Do Dogecoins Really Exist, or Are They a Scam? Here Are the 13 Facts You Must Know Before Buying Dogecoin

December 8, 2022
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A Shibu Inu dog served as Dogecoin’s emblem, which was used to promote it as a “fun” alternative to Bitcoin. The informal way in which Dogecoin was presented fit the emerging crypto community’s vibe. A speedier, more flexible, and more user-friendly version of Bitcoin was justified by its technology and limitless supply.

Dogecoins

While cryptocurrencies like Bitcoin are deflationary since there is a cap on the total number of coins that can be issued, Dogecoin is seen as an “inflationary coin.” The quantity of Bitcoin that is released into circulation as a result of mining rewards is halved every four years, and its inflation rate is halved along with it until all coins are issued.

Dogecoin Investing: What You Should Know

Dogecoin: is it a scam? Is it worthwhile to invest in? Dogecoin: Will it fall? Will it be accepted as a standard world currency? Investors and would-be investors are already questioning all of these issues, especially since it appears that this cryptocurrency has been intentionally or naturally inflated by unconventional methods and celebrity tweets.

Additionally, to add interest, Dogecoin was promoted and discussed on Saturday Night Live by powerful figures in the financial world like Elon Musk. The Tesla CEO appears to be in love with it and even has an impact on the price, known as “the Musk effect,” according to reports. As many have noted, this occurs when Mr Musk even mentions poop, and the value significantly rises.

Why exactly is Dogecoin getting so much attention, and what does that mean for you? Is the cryptocurrency being marketed by a billionaire merely a fraud, or is there actually a chance to invest in something that has the potential to be very profitable for your financial future? Let’s attempt to deconstruct cryptocurrency fraud and determine the purpose of the Dogecoin conversation.

In this post, we’ll outline some of the advantages and disadvantages of Dogecoin and present expert viewpoints.

1. Reality vs. Myth

One of the several cryptocurrencies in use today is dogecoin. In essence, as you are undoubtedly already aware, cryptocurrencies are marketed as being a very secure kind of digital money. It is marketed as a form of money that is unforgeable and only exists “virtually.”

It is “a digital or virtual currency that is safeguarded by cryptography, making it virtually difficult to counterfeit or double-spend,” according to Investopedia. Blockchain technology, a distributed ledger enforced by a dispersed network of computers, is the foundation of many cryptocurrencies.

Dogecoin is essentially a form of virtual money that exists virtually in a “wallet” rather than jingling in your pocket. This wallet makes the claim that it is secure and enables you to do many types of transactions online without going to the bank.

Regarding the question of whether Dogecoin is a real financial institution or a work of fiction, you could almost argue that it is both. It is a digital currency that is being promoted by one of the richest people on earth, who is also the “community-appointed CEO,” according to an article written by Mike Novogratz.

2. It was initially a joke

Shibes, the original name for Dogecoin, was designed as a joke to be sent to online users in a lighthearted manner for them to “pay” one another. The token image was a Shiba Inu dog. As Dogecoin gained popularity, there were several frauds and phoney exchanges, which caused its meagre financial value to fluctuate.

Dogecoin was destroyed by numerous scams that surrounded it prior to 2014, but it wasn’t about the money per se. As a result, Dogecoin is now one of many cryptocurrencies with subpar coding, little support, and no real value.

“There is no question that this year’s Doge craze is nothing more than a sign of the end of another crypto bubble.” While some activities may be morally repugnant, they are unabated because financial regulations are rarely regulated and many contend that regulations do not apply to cryptocurrencies, according to Jiulin Teng of DrJLT.com.

“Dogecoin is the first meme currency. It is a Dog coin even though it is labelled as Doge. It was released to make fun of cryptocurrencies, especially Litecoin. This year’s pump is unequivocally supporting this perception.

“We must, however, fault the regulators for this. These influencers make erroneous statements about Bitcoin ($1M, institutional investors swarming in…) and never face any sort of scrutiny. If banking standards are followed, some of the worst offenders ought to already be behind bars.

