Context: The value of Dogecoin value, a virtual currencies Bitcoin and Ethereum, has risen phenomenally recently. The main reason believed to be behind Dogecoin’s meteoric surge is the same that has propelled the value of Bitcoin and Etherem– recent listing of Coinbase, the most popular virtual currency exchange in the US.
- Dogecoin was initially created as a faster but “fun” alternative to Bitcoin by software engineers Billy Markus and Jackson Palmer and was never meant to be a successful cryptocurrency.
- Unlike Bitcoins, whose maximum possible number is fixed at 21 million (a figure that is estimated to be reached by 2040), Dogecoin numbers do not have an upper limit, and there are already more than 100 billion in existence.
- Dogecoin can be exchanged for goods and services at platforms where it is accepted.
- It can also be traded for fiat currencies like the US dollar.
- The value of Dogecoin is volatile like other cryptocurrencies as it is not backed by any government.
How to buy Dogecoin?
- Cryptocurrency exchange platforms provide the most convenient ways to buy Dogecoin.
- Besides this, Dogecoin can also be mined using powerful computer setups.
Why some are concerned?
- Without having any intrinsic value such as land or gold, cryptocurrencies are considered highly volatile, and may crash as fast as they can rise, experts say, making them susceptible to sudden scares as well as manipulation by small groups who often hold large numbers of the virtual currency in circulation.