What Is Dogecoin? Cryptocurrency Backed By Elon Musk

Dogecoin: The CEO of Tesla and world's richest man at this point, Elon Musk came back from his rather short break from social media.

The first thing he did was tweet about a cryptocurrency named Dogecoin. 

Musk tweeted a photo of a SpaceX rocket shooting towards the Moon and followed it by a tweet which said "Doge". This made brought a massive surge in the price of Dogecoin. Reportedly, the prices of the cryptocurrency shot up to 44% just after Elon Musk's tweet.

This was followed by several tweets on social media where users came up with imaginative memes on Elon Musk and Dogecoin. He himself posted an iconic scene from the film Lion King only his face was morphed on Simba has he was seen holding the 'Doge' 

Doge

— Elon Musk (@elonmusk) February 4, 2021

ur welcome pic.twitter.com/e2KF57KLxb

— Elon Musk (@elonmusk) February 4, 2021

Here's what we know about Dogecoin: 

• The cryptocurrency is based on a popular meme with a dog named 'Doge'. It uses that logo of the same Shiba Inu on its logo. 
• According to a report, the value of this cryptocurrency has increased by 600% in the last 24 hours. 
• The massive surge is brought about by Elon Musk and SatoshiStreetBets on Reddit and TikTok. 
• The volatile nature of the cryptocurrency makes it hardly a threat. The investors betting their money on Dogecoin are possibly doing it just for the sake of pumping the value of cryptocurrency. 
• The cryptocurrency is currently valued at less than a dollar but like usual Reddit investment events, the investors are trying to make it reach the value of 1 dollar. 
• It is said that the workings of Dogecoin are just the same as Bitcoin. But some have pointed out that Dogecoin works of Scrypt technology which makes it different from bitcoin. 
• As cryptocurrency is obtained or "mined" by solving the cryptography equations, Scryot helps improve the process by making it password-based key derivation functions (KDF). 
• It was introduced by Billy Markus from Oregon and Jackson Palmer Syndey. They lifted the new cryptocurrency from another one named Litcoin in December 2013. 
• They reportedly wanted to make a cryptocurrency which "fun and light-hearted". Hence the crytocurrency with Shina Inu dog logo came about.