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
The price of Bitcoin continued to fall today, dropping below the $30,000 level for the first time since January. The decline in the cryptocurrency market was triggered by the increasing concerns about a potential recession. In the past 24 hours, the value of the global crypto market has dropped by almost 9%.
Dogecoin, which is a cryptocurrency known for its decentralized exchange, fell sharply Thursday after Elon Musk, the CEO of Tesla, announced that the company would stop using bitcoin in payments due to environmental concerns.
What Is Dogecoin?
The creation of dogecoin was carried out by Billy Markus and Jackson Palmer, who are from Oregon and Australia, respectively. The pair conceptualized the cryptocurrency as a fun and light-hearted alternative to Bitcoin. It was created using the open-source software known as the Dogecoin Project. Musk, who is known for his social media presence, stated that he likes Dogecoin.
How Do You Mine Dogecoin?
Unlike Bitcoin’s proof-of-work protocol, dogecoin uses the Scrypt technology. This means that it can be mined with a block time of 1 minute. It also has an uncapped supply, which means that it can be mined with a large number of coins. You can mine it either by joining a mining pool or by mining it yourself. In 2014, it was also possible to mine Litecoin using the same process.
Why is Dogecoin going down?
The price of dogecoin fell from a high of US$0.28 to a low of US$0.07. This was a significant drop in the price of the cryptocurrency, and it didn’t occur in months. The reason for the sudden decline in the dogecoin price was China’s continued crackdown on Bitcoin and other cryptocurrencies trading in the country.
A report by the Wall Street Journal stated that China’s central bank has ordered the country’s major banks to stop taking bets on cryptocurrencies. The government of China also reportedly has been cracking down on Bitcoin mining operations. According to a report by the The Motley Fool, China has reportedly shut down a mining region in Sichuan, which contributed to the country’s massive Bitcoin mining capacity.
Due to the government’s actions, the Bitcoin network gets more congested, which causes the transactions to take longer. Also, the continued ban in China has scared many investors. These individuals have withdrawn their money from the market in order to avoid losing more money.
What is Dogecoin Used For?
Although it may appear like a memecoin, dogecoin has various use cases that could help it gain a larger following in the future. In this article, we’ll talk about some of the most popular use cases of the cryptocurrency.
Originally, dogecoin was designed to be used as a payment method. Its low transaction fees and convenient nature make it an ideal alternative to other cryptocurrencies. Some of the prominent companies that have accepted dogecoin as a payment method include Tesla, GameStop, and Amazon. Due to its popularity on social media, many companies have also started accepting dogecoin as a payment method.
Regardless of whether you’re investing in dogecoin or buying the best metaverse coins, there’s always been some element of speculation in the process. Dogecoin has long been admired by investors due to its impressive returns in the past. In 2021, the rapid price rise of the cryptocurrency is expected to be one of the most talked about factors in the market.