What is Dogecoin? All You Need to Know
Dogecoin is probably one of the most famous cryptocurrencies in the world – and it’s not because of its spectacular growth or ingenious underlying technology. It’s because Dogecoin is the only cryptocurrency that started of as a joke and even bears the name of a popular Internet meme – a funny Shiba Inu dog face known as Doge. The developer himself poked fun at the cryptocurrency industry and tweeted ‘Investing in Dogecoin, pretty sure it’s the next big thing’ on his social media. He was immediately contacted by a software developer that suggested they make Dogecoin into an actual cryptocurrency. One month later, Dogecoin was actually brought into existence. But what makes Dogecoin one of the most popular and talked about cryptocurrencies in the world? We’re here to paint the full picture for you.
What is Dogecoin and who developed it?
Dogecoin is basically a clone of Litecoin – it’s based on the same algorithm (Scrypt), and all changes made to the Litecoin system will apply to Dogecoin as well. However, Dogecoin has its own team of developers that are supposed to work on the technology behind it, but the Internet hasn’t seen a single Dogecoin update in more than 2 years.
The original creator, Jackson Palmer, which is also the person behind the infamous Dogecoin tweet, is still skeptical about the future of the currency. Palmer has repeatedly stated that he is disappointed with the current trends in the cryptocurrency niche, particularly the fact that a currency with a meme on it and no updates in 2 years could reach a one-billion-dollar market cap. However, the community is still very positive about the coin, and it did grow a whole lot in the past year. Dogecoin only valued $0.001 when it was first released, and has recently hit an all-time high of $0.17.
It’s worth mentioning that Dogecoin never intended to become a serious cryptocurrency in the first place, so the developers are not particularly interested in attracting huge investments. That, and the fact that Dogecoin started off as a token for rewarding people on the Internet. Grace to the coin’s low price, people would usually use it to tip other Reddit or Twitter users who offered them useful answers or contributed to a discussion. If the coin were to grow at breakneck speed, like Bitcoin or Ether, the community will not be able to use it as easily. Think about it – it’s much easier to tip a person 5 DOGE than 0.000001 BTC, right? That is one of the reasons why we probably won’t live to see Dogecoin hit spectacular prices anytime soon.
Where can you use Dogecoin?
In fact, Dogecoin is also the most popular cryptocurrency for charity and crowdfunding projects. The Dogecoin community has gathered money for bringing the Jamaican bobsled team to the Sochi Olympics (something the team couldn’t afford), and for building a well in a remote region of Kenya. As people who often got DOGE from tips on forums had a lot of them lying around, the community managed to fully fund all the projects they started. The best way to use Dogecoin is to get involved in the community, which is active on Reddit and other forums.
You’re probably wondering if there’s any other way of getting your hands on some DOGE except for becoming popular on the subreddit. You can also purchase it from an exchange, or mine it. The easiest way to buy it from an exchange is to get some Litecoin and convert them into DOGE, but you can also find websites that trade Dogecoin, such as Litebit. You can also mine the coins using a powerful CPU. As the Scrypt algorithm relies on large amounts of memory as opposed to hashing power, you can very well mine them from a home desktop. If you’re not very fond of purchasing and building your own rig, you can also find Dogecoin cloud mining contracts on websites like Hashflare – but most of them pay out in LTC or BTC instead of DOGE. As for storing Dogecoin, you will need a compatible wallet, such as the original Dogecoin client or Coinomi.
As a conclusion to all above said, Dogecoin is definitely not the currency you want to invest in if you’re looking for a competitive environment and significant growth. However, it’s a great coin for cryptocurrency beginners, especially if you’re willing to join the Dogecoin community and learn more about it. DOGE’s future is still vague, but one thing is certain – with such a supportive community, it is definitely here to stay.