The world of cryptocurrency almost seems like an inside joke that’s somehow gone a bit too far, with people making millions overnight with Bitcoin investments and “mining” these coins using excessive computing power to gain just a small slice of the pie. If you aren’t involved with cryptocurrency directly, it can be a very confusing topic, and many wonder if this is still just a fad, destined to fall into obscurity. But there are new cryptocurrencies being created regularly now, and while some have fizzled out shortly after their creation, some, even ones that were intended to be jokes at first, have gone on to find great success like the Dogecoin.
How Does Cryptocurrency Work?
These cryptocurrencies are derived from something called a blockchain which is essentially a digital ledger system managed across many different computers. The intended purpose of cryptocurrency is that it can be used as a secure online payment method and due to the decentralized nature of blockchains, it’s actually a very secure system and cannot be forged. While these coins can be traded for goods and services, the value of these cryptocurrencies has skyrocketed in recent years, with Bitcoin leading the charge. Due to this astronomical boost in value, the desire to trade these coins overtook the desire to use them as a currency and instead has led to the crypto markets we see today.
What Is Dogecoin?
These coins, emblazoned with the head of a Shiba Inu dog, named after the popular meme doge—pronounced more like “doje” than “dog”—were created as somewhat of a joke by Billy Marcus and Jackson Palmer. The coin really gained traction via the subreddit WallStreetBets where users pledged to help increase the value of the coin, essentially forcing it into a state of mild success. This success has gone from strength to strength, however, as the value of these dogecoins has increased by well over 5000% this year. Some people might not see the risk of holding these currencies for long periods of time as worthwhile and may choose to switch to a safer, slightly more stable cryptocurrency like Bitcoin, using sites like Paxful, where you can trade your DOGE to BTC with other users. But of course, the high-risk, high-reward nature of these more volatile coins has naturally attracted some investors to take a gamble on the cryptocurrency, hoping that these coins continue to follow in the footsteps of their predecessors.
What Is Shiba Inu?
As is the way of things, a newer cryptocurrency was created, specifically to poke fun at Dogecoin itself. Shiba Inu was created by an anonymous person or group known as “Ryoshi” in 2020. This coin, while still being relatively new, has actually gone on to become one of the top 10 cryptocurrencies on the market. The market value of Shiba Inu is over $38 billion, currently trading at around $0.000047 per coin. This might seem like a woefully low value but considering that its original listing price was $0.000000000972 it’s actually gained a significant amount of value. While some will be tempted by these cryptocurrencies, it’s important to note that these coins have no true value and are primarily driven by hype and purchases made by their very vocal communities, so be wary if considering this as an investment opportunity.