Dogecoin: Expert discusses Elon Musk’s tweets
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Dogecoin has hit an all-time high this year when the meme cryptocurrency soared by more than 1,000 percent. After being conceived as a joke focused on a meme featuring a smiling Shiba Inu dog, the cryptocurrency has virtually flatlined. But all of that changed on January 28 when a Reddit-fuelled frenzy pumped ludicrous amounts of money into the cryptocurrency token.
Interest in dogecoin was further fuelled by SpaceX and Tesla CEO Elon Musk endorsing the token in a series of tweets.
The crypto even endorsed by rapper Snoop Dogg and Kiss bassist Gene Simmons.
The South African billionaire went as far as to claim he had bought some DOGE for his ninth-month-old son, X Æ A-12, so that he too could be a “toddler hodler”.
The term “hodl” is popularly used in the cryptocurrency circles to describe someone holding onto an asset rather than selling it.
And yet, Mr Musk appears to have changed his tune, tweeting on February 14, the token was being held back by a lack of trading.
He tweeted: “If major Dogecoin holders sell most of their coins, it will get my full support.
“Too much concentration is the only real issue imo.”
In a follow-up tweet, he said: “I will literally pay actual $ if they just void their accounts.”
An analysis of digital wallets has recently revealed 25 percent of all dogecoin are held by just 19 wallets.
And more than 36 billion of the 113 billion tokens that have been mined for far are being held by one person.
Dogecoin price tracker: Track dogecoin’s latest price.
You can track dogecoin’s volatile prices in the embedded tacker above, courtesy of Nomics.
Nomics is a US-based cryptoasset company that tracks a wide variety of tokens, from bitcoin (BTC) and ethereum (ETH) to sushi (SUSHI) and filecoin (FIL).
As of 2.37pm GMT on February 15, DOGE is trading for £0.046 ($0.063538), according to the latest Nomics data.
The token is in the green, trading at an increase of 12.5 percent on the last 24 hours.
Monday morning, however, saw some of the token’s lowest prices in weeks, with DOGE dropping as low as £0.036.
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Dogecoin was created in 2013 as a joke by co-creators Jackson Palmer and Billy Markus.
The virtual token launched on December 6, based on the bitcoin codebase and forked from litecoin.
Unlike bitcoin, however, DOGE was created without a limit on how many tokens can be mined.
BTC, for comparison, has a hardcoded supply limit of 21 million.
Crypto analysts estimate miners will hit this limit by 2140, although the computer calculations needed to mine all blocks might make it very hard if not virtually impossible to reach.
DOGE’s mining process is also slightly different to bitcoins.
For each block that is broken down, 10,000 DOGE tokens are released as rewards.
Mining difficulty is also adjusted after each consecutive block, unlike BTC, which adjusts every 2,016 blocks.
DOGE transactions are also faster and cheaper than BTC – one minute compared to BTC’s 10 minutes.
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