If Dogecoin Hit this Level, it Will be on a Massive 70% Free Fall


The price of dogecoin fell sharply Thursday morning, sliding below 40 cents per coin

Cryptocurrency prices today continued the downward trend with Bitcoin falling below the US$30,000 level. Bitcoin dropped the most since January as the rout in financial markets deepened in the wake of increasing concern of recession. The global crypto market’s value today slipped over 9.11% in the past 24 hours to US$1.22 trillion. The price of dogecoin fell sharply Thursday morning, sliding below 40 cents per coin, after Tesla CEO and crypto booster Elon Musk announced that the automaker was suspending the use of bitcoin in payments over environmental concerns.

 

What Is Dogecoin?

Dogecoin (DOGE) is based on the popular “Doge” Internet meme and features a Shiba Inu on its logo. The open-source digital currency was created by Billy Markus from Portland, Oregon, and Jackson Palmer from Sydney, Australia, and was forked from Litecoin in December 2013. Dogecoin’s creators envisaged it as a fun, light-hearted cryptocurrency that would have greater appeal beyond the core Bitcoin audience since it was based on a dog meme. Tesla CEO Elon Musk posted several tweets on social media that Dogecoin is his favourite coin.

 

How Do You Mine Dogecoin?

Dogecoin differs from Bitcoin’s proof-of-work protocol in several ways, one of which is by using Scrypt technology. The altcoin also has a block time of 1 minute, and the total supply is uncapped, which means that there is no limit to the number of Dogecoin that can be mined. You can mine Dogecoin either solo or by joining a mining pool. A Doge miner can mine the digital currency on Windows, Mac, or Linux, and with a GPU. As of 2014, you can also mine Litecoin in the same process as mining Dogecoin, as the processes were merged.

 

Why is Dogecoin going down?

Over the past 24 hours, the price of Dogecoin fell from a high price of US$0.28 to a low point of US$0.07. A significant drop like this in the Dogecoin price hasn’t been seen in months. Over the past couple of days, the whole crypto market crashed as Bitcoin went tumbling down. The reason behind this sudden market crash and Dogecoin falling was a direct result of China’s continued crackdown on Bitcoin mining and cryptocurrency trading in the country.

As per a report by the Wall Street Journal, China’s Central Bank has ordered the major banks in the country to throttle cryptocurrency trading. The government of China has also been cracking down on large Bitcoin mining farms. As per a report by The Motley Fool, China has also shut down the mining province of Sichuan, which contributed to the majority of China’s Bitcoin mining capacity. As China continues on its Bitcoin crackdown and the mining rates drop, the Bitcoin network keeps getting more congested, which directly leads to a crash in price, as the transactions cannot go through quickly. Moreover, China’s continued ban and the falling price of Bitcoin have scared many investors who have withdrawn their investments in order to not lose any more money.

 

What is Dogecoin Used For?

At first glance, Dogecoin may appear to be a memecoin and not much more. However, if you dig a little deeper, you’ll note that the cryptocurrency has various use cases which could help Dogecoin prosper in the years ahead. Let’s dive in and explore four of the coin’s most popular use cases:

 

Payment Method

Dogecoin was initially designed to be used as a method of payment – and it has maintained that designation since launching in 2013. As noted earlier, the transaction fees when sending Dogecoin are relatively low, which makes it ideal for low-cost transfers. Furthermore, companies such as Tesla, GameStop, AMC, and Nordstrom have all accepted DOGE as a payment method in the past due to its popularity on social media.

 

Speculation

Whether you’re investing in Dogecoin or purchasing the best metaverse coins, there’s always an element of speculation ingrained in the process. Speculative investors have long admired Dogecoin due to the remarkable returns it has shown in the past. Notably, Dogecoin’s rapid price rise in 2021 is of great importance to investors, with many discussions on the Dogecoin subreddit hoping for a similar situation in the future.

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