What is Dogecoin? Explaining Elon Musk’s favorite cryptocurrency

Whether you’re interested in crypto or not, you’ve probably heard of Dogecoin. This meme-based cryptocurrency — Elon Musk’s favorite — is making headlines again.

The cryptocurrency soared nearly 50% in a week to $0.22 on rumors that Musk would add it to X as a payment method.

It all started with Musk’s cryptic post on March 25, in which he shared an image linking X’s logo with a payment company, calling it an “everything app.” In the caption, he wrote, “The circle will be complete.”

Musk had once mentioned that the everything app would replace YouTube, LinkedIn, dating apps, and even banks. The post has raised the hopes of Dogecoin lovers who are waiting for X to accept it as a payment method.

Musk and Doge have a long-standing relationship. Let’s recap their affair.

Who created Dogecoin?

Created as a joke by software engineers Billy Markus and Jackson Palmer in 2013, Dogecoin features the likeness of the Shiba Inu dog popularized in the Doge meme.

But what initially began as a joke would transform into one of the world’s most valuable cryptocurrencies.

How did Dogecoin get overnight success?

The credit for Doge’s success goes to the GameStop saga that began in January 2021. The meme stock reached its peak when a group of small investors, encouraged by the Reddit community WallStreetBets and helped along by an Elon Musk tweet, skyrocketed GameStop shares to $86.88 in January 2021.

On Reddit, investors later discussed what cryptocurrency is equivalent to meme stock GameStop — and the answer was Dogecoin. That’s how Dogecoin came into the limelight, and just as GameStop reached its peak, Dogecoin started to gain traction, peaking in May 2021 at $0.74 per coin.

When Musk became a proud Dogefather

After the GameStop saga, another event sent Dogecoin to the moon. One fine day, Elon Musk tweeted a word on Twitter: Doge. The price surged dramatically as media attention was garnered, and crypto enthusiasts suddenly became interested in Dogecoin.

Later in the year, Musk hosted NBC’s “Saturday Night Live” and called himself a Dogefather. He continued promoting Dogecoin on various platforms, leading to its inclusion in the top 10 cryptocurrencies by market capitalization.

Musk’s obsession with Dogecoin continued. Once, he said Doge is his favorite cryptocurrency because “it has the best humor and it has dogs.”

Doge has the back of Tesla and SpaceX

Musk also made sure to incorporate Dogecoin into his electric vehicle and space mission. At Tesla, Dogecoin can be used to purchase select merchandise, like Cyberquad for Kids, Giga Texas Belt Buckle, and Cyberwhistle.

Musk hinted recently that Dogecoin could be accepted as a payment method at Tesla in the future.

Moreover, SpaceX has also accepted Dogecoin as payment for the rescheduling of the DOGE-1 lunar mission.

Will X accept Doge as a payment method?

When X was still Twitter in 2021, it already accepted Bitcoin as a payment method for tipping. This was regarded as the first experiment in which cryptocurrency was used as a payment method on any social media.

So, the acceptance of Doge as a payment method on X won’t come as a complete surprise. If and when X accepts Doge, it could just send Dogecoin and other cryptocurrencies to the moon once again.

Be the first to comment

Leave a Reply

Your email address will not be published.