Connect with us

Cryptocurrency

How Dogecoin Rose From Meme to Major Cryptocurrency

Published

on

Cryptocurrency enthusiasts and blockchain supporters see serious potential for top coins like Bitcoin and etherthat could turn traditional financial systems upside down and impact a wide variety of industries.

But there is almost nothing serious about it Dogecoin (CRYPTO: DOGE), a so-called “joke” coin inspired by a meme of a Shiba Inu dog. In fact, there is one serious detail: the price gains Dogecoin has seen so far in 2021. Dogecoin started the year at less than a dime a coin before skyrocketing in late January as a by-product of the meme stock trend that had an impact GameStop, AMC, and other.

But Dogecoin hasn’t given in: it hit a high of over $ 0.73 in May during the recent bull run. While the price of Dogecoin is currently off this mark by more than 50%, the price is still around 60 times higher than it was on 1. Here’s a quick look at how Dogecoin became much more than just a meme.

Image source: Getty Images.

A new breed

Dogecoin’s origins are a joke. Inspired by the famous Doge meme and the early rise of a burgeoning Bitcoin in 2013, Adobe Software engineer Jackson Palmer posited the idea of ​​Dogecoin as satire. Palmer’s idea was put into practice when he worked with IBM Software engineer Billy Markus shortly afterwards with the Dogecoin code, which is based on the existing crypto currency Litecoin.

Dogecoin investors hailed the coin’s goofy and unusual origins, with community members raising money to sponsor a NASCAR vehicle and send the Jamaican bobsleigh team to the 2014 Winter Olympics. In the years that followed, Dogecoin largely languished on the sidelines of the crypto market with a price at a fraction of a cent. After all, it was meant to be a joke. It would never really be worth anything, would it?

In the summer of 2020, Dogecoin began to gain more attention on social media, including from Tesla and SpaceX CEO Elon Musk and YouTube star Jake Paul. Attempts to raise the price to $ 1 a coin didn’t hit, but the price began to gradually increase towards the end of the year – although it was mostly still below a penny per coin.

The dog days end

Amid the January meme stock fiasco, with the social media-led buying spree driving up GameStop, AMC, and other stocks, investors began looking for the next stock to buy cheap and try to get up surprising new heights to rise. In just over a week, the price of Dogecoin jumped from under a dime to nearly $ 0.08 per coin, before settling at $ 0.05 for most of the spring.

After that it just got wilder. Dogecoin rose to $ 0.40 per coin in April before pulling back, but then climbed back to an all-time high of $ 0.73 in early May. The broader crypto market has since declined, in part because Tesla stopped making bitcoin payments for its cars due to the environmental impact of cryptocurrency mining. Even at roughly half its all-time high, Dogecoin is still up roughly 6,000% from the beginning of the year – which translates into a market capitalization of around $ 44 billion.

Dogecoin still has its doubters and appears to be more prone to the whims of social media sentiment and influencers than other, less volatile cryptocurrencies. But there are also more true believers than ever, including Musk – who works with Dogecoin developers – and billionaire Mark Cuban, whose Dallas Mavericks NBA team accepts DOGE for goods purchases. It also has copycat coins, like Shiba Inu.

Even so, despite the significant and rapid increase in price, it is difficult to call Dogecoin a serious investment. It’s more like a roller coaster ride: buckle up and enjoy the ride and pray that you won’t end up feeling sick.

This article represents the opinion of the author who may disagree with the “official” recommending position of a world class Motley Fool advisory service. We are colorful! Questioning an investment thesis – even one of our own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer.

Cryptocurrency

All You Need To Know To Decide If This Crypto Is Worth the Investment

Published

on

BackyardProduction / iStock.com

Cryptocurrencies have become increasingly popular lately and this trend shows no signs of slowing down. With all the talk about these digital assets, you may be wondering if this is the right time to invest. Before you pull the trigger, however, it’s always a good idea to understand the underlying asset. Cryptocurrency is no exception and is very different from investing in stocks or bonds.

Show Support: It’s not too late to nominate your favorite small business for listing on GOBankingRates – extended until June 5th

Hence, we’re going to cover a popular blockchain technology called Ethereum (ETH). Like many blockchains, Ethereum has a native coin called Ether. Let’s take a closer look at what Ethereum is and whether you should consider investing.

Read: Dogecoin: Is It Worth Investing?

What is ethereum

Ethereum is an open source, decentralized one Blockchain technology. The native coin of Ethereum is called Ether. This coin is one of the largest cryptocurrencies by market capitalization, second only to Bitcoin (BTC). Although Ether has a smaller market capitalization than Bitcoin, Ethereum is the most widely used blockchain.

See: What Is Chainlink And Why Is It Important In The Cryptocurrency World?

With Ethereum, it is important to understand that it is not the same as Bitcoin. While Bitcoin’s purpose is primarily to be a digital currency, Ethereum is much broader. In fact, Ethereum is an open source operating system and computing platform. It also supports distributed applications (dApps) and smart contracts.

