Dogecoin is a meme-based digital currency that joined the cryptocurrency craze back in 2013. This coin is pretty notorious. For all the newbies on the scene, you’ve probably been wondering what all the fuss is about. In short, when it comes to cryptocurrency, there are three different types. You’ve got your Bitcoin, altcoin, and tokens. Dogecoin falls into the alternative coin breed.
Dogecoin was created in 2013 and named after the popular meme of a Shiba Inu. The creators of the cryptocurrency use Litecoin technology to power this one. It was created as a sarcastic joke by Jackson Palmer, a product manager at Adobe. A software engineer at IBM, Bill Marcus, saw the buzz this cryptocurrency was getting and developed software for Palmer to accompany his product. From there, the cryptocurrency became a viral sensation and jumped a staggering 300% after only two weeks of being launched.
Dogecoin is free from traditional banking fees, open-source, and a seemingly fun experience compared to the other cryptocurrencies on the market. A great appeal of crypto is that they use blockchain technology, which is security-focused. You may be shocked that the term cryptocurrency was actually used as far back as 1998, and digital peer-to-peer instant payment technology as we know it, launched around 2009, with Bitcoin really opening up the digital currency world.
However, Dogecoin is an inflationary coin, meaning there is no finite number of them to be mined. Instead, the number is unlimited, which the creators believe created a more versatile, newcomer-friendly community. It also means that the price can never be driven up by scarcity since there is no supply cap.
The sense of community within Dogecoin has always been palpable. At the height of their success, they donated millions of coins to relief funds and humanitarian projects worldwide. Unfortunately, the friendly community that began Dogecoin did not continue and the coin took losses.
After a handful of scandals and scams, like the rest of the crypto community, Dogecoin took a massive plunge in 2018. However, despite the controversy and downfall of cryptocurrency, a dedicated team of miners continues to mine for Dogecoin and believes in the mission. More recently, in 2020, after a week of viral videos on Tiktok, the coin jumped 35% in price and 2,000% in volume. While that was short-lived, Dogecoin still ranks as a top 50 cryptocurrency.
Everyone is genuinely trying to find out whether Dogecoin is a viable investment. However, Dogecoin’s whole story is truly fascinating and who knows where this will go in the future. Crypto does seem to be trickling into the mainstream. As we speak, the future of shopping will definitely be affected by this digital currency. It’s already beginning, with Tesla announcing this year they will begin accepting Bitcoin as a means of payment for their vehicles in the near future. Even the most unlikely places are accepting Dogecoin as a legit currency.
The whole premise behind Dogecoin is pretty hilarious and completely effortless. And that’s definitely why it has this loyal following. Dogecoin has paved the way for lighthearted pop culture-based currencies if nothing else. It’s pretty cool to Dogecoin fans that most of this publicity hasn’t been the result of a grand marketing campaign.
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The most interesting facts about this cryptocurrency
If we caught your interest with the previous paragraphs, here are a few interesting things about Dogecoin.
When it comes to its safety, it’s based on nodes, and it’s pretty stable for hacking. But, due to traffic and interest, the network can become vulnerable and easy to hack. That’s why the owners work on security issues all the time.
It has a large base of fans all around the world. There is no person in the world that doesn’t love the doge meme, so it’s pretty expected that a currency inspired by it will attract a lot of attention. It’s interesting that its value started growing thanks to Reddit users, who helped it triple the price.
And while the other cryptocurrencies are expensive to mine and trade, Dogecoin is the easiest one to buy. You only have to create a digital wallet you will use on the exchange platforms, and exchange it for other coins or fiat money. Store your new coins in the wallet, until you decide it’s time to exchange them for real money or other cryptocurrencies.
There is a huge supply of this coin because the developers thought it would be a joke forever. It’s estimated that there are over 100 billion Dogecoins already mined, and no one knows how many are there exactly, but according to the available information, probably 5.2 billion are generated every year. This is far more than Bitcoin’s supply. The mining process is also very fast, which means a lot of these coins are mined every day.
But do you know what’s the main thing this crypto has, that the others don’t have? The huge fanbase and the whole hype all over the social media. A lot of popular people are fans of it, including Elon Musk, Snoop Dogg, Gene Simmons, and many others who already own a few coins and proudly promote them. And they aren’t paid for it, which is only proof of how attractive and interesting it is for the people. The more it’s present on social media, the more people are getting interested and want to buy at least one coin for them.
This currency and the whole market built around it is volatile, but so is Bitcoin’s. It doesn’t mean you need to give up on the idea to own a few of them. You only need to consider it as an entertainment mostly, and everything that comes as an addition to it is a clear profit to you.
Knowing that this cryptocurrency has strong promotors, we don’t even mind if it has a bright future. But, nothing is for sure until enough time goes by, and we see how things are going. Until then, if you want to buy one or two Doges, then do that, maybe one day they will help you become rich – who knows.