Dogecoin (DOGE) definition

What is Dogecoin?

Dogecoin (DOGE) is a peer-to-peer open source cryptocurrency. It is considered an altcoin and an almost sarcastic meme coin. Dogecoin was launched in December 2013 and has the image of a Shiba Inu dog as its logo.

Though seemingly created as a joke, Dogecoin’s blockchain still has its place. The underlying technology is derived from Litecoin. Notable features of Dogecoin, which uses an encryption algorithm, are its low price and unlimited supply.

The central theses

• Dogecoin is an open source cryptocurrency founded in 2013 by Jackson Palmer and Billy Markus.
• Dogecoin originally started out as a joke based on a popular meme featuring a Shiba Inu (a Japanese breed of dog).
• It’s based on Litecoin and has the same technology behind its proof-of-work.
• Dogecoin has a loyal community of supporters who trade in it and use it as a tip on social media content.

Understand Dogecoin

Dogecoin started out as a kind of hoax, but after it was created it gained a following. By the end of 2017, it participated in the cryptocurrency bubble, which significantly increased the values ​​of many coins.After the bubble burst in 2018, Dogecoin lost much of its value, but there is still a core of supporters trading it and using it to post content on Twitter and Reddit.

Users can buy and sell Dogecoin on digital currency exchanges. You can keep your Dogecoin on an exchange or in a Dogecoin wallet.

The history of Dogecoin

At the beginning

Jackson Palmer, a product manager at Adobe Inc.’s Sydney, Australia office, founded Dogecoin in 2013 to ridicule the hype surrounding cryptocurrencies. Palmer has been described as a “skeptical-analytical” observer of emerging technology, and his first few tweets about his new cryptocurrency company were ironic. However, after receiving positive feedback on social media, he bought the dogecoin.com domain.

In Portland, Oregon, Billy Markus, a software engineer at IBM who wanted to develop a digital currency but was struggling to promote his efforts, discovered the Dogecoin craze. Markus reached out to Palmer for permission to develop the software behind a real Dogecoin.

Markus based the Dogecoin code on Luckycoin, which itself is derived from Litecoin, and initially used a randomized reward for block mining, but this was changed to a static reward in March 2014. Dogecoin uses Litecoin Scrypt technology and is a Proof-of-Work (PoW) coin.

Proof of Work (PoW) forms the basis of many cryptocurrencies and enables a secure, decentralized consensus.

Palmer and Markus launched the coin on December 6, 2013. Two weeks later, on December 19, the value of Dogecoin rose 300%, possibly because China banned its banks from investing in cryptocurrency.

The rise of Dogecoin

Dogecoin marketed itself as a “fun” version of Bitcoin with a Shibu Inu (Japanese dog) as its logo. The relaxed presentation of Dogecoin matched the mood of the burgeoning crypto community. The encryption technology and unlimited supply were an argument in favor of a faster, more adaptable, and more consumer-friendly version of Bitcoin.

Dogecoin is an “inflationary coin” while cryptocurrencies like Bitcoin are deflationary as the number of coins that can be created is limited. Every four years, the amount of Bitcoin that is brought into circulation via mining rewards is halved and thus the rate of inflation is halved until all coins are released.

In January 2014, the Dogecoin community donated 27 million Dogecoins worth approximately $ 30,000 to fund the Jamaican bobsleigh team’s trip to the Sochi Winter Olympics. In March of this year, the Dogecoin community donated $ 11,000 worth of Dogecoin to help build a well in Kenya and $ 55,000 of Dogecoin to sponsor NASCAR driver Josh Wise.

Controversy is taking Dogecoin some fun

Dogecoin’s free-running fun lost some of its hilarity in 2015 as the crypto community in general got more serious. The first sign that everything was not all right with the Dogecoin community was the departure of Jackson Palmer, who said that a “toxic community” had emerged around the coin and the money it produced.

One member of this toxic community was Alex Green, aka Ryan Kennedy, a British citizen who started a Dogecoin exchange called Moolah. Alex Green (his pen name) was known in the community as a lavish drinker who allegedly mistakenly donated $ 15,000 instead of $ 1,500 to the NASCAR fundraiser.

Green’s exchange convinced members of the community to donate large sums to help start his exchange, but it was later revealed that he had used the donations to buy more than $ 1.5 million in Bitcoin, which was in turn, gave him a lavish lifestyle. Separately, Kennedy was convicted of multiple rape in 2016 and sentenced to 11 years in prison.

Dogecoin during and after the 2017-2019 crypto bubble

Dogecoin soared in value with the rest of the cryptoverse during the bubble that peaked in late 2017 and fell with the rest of the cryptoverse in 2018.

Dogecoin surpassed a market cap of $ 1 billion for the first time in the 2017/18 Cryto bull run.

In the summer of 2019, Dogecoin saw another surge in value along with the rest of the crypto market. Dogecoin enthusiasts were happy when the Binance crypto exchange listed the coin, and many thought Elon Musk, CEO of Tesla, Inc. (TSLA), endorsed the coin in a cryptic tweet.

Dogecoin in the 2020s

Dogecoin’s infrastructure was not a key cause for concern for the coin’s developers, who are still volunteering. However, one reason it continues to operate and trade is its active community of miners. As Zachary Mashiach of CryptoIQ puts it:

Numerous Scrypt miners still prefer Dogecoin (DOGE) over other Scrypt PoW cryptocurrencies. In fact, Dogecoin (DOGE) hash rate is around 150 TH / s. This is just below the Litecoin (LTC) hash rate of 170 TH / s, likely because Dogecoin (DOGE) can be merged with Litecoin (LTC), meaning miners can mine both cryptos at the same time with the same job. Essentially, virtually everyone who mines Litecoin (LTC) also chooses Dogecoin (DOGE), as merging Dogecoin (DOGE) increases profits.

Musk also endorsed Dogecoin in 2021, tweeting in May that he is working with the coin’s developers to improve transaction efficiency. Earlier this year, the SpaceX founder even conducted a social media survey asking if Tesla should accept Dogecoin as a form of payment. In October, cinema chain AMC Entertainment Holdings, Inc. (AMC) announced that it would be accepting Dogecoin for purchases of digital gift cards by the end of the year, adding even more value to the meme-based cryptocurrency.

On October 8, 2021, Dogecoin market capitalization was 10, with a market capitalization of 31.9 billion US dollars, significantly higher than last year with 48 and 339 million US dollars market value.