Another important aspect of Ethereum is that it allows for decentralized funding, which is an important part of how the system works. Since the system is inherently decentralized, there is not a single entity that controls it or the value of the ether.

More: How the IRS Taxes Cryptocurrency – and the Loophole That Can Lower Your Tax Bill

What is Ethereum worth?

As with many cryptocurrencies, the price of ether has fluctuated significantly since its introduction in 2015. At the time, the price was around $ 1 and stayed there for several months. The price hit $ 1,358 in January 2018, the highest price ever. The price began to fall, as did the price of many cryptocurrencies; Ether bottomed at $ 83 in December 2018.

The story goes on

The price has ebbed and flowed since then, but has increased overall. At the beginning of April 2020, the price was around $ 140; and on May 18, it’s around $ 3,349, according to Coindesk. That’s a pretty sharp increase in just over a year.

Read: Breaking Down The Basics Of Cryptocurrency

Should you invest in Ethereum?

If you decide to invest in Ether (and therefore Ethereum), the first thing you should ask yourself is why you are investing. Although the price of the coin has increased significantly over the past year, it can be extremely volatile. So if you buy ether hoping the price will go up, you can get frustrated.

On the other hand, the Etherum blockchain can be used for many different applications, said Tally Greenberg, Head of Business Development at Allnodes. “Ether is the cryptocurrency required for any transaction carried out on Ethereum, a blockchain network of applications. A blockchain, on the other hand, is a technology with unlimited potential. It doesn’t rest on Ethereum alone and can be used to make a difference with or without cryptocurrencies in our future. “

See: 10 Best Cryptocurrencies To Invest In 2021

Sam Bretzmann, the owner of Block link, agrees with this feeling. “The difference is that instead of investing in individual projects that make it or not, you can invest in the infrastructure. So you can think about going back to 1999 and instead of trying to see which emerging companies will survive, you can just pick ‘the internet’ and invest in it. “

This article is part of GOBankingRates’ ‘Economy Explained’ series to help readers navigate the complexities of our financial system.

More from GOBankingRates

Last updated: May 18, 2021

This article originally appeared on GOBankingRates.com: Ethereum: Everything You Need To Know To Decide If This Crypto Is Worth Investing

Continue Reading

Cryptocurrency

Bitcoin Taproot upgrade: what it means

Published

on

The first Bitcoin upgrade in four years has just been approved by miners around the world. It’s a rare moment of consensus among stakeholders, and crypto experts tell CNBC that it’s a pretty big deal for the world’s most popular cryptocurrency.

The upgrade is called Taproot and is scheduled to take effect in November. If so, it will mean more privacy and efficiency in transactions – and most importantly, it will unlock the potential for smart contracts, a key feature of its blockchain technology that eliminates middlemen in even the most complex transactions.

“Taproot is important because it opens up a variety of opportunities for entrepreneurs interested in expanding the uses of Bitcoin,” said Alyse Killeen, founder and managing partner of Bitcoin-focused venture company Stillmark.

Unlike the 2017 Bitcoin upgrade – dubbed the “last civil war” due to the controversial ideological divide that separates followers – Taproot has near universal support, in part because those changes are fairly incremental improvements to the code.

what changes

Bitcoin’s overhaul has to do with digital signatures, which you can think of as the fingerprint a person leaves on every transaction.

At the moment, the cryptocurrency uses the so-called “Elliptic Curve Digital Signature Algorithm”, which is created from the private key that controls a Bitcoin wallet and ensures that Bitcoin can only be issued by the rightful owner. According to Alejandro De La Torre, vice president of the large mining pool Poolin, headquartered in Hong Kong, Taproot will switch to so-called Schnorr signatures, which make transactions with multiple signatures essentially illegible.

In practice, this means more privacy as your keys are not exposed as much on the chain. “You can hide a little better who you are, what is good,” said Brandon Arvanaghi, previously a security engineer at the Gemini crypto exchange.

It does not lead to greater anonymity of your individual Bitcoin address in the public blockchain, but it makes simple transactions indistinguishable from those that are more complex and consist of several signatures.

These pimped up signatures are also a tipping point for smart contracts, which are self-executing agreements that live on the blockchain. Smart contracts can, in theory, be used for virtually any type of transaction, from paying your rental monthly to registering your vehicle.

Taproot makes smart contracts cheaper and smaller in terms of space requirements on the blockchain. Killeen says this improved functionality and efficiency offers “overwhelming potential”.

Currently, smart contracts can be created on both Bitcoin’s core protocol layer and the Lightning Network, a Bitcoin-based payment platform that enables instant transactions. Smart contracts executed in the Lightning Network usually lead to faster and cheaper transactions.

“Lightning transactions can be fractions of a cent … while a bitcoin transaction can be much more expensive at the core protocol level,” explained Killeen.

Developers have already started building on Lightning in anticipation of the upgrade that will enable very specific contracts.

