What Is Dogecoin
Dogecoin is a cryptocurrency that was developed as a "meme" based on a Litecoin fork, originally created in 2013 and later abandoned by the developers. It was developed when its developers began to explore Bitcoin as well as the possibilities that the cryptocurrency world offers.
However, due to the fact that they saw more and more altcoins pop up just about everywhere, the developers known as Jackson Palmer and Billy Markus decided that they would like to implement their own unique spin on the industry.
As such, Dogecoin began as a joke and had almost no value. It was used as a tipping mechanism for multiple years. It has a strong following to this very day and a fan base that does not stop supporting it. It is a Proof-of-Work (PoW) cryptocurrency, and it has had enormous swings in value based on factors such as social media presence and headline attention.
Dogecoin is fully based on the code of the defunct Litecoin (LTC) fork known as Luckycoin.
It borrowed the scrypt-based, proof-of-work (PoW) consensus algorithm, which is how it enforces the consensus from the network of computers which run the software.
This means that anyone has the ability to dedicate computer power and become a validator on the dogecoin network, and engage in mining. In exchange for contributing this much work to the network, they are rewarded with newly minted DOGE tokens.
However, in 2014, merged mining was introduced, which means that this mining process was integrated alongside Litecoin's process, and anyone that mined Litecoin now had the opportunity to mine Dogecoin at the same time, all of which is made possible without impacting the operational efficiency of either network or blockchain.
Dogecoin Founders
Dogecoin was launched in December of 2013 by two people: Jackson Palmer and Billy Markus.
However, the unique story here is the fact that both of them left in 2015 after deciding that the cryptocurrency was not aligned with their values. It simply became something else over time.
Furthermore, the Dogecoin cryptocurrency gets its name from the Doge internet meme, and it originally was intended to mock the cryptocurrency industry.
How Does DOGE Work
Dogecoin is used in online commerce and has been primarily used as a means for tipping online creators and rewarding them for their work. It has an exchange rate and can be bought, traded, sold, and even exchanged for FIAT currency.
When it comes to its community, it's big, and it even goes by the name of "Shibes." They use cryptocurrency as a means of supporting their favorite creators. Dogecoin had this cap of 100 billion DOGE, which could ever be mined; however, it was removed and had, in turn, made a limitless supply available. It is an easy cryptocurrency to get into and an easy one to mine. As such, many newcomer investors tend to jump in on it quickly.
Dogecoin offers fast transactions as well as low transaction fees, which contributed towards its widespread adoption. Furthermore, its limitless supply keeps the price stable, and it has one of the largest communities with over 2.1 million followers on its Reddit page.
Furthermore, Dogecoin is mined through the sage of the Proof-of-work (PoW) hashing algorithm known as Scrypt, which was based on Litecoin, and is much easier to mine than Bitcoin.
Furthermore, Tesla CEO Elon Musk has supported the cryptocurrency token on the social media platform Twitter, raising its price, and due to this enhancement in perception, a lot of investors have started to gain interest in this altcoin. This has led a lot of people to accept the token, and furthermore, news has also contributed to its growth and implementation in apps as well as reliance.
It was created and accepted as a joke, but the news, as well as Bitcoin's dominance, has led to an enhancement in the token's reliance and reputation and created a plethora of followers.
The more apps that accept the token, the higher the Dogecoin price goes as a result. In fact, the Dogecoin price has claimed a lot in its recent history, and it has fallen, making it volatile. Unlike Bitcoin, it is easier to mine, and unlike Bitcoin, its followers are a lot more enthusiastic about it and accept it.
Once news started popping up about the token, or Bitcoin as well, its price went up as a result. This leads us to the conclusion that the token is heavily impacted by the news.
Bitcoin is the dominant cryptocurrency here, but Bitcoin is harder to mine and a lot more expensive, and this is where Dogecoin gains its value.
Where Can You Buy DOGE
The Dogecoin community consistently pushes its market capitalization "to the moon," and as such, it has found its place in the Crypto Market.
Just like any other cryptocurrency, Dogecoin has a floating exchange rate with other digital assets and can be bought, traded, and exchanged in the same way. However, aside from a form of investment, it is primarily used as a tipping mechanism over different social networks, and it is exchanged between content creators and their peers.
If you want to buy, sell or trade Dogecoin, you can do so on many cryptocurrency exchanges such as Binance, Binance Futures, Upbit, BitZ, OKEx, HuobiGlobal, and Bitinka. Our step-by-step guide on how to Buy Dogecoin will help you get started!
Dogecoin (DOGE) is and always will be considered as a meme cryptocurrency token; however, what once began as a joke has slowly found its way into the market as a serious contender and has actually remained on top of many cryptocurrency lists right under the biggest cryptocurrencies ever made. It has one of the most enthusiastic communities out there, one that many altcoin developers dream of, and it has certainly made its impact throughout the entirety of the cryptocurrency industry.
Learn More About Dogecoin
