DogeCoin: Everything you need to know

A meme currency now valued in billions of dollars

Back in 2013, Dogecoin started as a meme cryptocurrency. This week Dogecoin's value stands at $34 billion.

In 24 hours, Dogecoin jumped 112.89 per cent, according to Coinbase. Wth the value of the cryptocurrency rising to around 30 cents just two days after it hit the value of 10 cents.

This jump happened after billionaire Elon Musk took to Twitter to share a painting of a famous Spanish artist, except he changed the title of the artwork. The artwork titled "Dog barking at the moon" was changed to "Doge barking at the moon" in reference to Dogecoin.

This is not the first time Musk has tweeted about the cryptocurrency. In fact, he happens to be one of the most ardent supporters of the cryptocurrency, with his regular tweets.

What is Dogecoin?

It was launched in 2013 as a joke by Billy Markus and Jackson Palmer. Based on a trending dog meme at the time, the cryptocurrency was never meant to be serious and was being used as a joke to trade. But seems like investors missed out on the joke and currently the value of the dogecoin stands in billions.

Also Read | Dogecoin records its biggest jump, netizens react

How can it be used?

Dogecoin can be used on any platform that supports it for any goods and services. It can also be used to trade fiat currencies like the US dollar. It's value is volatile, like any other cryptocurrency, since it has no government backing.

How can it be purchased?

It can be purchased at any cryptocurrency exchange platform like Coinbase, Kraken, or Robinhood. One must have a cryptocurrency wallet, which can be made/accessed on these platforms.

To buy the cryptocurrency in small quantities, faucets - websites that dole out a small amount of free cryptocurrencies - can be a good option. For this you just have to click a button and put a captcha code every three hours, in order to earn Dogecoins.

How is it different from Bitcoin?

Bitcoin's maximum possible number is fixed at 21 million (a figure that is estimated to be reached by 2040). Dogecoin, on the other hand, does not have an upper limit, and there are already more than 100 billion in existence.

What is the reason behind Dogecoin's recent surge?

The biggest reason behinf Dogecoin's surge this week is the same as the reason behind Bitcoin and Etherem's surge - listing of Coinbase, the most popular virtual currency exchange, on Nasadaq,

After going public, Coinbase’s market cap briefly hit $100 billion on Wednesday, valuing Bitcoin and Etherem at $64,000 and $2,500, respectively. Dogecoin is said to be a part of this frenzy.

Also Read | Elon Musk's cryptic tweet on Dogecoin sparks meme fest, 'Doge Barking at the Moon'

Another reason behind its current success is said to be a Reddit group called SatoshiStreetBets, where members built up an enthusiasm for the cryptocurrency in a manner similar that led to the rise of GameStop earlier this year. The group’s name refers to Satoshi Nakamoto, the screen name of the person or group of persons behind Bitcoin, according to a report by the Indian Express.

These are all reasons in addition to Elon Musk's tweets and support for the cyrptocurrency as seen on his Twitter.

The current market capitalisation of Dogecoin is about $16.9 billion, as per CNBC.