“The most important thing for Taproot is … smart contracts,” said Fred Thiel, CEO of cryptocurrency mining specialist Marathon Digital Holdings. “It’s already the main driver of innovation in the Ethereum network. Smart contracts essentially give you the ability to really build applications and businesses on top of the blockchain.”

As more and more programmers build smart contracts on top of Bitcoin’s blockchain, there is also the potential for Bitcoin to become more of an actor in the world of DeFi, or decentralized finance, a term used to describe financial applications that exclude the middleman should.

Today, Ethereum dominates as the blockchain of choice for these apps, also known as “Dapps”.

Why the wait

Although the Bitcoin community has agreed to the upgrade, the rollout itself is not expected to take place until November. Doing a lot of testing in advance reduces the chance that something will go wrong during an upgrade.

“Upgrades allow the – extremely remote – possibility of a bug entering the system that destroys trust in the entire cryptocurrency system and effectively obliterates it – a ‘self-inflicted wound’ if you will,” said Jason Deane, analyst at Quantum economy.

Deane says this is why upgrade processes are so carefully tested, retested, and verified over very long periods of time before they are deployed.

Many also remember the disastrous migration of 2013 when a failed upgrade resulted in Bitcoin being temporarily split in half.

“You don’t want different clients or miners to be out of sync in the protocol. That’s how catastrophic things happen, ”Nic Carter, founding partner at Castle Island Ventures, told CNBC. “Because we don’t want a repetition in 2013, we have these extremely long lead times.”

Continue Reading

Cryptocurrency

Top Cryptocurrencies to Buy as Investment During the Weekend, June 2021

Published

on

Watch out for these top cryptocurrencies on the weekend

Cryptocurrencies continue to make headlines with their prices rising and sometimes falling. While the bullish crypto market is helping investors make profits, the market downturn opens up several new opportunities for investment.

If you are planning on investing in cryptocurrencies anytime soon, keep a close eye on these top cryptocurrencies during the weekend. To help you get started with crypto investing, we’ve created a guide for you here.

1st star (XLM)

Stellar has grown in popularity in the crypto community because it serves a niche need. It works like PayPal from cryptocurrency networks, bridging the gap between banks and blockchain networks. Stellar can exchange any currency and enable cross-channel trading at a cheaper and faster rate than traditional banks.

2nd chain link (LINK)

Chainlink is an affordable cryptocurrency that attracts a lot of trading activity in the market. While it is steadily increasing in value, there is also room for potential growth. One of the USPs is the fact that Chainlink is a low risk, low value investment, but the price is not low enough to make it a penny stock.

3. Litecoin (LTC)

Litecoin entered the crypto market around the same time as Bitcoin, but did not reach its maximum growth potential as quickly as Bitcoin. However, there is one thing that Litecoin does better than Bitcoin, which completes transactions four times faster. So fast that in 2017 it was the first cryptocurrency to complete a Lightning Network transaction. If the company plans to use this speed for all of its transactions in the future, its value will increase dramatically.

4. Bitcoin (BTC)

Bitcoin has been a part of the crypto market for so long that it is now synonymous with the word cryptocurrency. Bitcoin doesn’t need an introduction as everyone knows about its price, market capitalization and volume, which are higher than any other crypto coin. With more than a thousand cryptocurrencies in the market, Bitcoin still holds 40% of the total crypto market cap. Many companies are now also accepting Bitcoin, which makes this an easy investment decision.

5. Ethereum (ETH)

What a lot of people don’t know is that Ethereum is actually a crypto network and Ether is the token. Ethereum serves as a network for developers to create other cryptocurrencies. While Ethers is nowhere near Bitcoin in value, it is still the second largest crypto in value. Its unique technology puts Ethereum in the spotlight when there is a conversation about cryptocurrencies with a utility.

6. Binance coin

Binance Coin was launched by one of the largest crypto exchanges, Binance. So what investors need to understand is that Binance Coin will hold stronger as long as there is activity on the Binance exchange. In 2017, the Binance coin peaked and stayed on its uptrend despite the market volatility.

7. Cardano (ADA)

Cardano’s technology has always been its unique selling point. This network uses less energy to complete transactions, while also being faster and cheaper. Cardano is also more adaptable to the dynamic market and more secure.

8. Tether (USDT)

Tether is a stable coin. Its value is pegged to the US dollar. For every unit of tether there is one dollar in the Federal Reserve Bank. So if you are an investor looking to use cryptocurrencies for transactions, Tether is your best option.

9. Polkadot (DOT)

Polkadot’s philosophy is to reward real investors who don’t trade crypto in order to make quick money. Polkadot investors also participate in the company’s decision-making process about network fees, network upgrades, and the establishment and removal of parachains. Interestingly, Tether was made by the same people who made Ethereum.

10. Waviness (XRP)

Ripple is the company and XRP is its token. XRP has a utility that makes it an investor favorite. It enables international transactions that can be completed in seconds instead of the long hours that a bank normally takes. Ripple’s network holds contracts with major banks around the world, which makes the adoption of this crypto coin easier.

Share this article

Do the sharing thing

Continue Reading
Advertisement

Trending