What is Dogecoin?
The digital age is exciting as tons of things we interact with on a daily basis are digital in form. From articles we read online, the music we stream, movies we watch, games we play. They’re all digital. Even the way we handle our money is now digital. Then there’s digital currency. There are tons out there now but one that’s getting a lot of attention recently (aside from Bitcoin and Ethereum) is Dogecoin. But what is it? And what is a Doge, if you have to ask? Find out below.
What is Dogecoin?
The term Dogecoin is a combination of the Shiba Inu meme “Doge” and Bitcoin itself—resulting in Dogecoin. It was introduced as a “joke currency” created by two engineers named Billy Marcus and Jackson Palmer.
Its structure was based on an existing cryptocurrency called Luckycoin, a cryptocurrency that featured randomized rewards for mining a block of coins. Dogecoin’s official launch was on December 6, 2013, having an original supply of 100 billion Dogecoins but was then announced to produce an infinite amount, which built inherent inflationary momentum. A few weeks later, Dogecoin saw a 300% rise in value from USD 0.00026 to USD 0.00095, noting that it had volumes of billions of Dogecoins per day.
Since its introduction in 2013, Dogecoin has developed its own online community reaching a market capitalization of USD 5.3 billion as of January 28, 2021, then shooting up once more to USD 10.2 billion for February 8, 2021. So what started as a joke has now become a serious meme-y business—for real though, it has become serious.
Dogecoin might be my fav cryptocurrency. It’s pretty cool.
— Elon Musk (@elonmusk) April 2, 2019
— Snoop Dogg (@SnoopDogg) February 6, 2021
Among those who voiced their support is Tesla CEO Elon Musk and American Rapper Snoop Dogg, Elon stating that “Dogecoin might be my fav cryptocurrency…” while Snoop shared a doge-themed meme—pretty pawsome if I do say so myself.
How does Dogecoin work?
This cryptocurrency runs on blockchain technology. Blockchain technology is a structure that stores transaction records known as the ‘block’ in several databases known as the ‘chain.’ It is basically a distributed digital ledger that stores all transactions made using decentralized digital currency.
People called miners then use computers to process transactions and record them on the Dogecoin blockchain as ‘proof of work.’ Miners can then earn additional Dogecoin, which can be held or sold on the open market.
Where can I find Dogecoin?
Dogecoin has its own domain which includes an active community in Discord and Reddit. If you want to find a goldmine of memes and cryptocurrency information, you can check the Dogecoin community. It developed its own culture in 2013 due to its low barrier of entry compared to other cryptocurrencies.
There is no lifetime limit on the number of existing Dogecoins. Millions of new Dogecoins are released into the market, unlike Bitcoin, which has a cap on how much of it can be produced. Investing in Dogecoin poses its own risk, just like any other cryptocurrency. Those who invested in Dogecoin in the early parts of 2021 have been rewarded, but its performance for the future can’t be determined just yet.
However, as of May 9, Dogecoin lost more than a third of its price, sinking to 44 cents on Sunday, after Elon Musk called it a ‘hustle’ during his guest-host appearance on Saturday Night Live. On the brighter side of things, SpaceX accepts Dogecoin as payment to fully fund its DOGE-1 Mission to the Moon set for the first quarter of 2022.
And there you have it, feel free to share your thoughts on this in the comments below.
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