Journal, Garrick Hileman, head of research at blockchain.com, said that he worries about the attention given to Dogecoin, as it is a bit of a joke.

How Can You Buy Dogecoin?

Like any other cryptocurrency Dogecoin can be easily bought using credit/debit cards on cryptocurrency exchanges such as Bitbns, WazirX, and CoinSwitch Kuber.