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Dogecoin: Will it Ever Get to Bitcoin’s Height?

BitForex Editor
Feb 05, 2021

Of all the cryptocurrencies obtainable in the financial world today, Dogecoin is one of the cryptos that despite its hilarious and seemingly “unserious” starting, it is fast becoming one of the most valuable cryptocurrencies in the world right now.

For a currency that started as a joke; from a funny meme, this cryptocurrency has one of the largest user communities of all the cryptocurrencies. Not only that, this cryptocurrency has an edge over all the other currencies; and that edge is the fact that Dogecoin doesn’t have a maximum limit that can be created and circulated.

Based on this edge, and the fact that Dogecoin rose to over 1,100% gain in the morning of January 8, 2021, and in the quote of a financial analyst, Dogecoin is being presumed to be the next Bitcoin. According to The Tie, Dogecoin has raised the bar and surpassed the previous set marks by Bitcoin.

Now, the next question on the lips of everyone is “Will Dogecoin become as great and high as Bitcoin?

What do you think? Do you believe that Bitcoin would soar and grow to become as great as Bitcoin? Hold on a bit before you give your answer as we go through a few facts about Dogecoin, starting from the inception of the cryptocurrency.

History

Dogecoin was created in the year 2013. This history and purpose of this cryptocurrency don’t read like the history and purpose of the other cryptocurrencies. Unlike other cryptocurrencies that started strictly as a serious thing, Dogecoin started as a joke!!!

Yes, you read right!

Dogecoin began as a joke that was initiated by Jackson Palmer, and here is how the story went:

In the year 2013, Jackson Palmer created Dogecoin as a bid to make a jest of the rise and media buzz that was growing around the cryptocurrencies at the time. And so, he made a post where he joined the trending Shibu Inu doge from the viral dog meme with the word “coin”, as regards the cryptocurrencies.

The post (tweet) that Palmer shared reads in verbatim; “Investing in Dogecoin, pretty sure it is the next big thing”.

What he thought was going to be just a passing joke, gained positive feedback on the internet, and this pushed him to further buy a domain named Dogecoin.com.

While he was doing all that, an IBM software developer named Billy Markus, who had a flair for digital currency creation saw the attention that Palmer and his Dogecoin trend was getting from social media, and seeing a possible answer to his prayer, reached out to Palmer, and the rest we can say is history, as we now have a real digital currency named Dogecoin which was launched by the duo on the 6th of December, 2013.

How Does the Dogecoin Work?

Created to be a joke, Dogecoin is designed to serve as a friendly difference from what was obtainable with the rest of the cryptocurrencies, which appeared rigid, boring, complex, and cold.

And unlike the rest of the cryptocurrencies which are deflationary (that is there is a limit to the mining and supply of these coins), the Dogecoin is an inflationary coin (that is it has an infinite number that can be mined and circulated).

Besides that, Dogecoin is a fork of lucky coin, which in turn is a fork of Litecoin, which in turn is a fork of Bitcoin, and just like the Bitcoin, Dogecoin network relies on block miners to create and validate transactions.

Dogecoin block miners experience a little difficulty while mining and the reward value of every mined block are about 10,000 Dogecoins.

Dogecoin Versus Bitcoin

As earlier stated, there has been quite a lot of speculations about Dogecoin, and if it was headed towards getting to the same height as Bitcoin, and even surpassing Bitcoin. As a result of these speculations, this has brought about a comparison between the two cryptocurrencies, and shared below are some of the points drawn in favor of and against both cryptocurrencies.

Pros

1. Dogecoin can be mined without the use of expensive and high-tech equipment unlike what is obtainable with Bitcoin. To mine Bitcoins, there is a need for special software and computers to carry this out.

2. At the moment, the available supply of Dogecoin in circulation is 128,220,000,000 while that of Bitcoin is about 18,618,100; which means that there is a huge supply of Dogecoin right now than Bitcoin.

This means that while Bitcoin might not circulate the number of cryptocurrency users, Dogecoin would do that conveniently.

3. Dogecoin has a block time of 60 seconds, i.e. blocks are created every 1 minute. While the block time of Bitcoin is 10 minutes, i.e. blocks are created 6 times in 60 minutes.

4. Transactions using Dogecoin is efficient and faster than transactions using Bitcoin. in less than 10 minutes, you can conduct transactions nine times higher than the number of time that you can transact with Bitcoin.

5. Dogecoin can be used to transact businesses practically on the internet such as buying goods and services, while Bitcoin is used to transact large-scale businesses.

6. Unlike Bitcoin that has a reward value of 12.5 BTC per block, Dogecoin’s reward value is 10,000 Dogecoins.

Cons

1. One of the demerits of the Dogecoin against Bitcoin is that presently the value of one Dogecoin to 1 dollar is 0.0315 while the value of one Bitcoin to one dollar is 36584.70.

2. Dogecoin focuses on giving, hence you’d read words like ‘tip’, ‘help’, and ‘community’ while dealing with this currency. But the Bitcoin deals with more serious financial systems, and that is why words like ‘money’, ‘time’, and ‘transaction’ are popularly used while dealing with this currency.

3. Dogecoin doesn’t have a predictable and constant value, it is always fluctuating, unlike Bitcoin.

Looking closely at these listed points, a lot are visible to the eyes, but what is not visible is if, with all these good points, the Dogecoin can meet, beat, and surpass Bitcoin in future years. Can these good points increase the value and crave for Dogecoin? Will Bitcoin’s limited supply bring an end to the reign of Bitcoin and give the likes of Dogecoin a chance to shine?

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