Bitcoin have both been hot investments over the past 12 months, surging 650% and 18,600%, respectively, at recent prices.
In 2013, Adobe employee Jackson Palmer referenced the popular doge meme in a tweet: “Investing in Dogecoin, pretty sure it’s the next big thing.” At the time, Dogecoin didn’t exist, and his comment simply poked fun at the growing hype surrounding Bitcoin.
Think of them as auditors: As Dogecoin transactions occur, miners group those transactions into blocks and validate each block through an energy-intensive process known as proof of work.
In other words, as long as miners continue to build the blockchain, more Dogecoin will continue to wink into existence.
In fact, each time a block is verified, the miner receives a fixed reward of 10,000 Dogecoin tokens.
In economics, when demand is held constant, the price of an asset goes down as the supply goes up.
In this case, the economics at work are similar to those that govern the price of gold.
Earlier in 2021, Musk posted a picture of a fictional magazine titled Dogue, a pun based on the popular publication Vogue.
As a final thought, consider this: If the developers of Dogecoin didn’t take it seriously, there’s no reason for anyone else to take it seriously, either.