Currency Overview: All About Dogecoin
Dogecoin is a cryptocurrency created by software engineers Billy Markus and Jackson Palmer, who decided to create a payment system as a "joke", making fun of the wild speculation in cryptocurrencies at the time. It is considered both the first "meme coin", and, more specifically, the first "dog coin". Despite its satirical nature, some consider it a legitimate investment prospect. Dogecoin features the face of the Shiba Inu dog from the "doge" meme as its logo and namesake. It was introduced on December 6, 2013, and quickly developed its own online community, reaching a market capitalization of over $85 billion[a] on May 5, 2021. It is the current shirt sponsor (sleeve only) of Premier League club Watford.Dogecoin.com promotes the currency as the "fun and friendly Internet currency", referencing its origins as a "joke." Software engineers Billy Markus and Jackson Palmer launched the satirical cryptocurrency as a way to make fun of Bitcoin and the many other cryptocurrencies boasting grand plans to take over the world. With the help of Reddit, the site became an instant hit. Within two weeks, Dogecoin had established a dedicated blog and forum, and its market value has reached $8 million, once jumping to become the seventh largest electronic currency in the world. Dogecoin is based on Scrypt algorithm, and the transaction process is more convenient than Bitcoin. Dogecoin takes only 1 minute to confirm, while BTC takes 10 minutes.
Coin network hashrate(H/s):
|Max Supply||Network H/s||Algorithm||BlockNo.||Proof Type||Start Date|
|Unlimited Exactly five billion Dogecoins will enter circulation each year.||PoW||2013-12-06|
|Website||DifficultyAdj.||Mkt. Cap. Penalty||Current Supply||Block Reward|
Founded way back in 2013, Dogecoin was created for digital payments. And for memes. DOGE's famous Shiba Inu dog mascot speaks to the heart of the internet humour of the past decade. Creator Billy Markus made Dogecoin as a joke (if digital money can exist, then even something ridiculous can be digital money). To his surprise, the web took this joke seriously, and DOGE value cultivated a market cap of more than $60 million just a month after its genesis block. Dogecoin may be a joke, but that doesn't mean this cryptocurrency isn't serious business. Dogecoin achieved a $2 billion market cap (1.78 billion Euros) in 2017, making it one of the most valuable digital coins in the world. Dogecoin is mined, just like Bitcoin, with more than 5 billion coins added to the circulating supply each year. Coins can be mined with reasonably priced equipment, unlike the Bitcoin mining hardware. Dogecoin has become a tipping currency on the Internet, allowing users to quickly send small monetary gifts to creators of good content. The Dogecoin community has also banded together to make large charitable contributions - one year even sponsoring the Jamaican bobsled team to go to the Olympics.
Elon Musk and Dogecoin
The success of Dogecoin is closely intertwined with Elon Musk's passion for it. Musk began tweeting about Dogecoin in early 2021, sharing a Lion King DOGE meme. That kickstarted a furious DOGE rally — with temporary dips — that culminated in Musk's appearance on Saturday Night Live.
After the SNL appearance, DOGE crashed despite Musk's promises to moon its price. In the following months, Musk seemed to lose interest, and the price of DOGE has tumbled over 70% from its all-time high. However, Musk still wields power over Dogecoin, as occasional tweets indicate.
Buy Dogecoin Directly From an Exchange or Broker
Digital exchanges like Poloniex sell Dogecoin in exchange for Bitcoin and other popular digital currencies. Exchanges like HitBTC also have high DOGE volume every single day. In most cases, you'll have to first buy a popular cryptocurrency like Bitcoin from Coinbase or another exchange that accepts USD (or your local currency). Then this Bitcoin will be transferred to the exchange that sells Dogecoin, and can be directly traded for the same. Brokers like eToro will let you invest in Dogecoin without buying it directly. A futures contract method called CFD (contract for difference) allows you to make speculations about the future value of DOGE, with funds locked into a contract which expires at a future date. If you predict that DOGE will gain (or lose) value over this time, and it does so, you'll profit without any cryptocurrency ever changing hands.
