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Dogecoin's price is on a surge. Is tesla's investment in Bitcoin a distraction from the real issue?
The price of DOGE hits a record high after Musk's tweet on Monday, which made people think it can be evidence of a vast market bubble.
Although the price of Dogecoin is dropped by 5.46% in 24 hours, making its price $0.07, but the surge of Dogecoin after the tweet of Elon Musk is real. A few days ago, many celebrities and Elon Musk, CEO of Tesla, posted many tweets backing Dogecoin that boosted its price to an all-time high. On Monday, after the tweet, it rallied 37% in 24h to record a price of $0.085.
Notably, Dogecoin is a cryptocurrency created on a doge meme in 2013. It was started as a joke, but now its price has been pumped up. No doubt that this cryptocurrency is more or less based on the codebase of Bitcoin, but the transactions of Dogecoin are cheaper and faster compared to Bitcoin because the former has faster blocks. But, it also creates more orphan blocks (rejected blocks) compared to Bitcoin.
Coindesk, in its recent article, mentioned that Dogecoin could be attacked easily compared to Ethereum or Bitcoin to cheat the network for printing new coins or for stealing others' coins. Dogecoin seems to be offended by the publication. It tweeted a few hours ago, claiming that the statement is false. They requested Coindesk for the correction, which hasn't been responded to.
Coindesk recently published an article claiming that "it's theoretically easy to 51% attack Dogecoin to cheat its network to print new coins" This claim is false. Their math is wrong by several orders of magnitude. Requests for correction were left unanswered.
Dogecoin (@dogecoin), February 11, 2021
Although Dogecoin has gained immense traction after the rally pushed it by 1500% higher this year, Billy Markus, the Dogecoin creator, revealed recently that he had sold all his coins six years ago (in 2015), and he is no more part of this project. Notably, Billy Markus, along with Jackson Palmer (co-founder), created the Dogecoin as a joke.
After Elon Musk's investment in Bitcoin, many people, including Michael Burry, are questioning it. According to Michael Burry, the record price of Dogecoin after a series of tweets and the investment in Bitcoin by Tesla can be a trick to distract from China's troubles. He also tweeted about Dogecoin that a cryptocurrency meant to be a joke is now soaring to a record high price after Musk's tweet.