Even though it was initially a joke, Elon Musk now supports Dogecoin, which is a significant development.

Is investing in cryptocurrencies a good idea, even though many people believe they are the future’s craze? What are the risks involved in buying Dogecoin, and should we all start embracing cryptocurrencies to get rid of the need for governmental oversight of our financial transactions?

3. Why Has Dogecoin Been So Successful?

With the increase in social media exposure and Musk’s promotion, Dogecoin has become a topic of discussion for many people on a regular basis. With the apparent broad support of well-known billionaires, Dogecoin has grown to become one of the most popular cryptocurrencies. Dogecoin’s price has increased by almost 600% in just a few weeks and by 11,000% since the start of the year, according to cnbc.com.

In 2020, a TikTok video popularised dogecoin, but little else transpired after it. Elon Musk and Snoop Dogg’s recent promotion of it has increased its popularity and turned it into a contemporary smash, especially on social media.

It’s simply another cryptocurrency at the end of the day.

4. How Are Dogecoins Used?

More and more individuals are investing as Dogecoin is discussed and heard about more frequently. What happens once you make an investment in it? There are a few ways to use Doge as money as it gains popularity. BusinessPartnerMagazine.com reported that PayPal will soon support Checkout with cryptocurrency, enabling users to use this method of payment.

It seems that a lot of other platforms will soon make it possible to accept payments in Dogecoin, but until that time, it’s not really possible.

5. Is Buying Dogecoin A Safe Investment?

Everyone has this question on their thoughts. Like other investments, you can’t make money unless you spend money, so don’t invest a lot if you don’t want to lose a lot. Dogecoin has been the subject of a lot of speculative activity, thus certainly, its value has increased recently.

The crucial question is: Is this only possible thanks to Elon Musk and other devoted supporters? Maybe. Despite the size and diversity of the Dogecoin community, the cryptocurrency has a global network of supporters who have contributed to amusing causes like the Jamaican bobsled squad in 2014.

There is no certainty when investing, but if you contribute to the developing Dogecoin buzz, you might be able to locate value.

However, the construction of phoney Dogecoin websites is a frequent scam today. The good news is that you can use the Scam Detector’s website validator to determine whether a website is legitimate or not. Examine it below:

Is Dogecoin Going to Crash?

Will Dogecoin crash? is another often asked question. There is a lot of discussion about whether there is even a need to invest in Dogecoin given all the speculation. Growing investment has accompanied this expanding discourse, and as Elon Musk joins in ongoing social media chatter, the price and value continue to rise. Is it possible to foresee what will happen in the event of sustained expansion or a crash?

The Wall Street Journal just published a piece discussing early cryptocurrency speculation, including Dogecoin. As already said, Dogecoin has had explosive growth over the past few months, however as they highlight in their piece “If Crypto Crashes, Tomorrow, It’s No Big Deal. Cryptocurrency has grown in popularity, according to Justin Lahart’s essay “In Five Years, it Might Be,” but it is hard to forecast what will happen in the future.

It was generally acknowledged that crashes may occur with any currency and that when financial staples fail, consumer spending decreases, which has an effect on all financial markets.

Jiulin Teng explains why it will undoubtedly crash in this sentence. “With regulators as lax as they were then, this is just another instance of the Wall Street pump and dump from the 1920s. Each time, the price of Bitcoin drops by 80–90% while that of altcoins generally falls by 90–100%. When Bitcoin stops expanding during the past two months, the craziest pump occurs. The fraudsters all come out at this time and start taking more and bigger risks. Few in crypto have ever visited a prison cell, so this time they are simply more confident.

7. Can Dogecoin Be Used as Regular Money?

Although there is a lot of conjecture, it is still unclear whether Dogecoin or other cryptocurrencies will ever replace fiat money as the standard means of payment. There are many factors that could affect this sort of currency, such as availability to everyone for online trade and usability.