It's possible to mine Dogecoin from your PC. Miners can pool their computer resources, as well, getting a greater stake of new DOGE that's added to the system each day.
People who use Dogecoin frequently trade it for other digital currencies, and vice versa. If you already have popular cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), or NEO (NEO), you can trade these coins for DOGE on numerous exchanges around the Internet.
Dogecoin has a very high circulating supply, which makes each Dogecoin very cheap. For this reason, it's a perfect cryptocurrency for tipping and giving. New Dogecoin community members are frequently gifted DOGE by other community members. A new Dogecoin brother or sister might be willing to toss some fresh DOGE into your digital wallet. And while we're on the subject...
Dogecoin is a digital currency. Pieces of data, your Dogecoin must be stored somewhere. There are many wallets that support Dogecoin, such as the Dogecoin.info online wallet and the Ledger Nano S multicurrency hardware wallet. Whichever wallet you choose, make sure to make a careful record of this wallet's "private key". This is the secret code associated with your account. If you were to lose access to your wallet, you could use this private key to get your coins back. However, if someone else got access to this key, they could steal your coins. Choose a convenient, low-security web or mobile wallet for Dogecoin you plan to use in the day to day. Choose a highly-secure crypto wallet that's not connected to the internet (like the Ledger Nano S) for Dogecoin you're holding long term as an investment.
FAQ and Forum
- Why Has Dogecoin Lasted So Long?
The easy answer is: people use it! Dogecoin is very popular, not because it’s the best technology in the world, but because it’s fun and accessible. The Dogecoin community welcomes newcomers, markets itself well on the internet, and basically functions as an autonomous decentralised marketing agency for the coin. Other coins might have more to offer “under the hood”, but few have the charisma (and therefore the longevity) of DOGE.
- Does Dogecoin’s Low Price Mean That DOGE is a Good Deal?
A common misperception among new crypto users is that inexpensive coins are a “better deal” than more expensive coins like Bitcoin. This is a misunderstanding of supply and demand. There are more than 100 billion Dogecoins, compared to Bitcoin’s 21 million. All other things being equal, Bitcoin will obviously be way more expensive, because there are fewer of them to go around. Only buy Dogecoin as an investment if you believe it has more return potential than other coins, not because it is cheaper on an individual level.
- Will Dogecoin Prices Bounce Back?
Nobody can tell the future, know for sure if cryptocurrency prices will rise, or whether or not Dogecoin will bring you happiness. But if cryptocurrencies of any kind are to succeed, Dogecoin stands a real chance to be one of the winners. Its dedicated user base is one of the most robust in the industry. So even those Dogecoin has always been a joke, it’s this sense of humour that gives it longevity.
- Without Development, Can Dogecoin Survive?
Normally we would say that any cryptocurrency without active development is dead in the water. However, Dogecoin is very simple technologically (at least compared to Ethereum or other more sophisticated projects). The Dogecoin protocol is on auto-pilot. As long as people enjoy Dogecoin, it will continue to be traded.
- Who Are Dogecoin’s Biggest Competitors?
There have been many joke cryptocurrencies over the years (Monacoin, Jesus Coin, Garlicoin, among others), but none other has had the staying power of Dogecoin. Dogecoin’s real competitors are payment cryptocurrencies, like Bitcoin, Litecoin (LTC), and Nano (NANO). Dogecoin is unlikely to dethrone any of these competitors anytime soon, but it outperforms each of them when it’s on its own turf (the goofy side of the internet).
- Is Dogecoin safe?
Dogecoin uses blockchain technology, just like Bitcoin and other cryptocurrencies. Blockchain tech is considered extremely difficult, although not impossible, to hack. Being among the cryptocurrencies with the largest market capitalization and widest adoption rate, Dogecoin is relatively secure.