Dogecoin news and technical analysis - Cryptocurrency trading strategy

Dogecoin news and technical analysis – Cryptocurrency trading strategy

welcome to another episode of crypto riot the show that takes a magical mystery out of cryptocurrencies and amateur investing I'm your host David Haye and in today's episode I'll review the world's thirty ninth largest cryptocurrency it has one of the largest communities on the internet it was one of the very first alt coins in existence created all the way back in 2013 it is of course dogecoin what started out as more of an internet prank has turned into a very large and successful cryptocurrency with a market cap of over 220 million dollars so in today's episode we'll look at the history what this coin actually does and I'll make some predictions for the future stay tuned we'll be right back all right dogecoin has a very interesting history back in 2013 it was created by a guy called Billy Marcus Billy was really interested in cryptocurrencies but didn't like how Bitcoin was so associated with the Silk Road so he wanted to make a more functional and more fun cryptocurrency that could be used by the wider community and I couldn't find any pictures of Billy Marcus on the Internet so for this example we'll just say he's Nicolas Cage and then there was this other dude and he was working over at Adobe in Sydney Australia and his name was Jackson Palmer anyway he saw Billy Marcus's idea and code and he said you know what this is probably gonna work so he was like yo Billy I got this idea let's promote this coin and see what's going on and then and that's when another student from Front Valley Ranch Community College said yo this is a good idea let's make this work wow that just blew my mind so dogecoin was created and it was really based as more of a joke and more of a light-hearted attempt at cryptocurrency so they chose an Inuit dog that had been a used a lot in memes for their logo and because this was really the very early stages of cryptocurrencies and and this was all in late 2013 this cryptocurrency which was really started more as a joke started to actually grow legs and it became really popular and it started to gain traction it started to gain in value so the start of 2014 the price of dogecoin shoots up everybody's really keen on the cryptocurrency and of course after that the price of Bitcoin crashes and when the price of Bitcoin crashes it takes all of the other cryptocurrencies with it and for a couple years everybody just completely forgot about crypto and the scene was sort of dead and come early January 2017 the price of Bitcoin starts to bounce back the crypto currency start to find their purpose again and the value starts to shoot up dogecoins market cap now sits at two hundred and twenty million dollars and because this coin has been around for so long it has one of the most proven track records and one of the largest community bases if you go on reddit right now there's an over 66,000 members on the forum there it's very active and it's also sort of a fun and interesting community at a fun community it doesn't take itself too seriously and at the same time while it is this fun community it has created this legitimate cryptocurrency that works and if you do need to send micro transactions and these little gifts which is what it's used for and a lot of internet forums if you wanted to transfer let's say five or ten cents of value for somebody that had written a particularly good blog post it's very good it's quick and it allows for that exchange in us and it has allowed for that exchange for the last couple of years the other main difference between dogecoin and Bitcoin is the number of coins in circulation with dogecoin the price is one-fifth of one cent and that has gone up dramatically since even 12 months ago and the reason for this low valuation is that by 2015 between the original distribution and the mining there were over a hundred billion coins in circulation and that number continues to increase each year as more coins of mind and with so many tokens in circulation that guarantees that the price is always going to be very low compared with bitcoins limited release so let's get into some charts and look at a little bit more about what's going on at dogecoin in this chart we can see when dogecoin launched at the end of 2013 it immediately shot up and this was where we had all of the initial interest after Bitcoin crashed we saw the price fall back down and over here you can see that the price in u.s. dollars was about one one tenth of what it was today if we fast-forward to January we can see that the price started to pick up again and while it the price has gone down from its high which was sitting right here around a fifth of one cent and from its high of around a third of a cent it has gone down to around one-fifth of a cent keep in mind that one of the reasons that this coin is constantly going to be moving around as so many new coins are coming in circulation so it's that the coins not worth a lot to start with Plus this a lot of new coins coming out in the mining process every day so there's a constant inflationary mechanism with these crypto currencies to keep the network secure and to keep new coins in circulation and so you can see that number here over on the wiki page you can see the information about the block schedule you can also look at some of the fundraising opportunities that doge coins been involved in because they're a little bit more lighthearted and a little funny aren't they sponsored the Jamaican bobsled team in the Winter Olympics back in 2014 they've done water program Dutch for wog water program they've also been involved with NASCAR so the community's done a lot of outreach and they've been a great way for people that haven't been initiated into cryptocurrency to get used to the idea and because the fees are very low and because the amounts are very low it's a great tipping system on the internet and it has a few competitors like red coin and I'll talk about red coin later but for micro transactions on the web this community is great and that's a very functional coin if we head over to the reddit forum you'll see that the number of members here is 80,000 and there's 300 online right now and a lot of it's fun but there's a lot of serious talk as well about the actual mechanics of the coin and about you know future directions and things like that and it's some definitely out of all the cryptocurrency as I've looked at it's the most active community in the active most active forum online outside of Bitcoin so while dogecoin does have some competitors in microtransactions it does have one thing going for it that the other cryptocurrencies haven't it's been around for so long and it has such a strong community because it's used widely on Reddit and Twitter and twitch as a donations platform and because it does have those low fees I see that this will be a very functional currency even though it is more of a joke and it hasn't always been taken as seriously as I think it should in the future I think the price will continue to increase although the increases I think will be a little bit slower because there's so many coins in circulation and so many new coins coming on the market that are being mined so for that reason I think that the future for dogecoin looks good I think the future for its competitors look good as well and I think that the price will continue to increase although it won't increase as quickly as some of the other alt coins simply because the number of coins in circulation is so high so guys thanks for watching I hope you enjoyed this episode until next time I'll see you later following me every time somebody liked one of my videos I water these plants every time somebody subscribes to my channel I give them the trees every time somebody shares a video on Facebook so if you like gardening dogs America or cryptocurrency you should support this channel [Applause]


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