There are currently over $2 trillion worth of different currencies, so a crash in one cryptocurrency might not be felt by anyone besides the people who are holding that particular type of coin.

Mark Grabowski, an associate professor at Adelphi University, on the other hand, is certain that DOGE is simply old news. No offence to DOGE owners, but as a parody coin, it performs no particular function, makes no technological advances, and doesn’t address any real-world issues.

“It hasn’t been updated in a while, making it a dead project, but yet it has a market valuation of around $80 billion,” he continues. The value of DOGE is solely determined by supply and demand as well as how much people are willing to pay for it. Since cryptocurrencies only exist as code in cyberspace, they are solely helpful for trade and are impossible to look at or hold in your hand.

“In essence, it’s a massive scam, and Dogecoin’s value will eventually plummet. Those who invested in it primarily because the number increased and who didn’t own it until very recently will lose everything, warns Grabowski.

8. Is the Dogecoin Hype a Scam or a Real Investment Chance?

Determining whether or not investing in Dogecoin is a wise decision may be a little difficult. There is a lot of space for deception as new horizons/tech/trailblazers develop because the niche is so new that you cannot even call someone with some experience “specialists.”

Many people are deciding to take some risks in order to invest due to the present excitement. It is simple to be persuaded into investing money when those with huge sums of money are eager to promote and invest in currencies.

Depending on your point of view, a quick money-making opportunity might seem like an amazing choice to increase wealth in your portfolio. However, for those who are unwilling to take a financial risk, the current Dogecoin opportunity is a false scam run by those with the biggest pockets.

There is no crystal ball that can foretell where the Dogecoin market will go, despite the fact that you may monitor the market value fluctuate swiftly throughout the day and try to determine when it is ideal to trade, buy more, or trade and sell.

The current market explosion for cryptocurrencies may be seen as a swindle if you believe that every variable investment carries an excessive amount of danger. Otherwise, investing in the current Dogecoin trend, a high-risk, volatile market trend, is a must.

9. Watch out for Fake Dogecoin Websites

As was already noted, one of the prevalent patterns when it comes to Dogecoin scams is the proliferation of fake cryptocurrency websites.

Before purchasing Dogecoin, look into the creators of the business. Check to see if they are well-known and reliable; if a company’s website lacks a “About Us” section, this raises serious suspicion. Purchase from a trustworthy website instead, such as Coinbase or Robinhood. Even though Dogecoin is risky, using a site that has been approved by other users will help you avoid falling for a scam, according to Grant Aldrich of OnlineDegree.com.

Even before Saturday Night Live began this evening, a parody website called snl-doge.org was launched.

10. Optimistic Asset Tag

It appears that among cryptocurrency fans, the definition of Dogecoin is that it is a “overhyped asset.” What does that actually mean, in more detail?

I wouldn’t call it a fraud; rather, it’s an overvalued asset, says BestPriceNutrition.com’s John Frigo. “Why? Since Robinhood and other well-known exchanges handle it, it is simple to purchase. In contrast, only Binance trades a coin like BNB Coin, so you won’t see as much investment or as many newbies pouring money into it.

11. Do Your Own Research, or DYOR

“According to CoinTelegraph, up to 92% of all cryptocurrency projects in 2017 and 2018 were frauds or failed, and this was during the first widely known crypto bull run. Scams have drastically expanded along with cryptocurrency pricing and media awareness, according to Jeremy Britton of BostonTrading.co.

However, according to Britton, three years ago is equivalent to several decades in crypto-years.

It is understandable why there are so many scams in the cryptocurrency industry given that anyone with a few spare minutes and a few hundred dollars may generate a coin. Would you give your money to a

“Hundreds of coins are currently dead, and thousands more have crashed, wiping out investors’ money. Coins that provide no purpose, have no use case, or have extremely concentrated holdings may be scam indicators. A fast search will reveal that about 100 persons hold about 75% of DOGE, for instance. As a result, only one or two sellers might bring down the entire DOGE market, which is not conceivable with the far more popular digital currencies bitcoin, Ethereum, and XRP.

