Dogecoin was the first cryptocurrency to reach. The public is now a widely recognized asset in the cryptocurrency community. This guide focuses on Dogecoin’s role in the cryptocurrency ecosystem, its origins, and some of its key price drivers.
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What Is Dogecoin?
Dogecoin was created as a joke but was eventually found. A purpose as an approachable alternative to Bitcoin. The Dogecoin community has catapulted DOGE to cult status.
Less technical speculators who value a cryptocurrency’s alternative-pop status may find it an entry point into the crypto world. Dogecoin is a crypto coin based on Luckycoin (which is, in turn, based on Litecoin).
Dogecoin is an approachable alternative coin to Bitcoin, Litecoin, and others. There aren’t any unique technical aspects that set it apart from the pack.
The cryptocurrency hasn’t seen any major updates since 2015, although it can benefit from improvements to the Litecoin code. Keep in mind that the true value of Dogecoin lies in its strong and vibrant community.
Eight Interesting Facts About Dogecoin
1. Dogecoin was originally found as a joke. As Jackson Palmer started to get more requests for it, he began working with programmer Billy Markus to turn his idea into a reality.
2. Dogecoin is a very lighthearted and approachable form of cryptocurrency. That appeals to people who are not interested in the complexity of other types of currency. It even shares the same name as a popular internet meme!
3. Dogecoin has helped to fund charitable projects and supported NASCAR. It also has one of the largest communities after Bitcoin.
4. Today, many people tip others with Dogecoin instead of “liking” to recognize their work and express appreciation. It’s like a “like” on steroids – with more impact.
5. Founder of Dogecoin, Jackson Palmer, left the project for a short period of time and gave other developers time to further develop the platform. After this, he came back and continued his work.
6. As of May 7, 2021, according to CoinMarketCap.com, the highest market cap was over $88 billion.
7. In 2021, digital currencies become more accessible and closer to being able to use them on the Ethereum network as they become ‘wrapped up’ into ‘coins’. In this case, DOGE is changed into an ERC-20 token.
8. RenDOGE is an exact representation of Dogecoin on the Ethereum blockchain. Ren has been designed to enable cross-chain operability so your asset is easier to reach than ever before.
9. In 2021, Dogecoin saw a surge in its price. This was partly due to the influx of users who were chasing GME-style highs and Elon Musk’s tweet about it. It was also boosted by popular YouTuber JackSepticEye tweeting about it.
What’s Different About Dogecoin?
Dogecoin was created around six months ago and has exploded in popularity. This property is generally seen as a good thing since most people buy Dogecoin from other buyers. Rather than using it as a currency within their own country’s economy.
It is an inflationary cryptocurrency, but there are also a number of cryptocurrencies with a hard coin supply limit. Bitcoin, Cardano, and Ethereum are just three examples of this.
There is a transitional period where mining does not generate the same amount of returns. However, once peaked, it is typically profitable for miners to keep mining.
This idea was worth exploring in theory but led to a lot of controversy and disagreements. One issue is that if this suggestion were put into action, transaction times would be very long. There wouldn’t be any incentive to process network transactions.
Transaction fees, blockchain size, and verification speed are all affected by mining or minting done on the network.
Digital currency makes it easy for miners to get paid for their work. They do, and that’s why there has been an increased use of virtual currency.
Bitcoin makes it easy for people — even those without mining farms — to receive payment for their work. It requires little effort on your part to just plug in. A computer in and be paid for whatever work you do.
Dogecoin is a digital currency. That can only be mine or earned by providing content for the platform. You could earn computing power. This is what the currency was designed to do, but an inflation-based approach was also designed to keep it. The overall number of coins is steady at 100 billion.
The Dogecoin Community
Dogecoin cannot be understood without understanding the bond. That enthusiasts have with this currency.
Dogecoin is an independent cryptocurrency and has been around for about a year. Much of the community, particularly older members, prefer to focus on its use as a currency and not speculate on its potential prices.
Despite their pessimism, people are still waiting for the sky to rain dogecoin so they can start trading it! Even a year ago Doge prices were around $0.68 in the first quarters of 2021.
What Does The Creator Of Dogecoin Say? Even Dogecoin’s creator, Jackson Palmer, believes Dogecoin’s success demonstrates how far cryptocurrency has strayed from its original goals:
A Brief History Of Dogecoin
On November 27, 2013, Jackson Palmer made a joke that would lead to the birth of a new cryptocurrency he said:
In just over a week, on December 6th, people could trade Dogecoin for real money. What began as a joke had turned into something serious.
In late January and early February 2021, the price of Bitcoin on the Wall Street Bets subreddit rose with an influx of users. This led to a rise in crypto prices which briefly reached 7.2¢, before quickly falling back down to normal levels.
How Is Dogecoin Mined?
Central banks nowadays create money by using a computer to put ink on paper.
Unlike many others, cryptocurrencies like Dogecoin are decentralized and produced. Their highly active community. This offers more flexibility than centralized methods of creating new tokens.
What Is Auxiliary Proof-of-Work (POW)?
Dogecoin uses the same technology as Litecoin and relies on Auxiliary Proof-of-Work (IPO) to produce the currency. LTC miners have found it much harder to find blocks using this technology, which led to the creation of Dogecoin.
When Litecoin was first released, it had one big issue: it would take more work than expected to process transactions and confirm new blocks. To fix this, Litecoin miners were able to process Dogecoin transactions by using their computing power in order to solve complicated equations.
A reward system where you earn DOGE as payments for solving. The equation is being used in the Dogecoin network. This helps maintain the health of the network and also serves to motivate miners to solve equations for more DOGE.
You can incentivize miners to devote computing power in order to complete transactions on the Dogecoin blockchain or you can regulate the number of dogs that are created.
What Drives the Price of Dogecoin?
While cryptocurrencies are highly volatile and prone to big surges, the stability of Dogecoin has allowed for stability in its price. Dogecoin is on another level and even experienced a bit of turbulence within its own history.
Dogecoin has been growing in popularity due to media attention, especially given its use of memes and cultural influence. The coin saw a surge in value as many outlets began to pick up the story that Doge had “hit a market cap” earlier this year.
Elon Musk was partly responsible for the DOGE price hike in July 2020 and for good reason. His tweets are thought to be one of the biggest influencers of DOGE today.
“The Wallstreetbets GameStop Phenomenon” occurred when Dogecoin saw a major spike in media attention. That same year, the market capitalization of DOGE skyrocketed and reached new all-time highs at over $0.70 per coin.
These kinds of stories tend to lead to new traders pouring money into a currency, often due to the fear of missing out (FOMO). However, these surges are often followed by sharp crashes as large-volume traders engage in profit-taking.
Updates To Dogecoin’s Features
Dogecoin has not seen any significant updates starting around 2015, so any talk of new highlights could well prompt an expansion in costs. You ought to watch out for the Dogecoin Reddit account trying to expect any new elements or administrations of Dogecoin.
That intends to use Dogecoin as an installment technique. These sorts of declarations will more often than not prompt an expansion in cryptographic money’s worth. The latest eminent effect on DOGE has been the REN undertaking’s cross-chain liquidity arrangement.
That permit renDOGE to be gotten to on the Ethereum blockchain. The weighty mechanical lifting was not done on Dogecoin’s side.