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What is Dogecoin?

BitForex Editor
Feb 07, 2021

Everybody seems to be asking the question of what Dogecoin is. Some are wondering how the tweet about Dogecoin became an actual coin. Whatever your question on Dogecoin maybe, the answer is right below. If you are wondering how it started and the current value of this coin, then keep reading to get the full details of this coin that is making waves now.

What is Dogecoin?

Before you assume Dogecoin is just the name of a coin with an image of a dog, look at this simple definition of this digital coin.

Dogecoin is simply a type of crypto coin just like bitcoin that can be used for digital transactions. The same blockchain idea of bitcoin is what forms the framework of Dogecoin. So, if you are listing out types of cryptocurrencies, you are not on the wrong track if Dogecoin is included. This is because Dogecoin operates using a centralized network and this implies like any other cryptocurrency that is not controlled by the government. Also, peer-to-peer transactions are not exempted from the package of this cryptocurrency. This, therefore, concludes that Dogecoin is a crypto coin that can be exchanged with fiat currency and not just an imaginary coin with no value.

Now, unto the next big question, "How did Dogecoin start?"

How it started

The way the Dogecoin was introduced wasn't the regular serious decision of one man or many people to make a new crypto coin. Instead, it was a joke about the doge meme and bitcoin when the meme was trending in 2013. That year, one of the co-founders, Jackson Palmer tweeted on his page about the coin in a sarcastic text. He was just trying to build a joke of the cryptocurrency when he talked about investing in Dogecoin. Then the tweet which was supposed to just be laughed at gained much positive recognition that was made Palmer think of the possibility of the coin.

He acted quickly on the responses and bought a domain on the coin before letting it out again for a potential developer like Billy Markus to be interested. Markus joined the trend by extending the Dogecoin to software that runs like Litecoin. Together these two are known as the founders of this coin as they launched it in December of that same year.

The movement

Before the founders of the Dogecoin could say "Jack Robinson", their coin already gained momentum. In just two weeks after it was launched, the Dogecoin market experienced an increase of more than 300% which was a good sign to crypto enthusiasts.

Gradually, Dogecoin was seen everywhere as it was an inflationary coin that had no limit to its production. At the beginning of 2014, the community of this coin was able to fund major projects and this was definitely a big deal to onlookers. The Jamaican bobsled team which was a major recipient of the donated funds surely has plenty of appreciation to make after the Olympics.

In fact, at a point in 2018, Dogecoin had a market capitalization of over $2billion which was massive for a coin that was started as a joke. But it experienced a major drawback in 2015 with the issue of the fraudster, Ryan Kennedy, which made the Dogecoin stagger till 2017. Combined with the fact that the two co-founders went off the market, it became not too good news for the community.

The current value

Even with the hiccups, the year 2020 saw a greater light in the Dogecoin market as the world's richest man made a statement on it. Just one word from Elon Musk caused a rise of 20% to the Dogecoin. Because of this influence, the Dogecoin now has a value of 0.028264 US dollars. Even though this value is still low, it is gradually taking a stance as one of the most sought cryptocurrencies.

The Future of Dogecoin

Although the founders aren't saying anything about the coin, the good news is that the coin has a community of loyalists. With a massive number of people using Reddit and tipping their accounts with Dogecoin, there is a bright future for the coin after all. Crypto enthusiasts are seeing an increase of close to 60% if the market continues moving steadily. Plus, if big-time influencers continue dropping words about it, it is bound to skyrocket to a greater value.

FAQ on the Dogecoin

To understand this coin more, look through these three FAQ and see replies that also answer your question

How secured is the Dogecoin?

The coin is operated under blockchain technology which has been known over the years to be safe. Nevertheless, it still has some loopholes which can be avoided. This loophole was used by the convicted Kennedy to extort money from people because he was handling a bigger part of the Dogecoin. If this doesn't happen, then it is safe as a bitcoin.

How is the Dogecoin mined?

Dogecoin can be mined in two distinct ways. One is called the single mining where an individual can mine(or dig) the Dogecoin using different codes and software. The second is the community mining. Dogecoin allows for different community. So, each community can mine together and share the mined Dogecoin equally. But if you want to buy it without having to go through the mining process, you will have to buy bitcoin then exchange it. Several platforms allow that.

How do I own a Dogecoin wallet?

It requires a few steps to owning your Dogecoin. You just have to download the doge wallet from the play store or apple store and follow the procedure. You will be required to launch the wallet as soon as it is downloaded to get the wallet handy.  It is quite straightforward like any other crypto wallet.

Conclusion 

No doubt, Dogecoin truly has a spot in the crypto market and would not be behind in 5 to 10 years from now. So, even after gaining this substantial amount of knowledge on Dogecoin, it is wise to secure a spot now. You never can tell if Dogecoin will reach heights like bitcoin in the future. Invest today!

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