Once upon a time, “Doge” was just a dubious dog meme. It’s now the symbol of a cryptocurrency that is making waves alongside Bitcoin. Dogecoin, according to its official website, is a funny, fresh, and fast-expanding kind of digital money. “DOGE” is the abbreviation for Dogecoin.
In a nutshell, Dogecoin is comparable to Bitcoin in that it can be bought and sold in the same way that Bitcoin can. You can generate it exactly like Bitcoin, and you can do practically anything with it that you can do with Bitcoin.
What is Dogecoin?
Dogecoin (DOGE) is a cryptocurrency on the basis of comic motivation instead of a pressing necessity to meet a specific use case. The cryptocurrency was influenced by the “Doge” meme, which depicts a Shiba Inu resting with its paws curled over each other. Text overlays the image of the dog, with statements promoting illogical grammar.
Dogecoin took inspiration from the wider cryptocurrency community’s hilarious and unique attitude. It started to take shape in 2009 with the introduction of Bitcoin (BTC). Bitcoin is a blockchain-based asset capable of pushing and holding value. After Bitcoin, dozens of other crypto assets emerged, each promising different advantages, such as increased anonymity.
Bitcoin’s technology is open-source. Additionally, other groups have adopted it to construct alternative crypto assets and blockchains. Following the creation of Litecoin (LTC) and, later, Luckycoin (LKY) based on Bitcoin’s code, software programmers Billy Markus and Jackson Palmer exploited Luckycoin’s code to create Dogecoin in just hours.
Palmer and Markus left the Dogecoin project in the years following its inception. Markus liquidated his Dogecoin holdings in 2015 when they were worth around the same as a pre-owned Honda Civic.
Who created it and how did it all start?
It began as a satire influenced by the famous “Doge” meme of 2013. Adobe software engineer Jackson Palmer and IBM software engineer Billy Markus invented Dogecoin.
Following Bitcoin’s success, various altcoins began to show up in the market. Jackson Palmer couldn’t believe the large number of altcoins making an appearance every day. So, he put out a joke on Twitter that he was going to invest in Dogecoin, a fake meme-based coin to taunt the crypto industry. Everyone took it seriously, and a massive community formed around it very quickly, taking it much further than Palmer ever envisioned.
Palmer then chose to collaborate with Billy Markus to make Dogecoin a reality. Dogecoin’s moniker and emblem are based on the face of the Japanese Shiba Inu dog breed. The inventors of a meme-inspired cryptocurrency intended to build crypto that could reach a bigger market than Bitcoin while still being “fun” to use.
Dogecoin was formally launched on December 6, 2013. Moreover, within 30 days, there were over a million visitors to Dogecoin.com.
Uses of Dogecoin
Dogecoin has had a devoted following for years, but the asset’s popularity catapulted Dogecoin price to dizzying heights in 2021. The coin itself, on the other hand, lacks many distinguishing traits that would imply it might replace the world’s main currency or store of value.
Why is it so difficult for Dogecoin to become a widely used crypto? The key explanation might be the scarcity of Dogecoin. The currency’s maximum coin production is unrestricted. Regularly, the mining of 14 million extra Dogecoins occurs, causing the asset’s value to rise. In comparison, Bitcoin, for instance, has a specified maximum production of 21 million coins, providing it with specified exclusivity.
On the other hand, people can use Dogecoin as a kind of currency for gifting or transactions, both online and offline. Its USD per coin pricing is substantially lower than other digital currencies, such as BTC, enabling consumers to operate with full amounts instead of parts of BTC.
On the one hand, DOGE looks to be more feasible as a commercial currency than Bitcoin, owing to Dogecoin’s lower unit cost, acceptance, and speed of operation. The coin’s ecosystem is also making DOGE more approachable to the general public. It is also possible that the asset might follow in the footsteps of many prior fads. By earning enormous public attention for a while but being unable to stay as a distinct long-term answer to anything.
The fundamentals of DOGE
On the technological front, Dogecoin has received continuous modifications throughout the years, which have been made available on the asset’s Github website.
Aside from its growth, Dogecoin’s fees continue to be a selling factor for the asset. In May 2021, the median Dogecoin service charge was over $2.52, which was a high point in terms of prior and following values. When compared to transaction costs observed in other cryptocurrencies, such fees are relatively minimal.
However, a tiny number of DOGE owners might create price fluctuations in the future. Despite its enormous production, Dogecoin boasts several wallets that hold a sizable fraction of DOGE’s entire currency supply. Approximately 50 percent of the entire quantity of the cryptocurrency is held in approximately 20 Dogecoin wallet addresses.
In terms of Dogecoin mining, considerable amounts of DOGE are projected to keep joining the system via mining, triggering inflation.
Should you put money into Dogecoin?
There’s no surprise here. Volatility is one of the biggest dangers when investing in cryptocurrencies. Bitcoin’s price reached an all-time high in December 2017 before plummeting by half in the first month of 2018. Dogecoin is no exception. Its value has climbed at a pace with that of other cryptocurrencies. Its recent 400% jump demonstrates that it is, at the very least, volatile.
Cryptocurrency is also not regulated in the same way that other assets traded on exchanges, like equities, are. Money recently noted that one of the main hazards of holding Bitcoin is that it may be outlawed. Just this year, Treasury Secretary Janet Yellen stated that the US government may need to curtail the use of Bitcoin, citing the fact that it is mostly used for illicit finance.
Investors must exercise caution. Experts recommend placing no more than 5% of your wealth into hazardous assets such as cryptocurrencies.