It merely takes a few seconds to verify the legitimacy of the coin developers on LinkedIn or find out whether they have more than a few Twitter followers. Yes, it is advisable to look at peer-reviewed websites like Twitter and LinkedIn rather than unpoliced websites like TikTok and Redditt, where anyone can make any claim without providing any supporting documentation.

You can choose to invest with a reputable fund manager if you’re too busy to DYOR (Do Your Own Research). It’s a minefield out there instead of just a jungle when up to 92% of coins could be scams. Keep yourself safe, and don’t use TikTok.

12. Troubled Celebrities

Britton continues to express his strong opinion of DOGE.

“Unfortunately, it has been demonstrated that we cannot trust celebrities either, as several of them have received payments to promote phoney currencies, and some of them have even been charged with crimes. Some of the real celebrities who sponsored unsuccessful coins include Paris Hilton with Lydian coin, Steven Seagal with Bitcoin (with two ii’s), Floyd Mayweather with Centra and Hubi, Wu-Tang Clan with CREAM, and Gwyneth Paltrow with Abra. We wish we didn’t have to say it, but countless of scams use pictures of famous people without their consent. According to Britton, these advertising are 100% unlawful, 100% immoral, and 100% certain to cause you to lose all of your money.

13. Opinions of Seasoned Cryptocurrency Users

We generally heard bad things about Dogecoin from people who have been in the business for a while.

“Dogecoin: Is it a scam? According to Patrick Moore of CryptoWhat.com, everything depends on the hill you wish to die on. “Dogecoin supporters would vouch for its veracity. After all, the price of dogecoin is rising steadily every other day.

However, I have to admit that Dogecoin is essentially a joke coin because I am an expert in cryptocurrencies. The whole thing goes down the drain because the increase in dogecoin pricing cannot be attributed to a volume increase. This is the biggest cautionary sign for any cryptocurrency coin on the market. Every time you enter a market, you need truly consider the fundamentals of that industry, and Dogecoin completely lacks that.

The biggest warning sign concerning Dogecoin is its murky past, which is full of fraud, fraud, and pump-and-dump schemes. One must keep in mind that Dogecoin hasn’t benefited from any trades; all of the hooplas is a result of pump-and-dump scams. As long as cryptocurrencies have been, pump-and-dump scams have occurred. It simply involves existing ideas being carried out in a new way with Dogecoin.

The dogecoin bubble is not expected to last.

It was never intended to be a tradable unit, says Moore. But in 2016, the pump and dump train propelled it to new heights.

“The scam portfolio for Dogecoin smells like the same old fresh techniques. Fake news, celebrity endorsements, and a lot of buzzes frequently serve as the catalyst for cryptocurrency scams, in which there is no real market behind the coin. Any difference in the sound? It doesn’t, for sure. The dogecoin narrative followed the same script.

“The dogecoin bubble is extremely unlikely to last a few months, despite sounding like the easiest way to become wealthy in a matter of weeks. An identical experiment was conducted using bitcoin, but it failed. Without doing any research, gullible investors that jump on the bandwagon may as well wave their money in the air, along with the joke that is dogecoin.

What do you think? Comment below and let us know!

How to Report a Scammer Using DOGE

First, share this Dogecoin article on social media with your loved ones and online acquaintances. Second, by using the following link, you can formally report scammers and any other dubious cryptocurrency activity to the Federal Trade Commission (FTC):

Report Here To The FTC

How to better protect yourself

Please sign up for the Scam Detector newsletter here if you wish to receive an email every week with the most common frauds. To learn more about crypto fraud, read the articles that are placed immediately below this one so that you can protect yourself online. Last but not least, uncover further bitcoin fraudsters in the comments area below.

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Sushil Kumar https://buzznc.com

I am Buzznc Staff and I am Senior Editor !

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