It’s not surprising to see the market share of a cryptocurrency like free Dogecoin soaring thousands of times when the richest man on the earth brings it in limelight and discusses its prospect. Dogecoin is one of the cryptocurrencies which became popular recently after Elon Musk tweeting about it and his company Tesla’s announcement of investing $1.5 billion in cryptocurrency. Not only Dogecoin but also the value of other popular cryptocurrencies are also rising rapidly following this trend. The rally has really come as excitement for thousands of versions of digital money, which were dismissed as little more than online Beanie Babies caught in a speculative bubble. You can earn free dogecoin by posting on Reddit Community, giveaways, completing paid surveys, playing games, watching videos, referring friends, etc. 

What are Cryptocurrency and Dogecoin? 

Cryptocurrency is a digital currency that is designed to work as a medium of exchange like fiat currency to buy goods and services. All the transactions take place virtually and recorded in an online ledger called blockchain, a computerized database using strong cryptography to make the transaction records secure and control the generation or producing additional coins and to examine the transfer of coin ownership. There is no controlling authority of this currency, it uses decentralized control working through distributed ledger technology. It appeared first in 2009 after releasing the rules and software of bitcoin by a disguised person named Satoshi Nakamoto. 

Dogecoin is a form of cryptocurrency that can be used with a digital wallet on your computer, smartphone, or website and for paying for your goods and services. Using free Dogecoin is fun, the use of the currency is growing rapidly most probably for its special feature tipping, a more meaningful “Like”, that can be used all over the internet. Mr. Billy Markus built Dogecoin in 2013 with the image of a Shiba Inu dog as its logo. It was developed seemingly as a joke based on Litecoin technology. In late 2017, it participated in the cryptocurrency bubble that increased its value significantly. Bursting the bubble in 2018 caused it to lose much of its value but the currency still has a core supporter.  

Recently, Dogecoin touched a record in a flash after the world’s richest man billionaire Elon Musk tweeted about it. It climbed to a pinnacle of about 8.2 cents and a market capitalization of $10.5 billion. Very soon, it entered the top ten cryptocurrency list by market value after Tesla disclosed its investment in cryptocurrency. The biggest players in the cryptocurrency world, Bitcoin and Ether, scaled fresh peaks in recent weeks. Musk tweeted multiple times about Dogecoin recently. Snoop Dogg and Kiss singer Gene Simmons joined Musk in posting tweets backing Dogecoin. They were seen actively promoting Dogecoin to their followers and announcing their own investment in cryptocurrencies. 

Why does Elon Musk love Dogecoin? 

But why Elon Musk invested in cryptocurrency through his business Tesla, why does he love Dogecoin? Is it all about the prospect he found in cryptocurrency or is he trying to accomplish any other goals? Behind his investment, the following issues may be grabbed his attention – 

  1. He might find cryptocurrencies such as Bitcoin, Ether, and free Dogecoin as the future currency, and investing in this digital currency now may produce a greater return in the future. 
  2. He might like the idea of eliminating banks from the currency transaction process since these third parties reduce the value of the money over time via inflation. 
  3. The blockchain technology working behind the transactions to facilitate secured systems might be something he valued most to recognize cryptocurrency and make a huge investment in this sector. 
  4. He loves it may be because the currency goes up in value and has no interest in the currencies’ long-term acceptance as a way to move money.

Explaining the other perspective: 

Some experts explained Elon Musk’s investment in another way and tried to demonstrate why he loves Dogecoin: 

  1. It was a social coordination game with no connection to the business of an actual company. They got together online, discussed or promoted the currency, bought it, and increased the value of the market share of it. 
  2. Tesla Inc.’s stock trades trailing earnings might be relevant here behind his preference to buy such a huge amount of cryptocurrency. 
  3. Musk is trying to pave the way to use cryptocurrency like fiat currency adopting it institutionally and announcing that Tesla will trade cars for Bitcoin. 
  4. Maybe he wanted media attention to get a higher stock price of Tesla.
  5. He might find buying cryptocurrency as a hedging tool against any collapse of fiat inflation, or something of that nature;
  6. Maybe he wanted to buy assets of billions of dollars in a liquid anonymous market and then get them to go up just by tweeting about them.                                 

Make investment carefully: 

Cryptocurrencies are not recognized by governments but a lot of businesses started trading their products against various cryptocurrencies. Investing in crypto might be a risky initiative as many investors see them as mere speculation, not real investment. it’s because the currency doesn’t generate any cash flow. So, if you want to make a profit, someone will be needed to pay more for the same currency than you paid. Not just following the trend but investment should be made after a proper judgment of the situation and probable outcome to avoid devastation.