What Is dogecoin and How Does It Work?

For the most of its history, Dogecoin was seen as a humorous “memecoin” treasured by its community — but with little value. That changed in 2021: Dogecoin became one of the top ten cryptocurrencies by market valuation in April, with a total value of more than $50 billion, despite the fact that each coin is only worth a few cents (see the current price).

Is that even possible? Because there are a lot of Dogecoins in circulation. Dogecoin was established to be plentiful, unlike Bitcoin, which was designed to be limited and resistant to inflation. There are around 130 billion DOGE in circulation, with miners producing 10,000 every minute. (By comparison, there are over 19 million bitcoins in circulation, with just 12.5 BTC mined every 10 minutes or so.)

Dogecoin (pronounced “dohj coin”) was created as a fun, low-stakes Bitcoin alternative, and abundance is a crucial aspect of the concept. DOGE attracted an enthusiastic online community almost immediately after its inception in late 2013, and users have used it for everything from rewarding strangers for good Reddit comments to helping send the Jamaican bobsled team to the 2014 Winter Olympics in Sochi.

History of the Dogecoin

Bill Marcus and Jackson Palmer, two software developers from IBM and Adobe Systems, respectively, designed Dogecoin in late 2013. It was built using Litecoin’s open-source technology, which was a fork of the Bitcoin blockchain. Its main goal was to raise public awareness about the capabilities of blockchain technology.

The volatile crypto has grown more than 4,000 percent in 2021 alone, thanks to the support of a massive online community that includes Elon Musk, Mark Cuban, and Snoop Dogg, with some analysts projecting the price to hit $1 by the end of the year.

The online community has also influenced notable headlines, such as the $50,000 fundraiser to send the Jamaican Bobsled Team to the 2014 Winter Olympics after the team qualified but could not afford to participate. In 2014, they also contributed $55,000 to a NASCAR Sprint Cup Series driver, Josh Wise.

What distinguishes Dogecoin from other cryptocurrencies?

DOGE has a market value depending on supply and demand, just like any other asset. Given the large and ever-increasing supply, demand has had to skyrocket to get prices to where they are now.

That happened in the first months of 2021, when prices soared by around 7,000 percent, thanks to a combination of retail investors on Reddit (including the wallstreetbets subreddit, which sparked the “memestock” craze), the broader crypto boom, and months of seemingly tongue-in-cheek tweets by Tesla founder Elon Musk, punctuated by his appearance on Saturday Night Live in May 2021.

Fast-rising DOGE prices in 2021 drew a lot of media attention (as well as social media posts), which for a while produced a cycle that attracted new investors and drove up prices even further. FOMO (or “fear of missing out”) attracts a slew of new traders whenever an asset sees such spectacular gains. DOGE, on the other hand, remains a very volatile cryptocurrency, and there is no guarantee that it will rise or fall in value in the future, just like any other investment.

Where did Dogecoin originate?

In late 2013, software developers Billy Marcus and Jackson Palmer, acquaintances from Reddit who had never met offline, created Dogecoin as a prank. In their online group, they blended two popular subjects at the time: the emerging cryptocurrency Bitcoin and a meme featuring a Shiba Inu and a misspelt form of the word “dog.”

Dogecoin took off quickly, much to the astonishment of its developers, with over a million visitors to dogecoin.com in the first month. Dogecoin was (and still is) a full-fledged cryptocurrency with its own blockchain and a mining system similar to that of Litecoin, which added to its amusement. Speculators have recently become interested in DOGE because of its historically low prices (for much of its life, you could purchase it for fractions of a dime) and abundance.

What Is The Best Way To Invest In Dogecoin?

If you’ve been following all of the excitement around GameStop’s (GME) incredible stock jump and then crash, you’ve definitely seen some relevant media coverage from Elon Musk.

Musk, on the other hand, was not only interested in GME. He’s also curious about Dogecoin (DOGE). And, thanks in part to Musk’s remarks, Dogecoin has recently experienced a tremendous spike in value.

But what is Dogecoin, exactly? And, like GME, will it fizzle out? We’ll try to explain what Dogecoin is all about in this article.

Where Can I Buy Dogecoin?

Dogecoin (DOGE) may be purchased on cryptocurrency exchanges such as Kriptomat, where you can register for free and acquire Dogecoin. Learn how to obtain DOGE and how to purchase Dogecoin.

What is the Best Way to Sell Dogecoin?

You can sell Dogecoin on cryptocurrency exchanges using the same cryptocurrency exchange where you bought it. Traders use Kriptomat to sell Dogecoin and profit from price fluctuations by calculating the difference between the purchase and sell Dogecoin prices.

What Is the Purpose of Dogecoin?

Dogecoin has a large community of users that mostly use DOGE to tip online content providers. Dogecoin is also utilised as a payment method for quick blockchain-based transactions with cheap costs, which is frequently arranged within the DOGE community.

Is Dogecoin a Practical Joke?

Because the DOGE developers adopted the picture of the famous Shiba Inu meme as their logo, Dogecoin was initially regarded as a joke. DOGE, on the other hand, has a robust community, quick block production, and rapid transaction, putting it among the best cryptocurrencies.

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