What is Dogecoin?
Dogecoin (DOGE) is a peer-to-peer, open source cryptocurrency. It is considered an altcoin and an almost sarcastic meme currency. Launched in December 2013, Dogecoin's logo features a Shiva Inu dog
Although this was apparently made as a joke, Dogecoin's blockchain still has its merits. Its underlying technology is derived from Litecoin. A notable feature of Dogecoin, which uses a scripting algorithm, is its low cost and unlimited supply.
Key TAKEAWAYS
Dogecoin is an open source cryptocurrency started in 2013 by Jackson Palmer and Billy Marcus.
Dogecoin was originally started as a prank based on a popular meme featuring a Shiva Inu (a Japanese breed of dog).
It is based on Litecoin and uses the same proof-of-work technology.
Dogecoin has a loyal community of supporters who trade it and use it as a tipping currency for social media content.
Understanding Dogecoin :
Dogecoin started out as a joke, but after it was created, it gained a following. Towards the end of 2017, it was participating in a cryptocurrency bubble that significantly increased the value of many coins. 1 After the bubble burst in 2018, Dogecoin lost a lot of value, but it still has a key proponent who trades and uses it to tip content on Twitter and Reddit.2
Users can buy and sell Dogecoin on digital currency exchanges. They can choose to save their Dogecoin in an exchange or in a Dogecoin wallet.
History of Dogecoin :
In the beginning
Jackson Palmer, Sydney, Australia, Adobe Inc. A product manager in its office created Dogecoin in 2013 as a way to ridicule the hype surrounding cryptocurrency. Palmer has been described as a "skeptic-analyst" observer of emerging technologies, and his initial tweets about his new cryptocurrency venture were tongue-in-cheek. But after receiving positive feedback on social media, he bought the dogecoin.com.1 domain
Meanwhile in Portland, Oregon, Billy Marcus, a software developer at IBM who wanted to create a digital currency but had trouble promoting his efforts, discovered the Dozcoin buzz. Marcus reached out to Palmer to get permission to create software behind an actual Dogecoin.3
Marcus based Dogecoin's code on Luckycoin, derived from Litecoin itself, and initially used a random reward for block mining, although in March 2014 it was changed to a static reward. Dogecoin uses Litecoin's script technology and is a proof-of-work (PoW) currency.4
Proof of work (PoW) forms the basis of many cryptocurrencies, allowing for secure, decentralized consensus.
Palmer and Marcus launched the coin on December 6, 2013. Two weeks later, on December 19, the value of Dodgecoin rose by 300%, probably due to China banning its banks from investing in cryptocurrencies.
The rise of dogecoin :
Dogecoin has marketed itself as a "fun" version of Bitcoin with Shibu Inu (Japanese dog) as its logo. Dogecoin's casual presentation suits the mood of the growing crypto community. Its script technology and unlimited supply was an argument for a faster, more adaptable and consumer-friendly version of Bitcoin.
Dogecoin is an "inflationary currency", while cryptocurrencies such as Bitcoin have a limit on the number of coins that can be used to create inflationary factors. Every four years, the amount of bitcoin released into circulation through the Mining Prize halves, and its inflation rate also halves until all currencies are released.
In January 2014, the Dogecoin community donated 27 million dozecoins worth about $ 30,000 to travel to the Sochi Winter Olympic Games of the Jamaican Bobsled team. In March of that year, the Dogecoin community donated Dogecoin worth $ 11,000 to build a well in Kenya. AS 55,000 Dogecoin.78 to sponsor NASCAR driver Josh Wise.
On its first birthday, Dogecoin had a market capitalization of 20 million and a loyal fanbase.
The debate takes some fun from Dogecoin :
Dogecoin's free-wheeling fun lost some of its joy in 2015 as the crypto community, in general, began to get more serious. The first sign that things were not going well with the Dozecoin community was the departure of Jackson Palmer, who said that a "toxic community" had grown up around the currency and that it was making money.
One member of that toxic community was Alex Green, aka Ryan Kennedy, a British citizen who created a Dogecoin exchange called Mullah. Alex Green (his pseudonym) was known in the community as an extraordinary tipper who mistakenly paid N 15,000 instead of $ 1,500 to a NASCAR fundraiser.
Green's exchange persuaded members of the exchange community to donate large sums to help fund his exchange, but it was later revealed that he used the grant to buy more than $ 1.5 million in bitcoin, which resulted in him buying a luxurious lifestyle. Separately, Kennedy was convicted of multiple rapes in 2016 and sentenced to 11 years in prison.
Dozcoin during and after the Crypto Bubble of 2017-2019 :
Towards the end of 2017 the value of Dogecoin skyrocketed with the cryptovers at the top of the bubble and it fell with the rest of the cryptovers in 2018.
Dogecoin crossed the 1 billion market capitalization for the first time in the 2017/18 Crito Bull run.
In the summer of 2019, Dogecoin saw another price push with the rest of the crypto market. Dodgecoin enthusiasts rejoiced when the cryptocurrency exchange listed the currency, and many thought Tesla, Inc. (TSLA) CEO Elon Musk backed the currency in a secret tweet.
Dogecoin in the 2020s :
Dogecoin's infrastructure is not the central focus for coin developers who volunteer. One of the reasons Dogecoin continues to work and do business is because of its active community of miners. As Zachary Mashiach of CryptoIQ puts it:
Numerous script miners still prefer Dogecoin (DOGE) over other script PoW cryptocurrencies. In fact, the Dogecoin (DOGE) hash rate is roughly 150 TH / s. This is just below the Litecoin (LTC) hash rate of 170 TH / s, probably because Dogecoin (DOGE) can be combined with Litecoin (LTC), which means miners can mine both crypto simultaneously using the same function. Basically, virtually everyone who mines Litecoin (LTC) also chooses Dogecoin (DOGE) mines, because aggregate mining increases Dogecoin (DOGE) profits.
Musk publicly backed Dozecoin in 2021, tweeting in May that he was working with currency developers to improve transaction efficiency. Earlier this year, the founder of SpaceX even ran a poll on social media asking whether Tesla should accept Dozecoin as a form of payment. In October, the movie chain AMC Entertainment Holdings, Inc. (AMC) has announced that it will accept Dogecoin for digital gift card purchases by the end of the year, adding more utilities to meme-based cryptocurrencies.
As of October 8, 2021, Dogecoin's market cap ranking was at No. 10, with a market capitalization of $ 31.9 billion, well above its previous position of 48 48 and a market value of $ 339 million.
Frequently Asked Questions (FAQs)
How do I buy Dogecoin?
You can buy Dogecoin by setting up an account on one of the many cryptocurrency exchanges. Some exchanges that support Dogecoin transactions include Coinbase, Binance and Kraken. Robinhood, a traditional brokerage that enables crypto trading, also supports Dogecoin.
Where can I spend Dogecoin?
You can spend your Dogecoin with any trader who wants to accept it. Elon Musk's DOGE embraces a wide variety of businesses, including some of the highest profiles, including SpaceX and the Dallas Mavericks. Many Dogecoin holders use their DOGE to advise content creators on Reddit and other social media platforms.
Is Dogecoin secure?
Dogecoin uses blockchain technology, just like Bitcoin and other cryptocurrencies. Blockchain technology is considered extremely difficult to hack, although not impossible. Being among the cryptocurrencies with the largest market capitalization and wide acceptance rate, Dogecoin is relatively secure.