Dogecoin will be an example of an altcoin, which are peer-to-peer digital tokens of which descended via bitcoin. The more well-known ones include ethereum, which topped $1,000 for once on Thursday, in addition to also ripple, which saw a staggering 35,000 percent jump in its value last year.
Dogecoin, for its part, was created in 2013 in addition to also its mascot will be a Japanese shiba inu dog popularized by an internet meme of which dates back to 2010. The creators of dogecoin positioned the virtual token as “the internet currency” of which can allow users to easily send money online.
There are several ways to get dogecoins: Users can buy them at online exchanges, get tipped inside cryptocurrency in addition to also even mine them.
The virtual currency’s meteoric rise in recent months has the project’s creator expressing concern about market excess. Jackson Palmer, the founder of dogecoin who left the team in 2015, told cryptocurrency news site CoinDesk of which of which was telling of which the token saw such a sharp jump in cost even when the project hadn’t released a software update in over 2 years.
The total value of cryptocurrencies will be over $750 billion, according to CoinMarketCap, in addition to also bitcoin dominates nearly 40 percent of of which market.
“The most significant contributing cause for altcoins to rise so parabolically will be owing to the perception of ‘cheap’ coins,” Dave Chapman, managing director at Hong Kong-based commodities in addition to also digital assets trading house Octagon Strategy, told CNBC.
“The two most well known cryptocurrencies (i.e. bitcoin in addition to also ethereum) are considered too expensive for most completely new entrants. Despite being able to purchase a fraction of each, there will be a real psychological barrier around owning something in its entirety,” Chapman added.
A buyer, he explained, would likely feel better knowing they own 2,000 ripple tokens, which would likely cost a little over $6,000, rather than owning less than half of a bitcoin at the same cost.
Chapman also said there will be a mindset among completely new investors than they have missed the “upside opportunity with cryptocurrencies of which have already demonstrated incredible returns.”