When choosing which cryptocurrency to invest in, a few questions that run through your mind are, what is its use, what is its value, how do you mine it. With dogecoin, these questions would not help you in picking it as it is quite different from the rest of the coins.
Dogecoin is a currency built from the Bitcoin open source code with a focus on being a satirical coin. It has identical characteristics to Litecoin as it was created as a fork of Luckycoin which was a fork of Litecoin. The major similarity is the use of the Scrypt algorithm for both Litecoin and Dogecoin.
The Beginning of Dogecoin
Dogecoin was built in 2013 when there was a rush to create new cryptocurrencies. Bitcoin was the dominant and most promising at this time although many cryptocurrencies were being developed and given very huge valuations, due to the success of Bitcoin, which seemed unrealistic.
Dogecoin started as a joke in December 2013 when a young Australian Marketer called Jackson Palmer decided to combine two hot topics into one. The Doge meme and the cryptocurrency concepts. The Doge meme was a photo of a dog called Shiba Inu which had become very popular whereas the cryptocurrency frenzy was just beginning. Jackson created an image of the Shiba Inu as a symbol of his new cryptocurrency the Dogecoin.
Although this started just as a joke due to the fact that Jackson did not really understand the cryptocurrency concepts, this new currency soon good some attention due to its name and after a software engineer at IBM called Billy Markus joined the wagon.
These two individuals combined their ideas and decided to create a coin that would act as a satirical commentary on the unrealistic valuations and the hype of all the new creations that were taking place. This would become a ‘fun’ currency which would be made more accessible to individuals than any other currency and would also be used as an online tipping currency.
These factors combined with its use of the Doge meme would catapult this coin to popularity as people would find it very easy to acquire and use a low priced and stable currency for their online transactions. Jackson Palmer and Billy Markus had purposefully made sure that the currency was oversupplied in hundreds of billions to ensure that every single unit had a low price and to make it available to many cryptocurrency users.
The Evolution of Dogecoin
The speed at which Dogecoin gained popularity was tremendous. In January 2014, Dogecoin had become a regularly used coin for tipping purposes by almost all Reddit users. This enabled Palmer, in line with the goals of Dogecoin, to push for a charity drive to sponsor a Jamaican bobsled team for the 2014 Winter Olympics. A total of $129,000 was donated to the team.
The ‘fun’ aspect of Dogecoin would soon be replaced with investments as the value of the currency started rising. The coin would be used as an exchange currency as it was cheap and fast than other currencies especially bitcoin. It was easy to buy Dogecoin from Bitcoin then do a transaction which would, in turn, be exchanged back to Bitcoin.
Dogecoin was however hit by a scam when an individual called Alex green created a cryptocurrency exchange called Moolah designed for buying and selling Dogecoin by the community. This was a very effective introduction which was welcomed by the community, except Markus who had earlier left Dogecoin, but it soon crumbled when Moolah went bankrupt after a total investment of over $300,000 from the community.
It was later revealed that Moolah was being run by a scam artist known as Ryan Kennedy who would later face trials in the UK.
Dogecoin continues to be used majorly as an exchange and speculative currency. The low price for each unit makes it a widely accepted currency as it offers more efficiency compared to other currencies in the market.
How to get Started
Dogecoin uses its own walled called MultiDoge which can be downloaded from its website for both mobile phones and desktop. It supports all operating systems making it easily accessible. Once the download and installation are complete, you can easily get Dogecoins by exchanging bitcoins for them or being tipped for participating in the online Dogecoin community.
Dogecoin is well known for being welcoming for new cryptocurrency users and has introduced ways to give individuals small amounts of the currency as an introduction to the coin. This is done through faucets which are websites which facilitate this process. An example of such a website is Dogfaucet.com.
Any acquired Dogecoin can be stored in the MultiDoge wallet which can be used to exchange them for other currencies easily.
The current supply of Dogecoin stands at 114,601,845,018 with a value of $0.003448 for each unit. This gives it a market cap of $395,175,812 with its highest ever market cap stands at $1.9 billion in January 2018. This trend which saw the prices unmoved between early 2014 and late 2017 shows that Dogecoin has a potential of becoming the most widely used and stable coin. This comes from the lessons learnt within the few years of existence and the push for the coin to maintain its intended purpose of being a ‘fun’ coin.