Dogecoin, the meme-inspired cryptocurrency, may have begun as a joke, but it has already expanded into the trillion-dollar cryptocurrency market.
According to CoinMarketCap, Dogecoin it is presently the 6th most valued cryptocurrency, with a year-over-year rise of almost 1400 percent. While different types of cryptocurrencies have some similarities, each digital currency has its own distinct features that set it apart.
The history of Dogecoin
It began as a joke. Bitcoin, the first cryptocurrency, was a great technical idea that made it easy for anyone to exchange digital money at low fees and without having to ask anyone for permission. Everyone could copy Bitcoin because it was open source. At one point, clones like Litecoin and Peercoin were all over the place.
It’s a good thing that is a joke about this. It was made in December 2013 by two software engineers, Billy Markus and Jackson Palmer. It’s a copy of Bitcoin (Litecoin, which is very similar to Bitcoin) that features the Shiba Inu dog and is almost always referred to in a silly language that uses dog and moon metaphors.
Dogecoin had a lot of people who were very loyal from the start. There were people who liked the idea of crypto but wanted to make fun of Bitcoin, so they came to see it. It drew people who liked dogs. It attracted anyone who wasn’t very interested in crypto but still wanted to be a part of it.
Some people don’t understand. Dogecoin even had its co-founder, Palmer, give up on it. In 2018, he said that the rising price of Dogecoin was a sign that the crypto market was too hot. “I think it says a lot about the state of the cryptocurrency space in general that a currency with a dog on it that hasn’t released a software update in more than two years has a $1B+ market cap,” he said in January 2018. The crypto market crashed a few days later.
But it didn’t give up. Due to the fact that Dogecoin doesn’t need a lot of active management, and also because the crypto space is going to be a lot better in 2020, Dogecoin has become bigger than it was before.
What Is Dogecoin?
Dogecoin was created in 2013 by software programmers Billy Markus and Jackson Palmer as an open-source peer-to-peer cryptocurrency. Dogecoin, like other cryptocurrencies, is based on blockchain technology.
Dogecoin started off as a joke, and it went on for a long time with little public attention. Dogecoin’s price averaged around a fifth of a cent over the five years between May 2015 and May 2020.
Its popularity grew in tandem with an uptick in retail investing during the pandemic, as well as frequent tweets from well-known entrepreneur Elon Musk. In reality, on May 8, 2021, the price of Dogecoin reached a high of 74 cents, a growth of more than 15,700 percent from the start of the year.
Dogecoin’s Unique Features
Dogecoin has a few key characteristics that distinguish it from other digital currencies. To begin with, there is no limit to how many Dogecoins can be mined. This is in contrast to Bitcoin, the most popular cryptocurrency to date, which has a 21 million coin lifetime cap. Because there are an infinite number of Dogecoins, it may be very inflationary.
The method Dogecoin is mined is another aspect that distinguishes it from other prominent cryptocurrencies like Bitcoin. Dogecoins may be mined substantially faster than other digital currencies since they use Scrypt technology.
What is the connection between dogecoin and Elon Musk?
Elon Musk, the CEO of Tesla and SpaceX, isn’t known to hold any dogecoin, but he has shown an interest in it.
“Dogecoin might be my fav cryptocurrency,” the billionaire said on Twitter in April 2019. It’s a lot of fun.”
Dogecoin might be my fav cryptocurrency. It’s pretty cool.
— Elon Musk (@elonmusk) April 2, 2019
Since then, he’s tweeted infrequently about bitcoin and other cryptocurrencies. These tweets frequently result in massive price increases in the digital currency he mentions.
Musk has previously maintained that his tweets regarding dogecoin are a joke, but they’ve also periodically coincided with billion-dollar crypto market swings.
It’s inevitable pic.
— Elon Musk (@elonmusk) July 18, 2020
Musk has recently sparked controversy in the cryptocurrency industry by attempting to put dogecoin against bitcoin. Tesla, Musk’s company, said in February that it had purchased $1.5 billion in bitcoin and would accept it as payment for its cars, sending bitcoin’s price skyrocketing.
Last week, however, Musk reversed his position and stated that Tesla will no longer take bitcoin, citing the environmental impact of “mining” bitcoin.
Individuals complete mathematical and algebraic formulas to mine cryptocurrency. It can be done independently or in a group setting (known as pool mining). Mining Dogecoins can be fairly costly due to the equipment necessary.
The way Dogecoin is mined sets it apart from other prominent cryptocurrencies. Scrypt technology is used to mine these coins, which is often faster than other types of cryptocurrency mining.
Dogecoin’s total supply
When it was first released, it was said that a maximum quantity of 100 billion coins would be available. The founders have since opted to remove the limit, allowing for an endless quantity of coins. There are a bit more than 130 billion Dogecoins in circulation as of June 14, 2021.
How to Buy/Invest In Dogecoin
Any brokerage site that already trades Dogecoins is a good place to start. Cryptocurrency exchanges like Binance and Coinbase, as well as traditional brokerages like Robinhood, are among the most popular options. Bitcoin can now be invested in both standard and Roth IRAs, according to certain brokers.
What is the difference between dogecoin and bitcoin?
The most significant distinction between the two coins is that, while bitcoin has a fixed quantity, dogecoin has an indefinite supply.
Bitcoin’s supply is capped at around 21 million units, according to proponents, which means it can behave similarly to other limited-supply assets like gold. Bitcoin proponents say that this is why digital currency will become a reliable “store of value” in the future.
Dogecoin, on the other hand, has no such limit at the moment. Marcus, the developer of Dogecoin, has stated on Twitter that the limitless supply was unintentional. He stated that the key goal in developing dogecoin was to create a cryptocurrency that allowed for speedier transfers.
What is the value of one dogecoin?
A dogecoin’s value is based on how much someone else is willing to pay for it.
If you want to buy something with dogecoin, there aren’t many businesses that will accept it. This means that its value is mostly determined by the market, which can be very volatile.
When you look at the “Open Exchange Rates,” one Dogecoin costs $0.19 today, which is -0.78% less than when you looked at it yesterday. The chart shows the exchange rate of the Dogecoin in relation to the United States Dollar, as well as the table that shows how the cost of the coin has changed over time.
To use the currency converter, you can change 1 Dogecoin to Dollars and find out how much 1 dogecoin is worth in Dollars right now. This also works the other way around. You can do a reverse calculation and figure out how much 1 Dollar is worth in Dogecoins right now.