With cryptocurrencies being so well-designed and thought by people who have been developing them for years, you wouldn’t expect from to emerge, all thanks to a simple meme.
However, there is, and it even has the name of the meme itself.
We are sure you already know we are talking about Dogecoin, and in case you weren’t familiar with the fact that it all took place due to an initial joke, the title of the article gave you a spoiler.
Now, if this is a coin that emerged out of a meme, why are people taking it so seriously to the point of making it one of the top cryptocurrencies you should pay attention to besides the fact that Elon Musk really favors it?
Many factors and elements influence the popularity and current status of the coin, so we can say (for now) that it is more than a joke, and it is worth knowing about it when you consider investing in cryptos.
Therefore, if you are eager to know more about it, we will be reviewing its history and use so you can have a great picture and idea of its functionality and worth.
Answering Your Doubts: What Is Dogecoin?
As much as we would love to make it as simple and less technical as possible, it is a bit hard to come up with an explanation that makes cryptocurrencies simple to understand.
However, we are always doing our best to make it understandable for most people. Thus, expect this meme coin to be a bit easier than the rest.
Dogecoin (DOGE) is a peer-to-peer, open-source cryptocurrency like most of the coins are available in the industry.
It is considered an altcoin and an almost sarcastic meme coin since its launch in December 2013. While featuring and having a Shiba Inu dog as its logo, people find it more interesting to invest in it for this reason alone.
Even when it was created seemingly as a joke, Dogecoin’s blockchain still has merit. Its underlying technology is derived from Litecoin and notable features of Dogecoin, which uses a script algorithm, are its low price and unlimited supply.
Yes, you read that right; DOGE doesn’t have a limit when it comes to supply, unlike Bitcoin or most cryptocurrencies you can find.
Dogecoin miners make 10,000 DOGE per block, and new blocks are added every minute.
This means that 144,000 new tokens are created each day and flood into miners’ wallets.
Dogecoin’s History – From Beginning to This Date
For starters, the creator of this meme coin is no other than Jackson Palmer, a product manager at Adobe Inc.’s Sydney office, Australia.
Unlike what you might think, he didn’t create Dogecoin to join the industry but rather satirize the hype around cryptocurrency.
Palmer is described as a “skeptic-analytical” observer of emerging technology. His initial tweets about his cryptocurrency venture were tongue-in-cheek. But after getting positive feedback on social media, he bought the domain dogecoin.com.
The beginning of DOGE doesn’t end there. Instead, we jump to Portland, Oregon, where Billy Markus, a software developer at IBM who wanted to create a digital currency, was having trouble promoting his efforts.
During this time, he came across Dogecoin and decided to reach out to Palmer to get permission to build the software behind the actual coin.
As a result, Markus started to develop it and based Dogecoin’s code on Luckycoin. Luckycoin is itself derived from Litecoin.
In the beginning, a randomized reward was offered for block mining. However, that was later changed to a fixed reward in March 2014. Dogecoin is a proof of work coin that uses Litecoin’s scrypt tech.
The coin was launched by Markus and Palmer on December 6, 2013, thanks to the efforts they put into the task.
The value of Dogecoin rose over 300% two weeks later, possibly due to China prohibiting banks from investing in cryptocurrency.
In simple words, the coin was created by those two founders, and since then, they have been managing it to obtain better results.
To make sure Dogecoin was a success, they marketed it as a “fun” version of Bitcoin by using the Shiba Inu dog as its logo.
Dogecoin’s casual presentation was appropriate for the growing crypto community and the target audience in terms of the online community on platforms like Reddit, Twitter, and other media.
Dogecoin is an “inflationary coin,” while cryptocurrencies like Bitcoin are deflationary because there’s a limit on the number of coins created and available.
Every four years, Bitcoin releases a specific amount into circulation via mining rewards and it is always halved, and its inflation rate is halved along with it until all coins are released.
Instead, DOGE continuously releases more and makes sure it is possible to access them without having issues.
Moving on to a few years later, Dogecoin’s price soared with the rest in the crypto-verse during 2017’s bubble, but it then fell along with the rest in 2018.
Dogecoin’s value increased along with that of the rest of the crypto market in summer 2019. When Binance listed the coin, fans couldn’t hide their excitement, while Elon Musk, Tesla CEO, showed his support and made the currency even more valuable.
How Do People Spend DOGE?
Here’s the part that most people don’t understand: how the coin is spent and used.
After all, when you have a coin that looks like a joke, it is hard to figure out how someone would be able to use it. However, it isn’t hard to understand the process in this case.
Dogecoin’s low price makes it an ideal choice for small payments that people make daily.
Besides, this altcoin is a more secure method of paying than other cryptocurrencies, and since Dogecoin works on a fast blockchain, there aren’t problems with the transactions. Instead, they are fast, and businesses are more likely to accept the coin, thanks to the low transaction cost as well.
If you are still in doubt, this is how you can use it in specific:
- Regular payments.
- Reddit tipping online content creators.
- Donate to charities.
Dogecoin can be used to make online purchases at merchants that accept it, and unlike what you might think, you can find merchants like those from online travel agencies, videogame retailers, and web hosting providers.
When it comes to tipping, people use it for content creators on social media platforms such as Reddit or Twitter, and the tipsters can use the altcoin to buy or invest.
Overall, you can use it to purchase food, household supplies, and even domain names.
It was created to dispel the negative stigma associated with cryptocurrency despite the joke the creator was aiming for initially. However, one goal remains: the creator, Palmer, wants to counter the greed in the cryptocurrency community.
Investing in Dogecoin or Aiming for More?
Among all the cryptocurrencies out there, we actually consider Dogecoin the best one. Why? Because it is popular among the community, which means it is very hard for its value to change in terms of going too high or too low.
What we are trying to say is: It is the most stable crypto you will find right now.
We personally love it and invest in it quite regularly, considering how more stores accept it and after the inclusion in Binance.
Therefore, we would highly recommend investing in it but not as the main source of income in terms of purchasing DOGE to see how it increases but rather to have an alternative.
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