(CBS Miami) — Dogecoin may have started as a joke, but it is real money now. At least the meme-inspired cryptocurrency is worth real money. Exactly how much real money varies widely from day to day, or even hour to hour. The cryptocurrency started 2021 valued at a penny, and peaked a couple weeks ago at $.74. Currently the seventh biggest cryptocurrency in terms of market capitalization (the market value of all the Dogecoin available), it closed Tuesday at $.35. Trading most days is fairly volatile.
What Is Dogecoin?
Dogecoin is a kind of cryptocurrency, like Bitcoin, Etherium and many others. According to David Kirsch, Associate Professor of Management and Entrepreneurship for the University of Maryland’s Robert H. Smith School of Business, “cryptocurrencies are basically pieces of software that are algorithmically controlled or algorithmically defined. And the functioning of the algorithm establishes value for the holder of the code. There’s fiat currency, and then there’s math currency. With fiat currency, a state establishes something, and says this token, this shell, or piece of paper has value because we say so. And cryptocurrency is basically a different way of establishing an item of value that can be exchanged electronically.”
“The value accrues,” Kirsch continues, “because people have confidence that they’ll be able to use the little piece of software that establishes their kind of ownership to exchange it with somebody else for something of value. That it’s kind