All of us are familiar with the doge meme - the face of an adorable Shiba Inu surrounded by Comic Sans thought bubbles which read things like ‘such awesome’, ‘much wow’ and variations of these sarcastic-seeming phrases. We are familiar with Bitcoin as well - the first cryptocurrency to have ever existed and also, the most popular virtual currency right now. The combination of two - Dogecoin, is a hilarious parody of Bitcoin and surprisingly, people are using it.
What is Dogecoin?
Dogecoin came into existence when an American programmer from Portland, Oregon, and an Australian marketing specialist, having never met before, successfully combined two of the greatest things on the Internet - the doge meme and Bitcoin. What started out as a joke cryptocurrency in 2013 soon gained a considerable amount of traction in terms of popularity, market capitalisation, and the number of coins in circulation.
Dogecoin can be considered to be a variation of Litecoin and is programmed in Scrypt language. In fact, Dogecoin is just like every other prominent cryptocurrency like Bitcoin and Ether - it’s governed by the blockchain technology and all transaction records are stored in the public ledger. Furthermore, Dogecoin employs proof-of-work model to achieve the consensus which means that it is possible to mine Dogecoins. Dogecoins can be used to perform transactions in a decentralised manner over the Dogecoin blockchain.
The idea behind Dogecoin is for it to not to be taken that seriously or surround itself with the dubiousness that comes with Bitcoin. Dogecoin is more of a way to appreciate people and say kudos, and same has been observed on Reddit and Twitter.
This has been made possible owing to the meme-like nature of the coin and its massive supply - more than 100 billion as of April 2018. This massive supply at a low-entry point serves to appeal to a wider audience who are intrigued by the idea of cryptocurrency. It truly fits the phrase - ‘very currency - many coins - much wow.’
Another thing to consider here is that Dogecoin is inflationary, that is, there is no cap on the number of Dogecoins that will be in circulation. This is in complete contrast to other cryptocurrencies in the market which has a fixed cap on its supply.
The time required to mine 1 block on Dogecoin blockchain is one minute and the reward for the same is fixed at 10,000 Dogecoins. It is expected that more than 5 billion coins will be produced every year.
Where to buy Dogecoin (DOGE)?
Dogecoin is an altcoin and can be bought on any of the major cryptocurrency exchanges with Bitcoin, Ether, or Litecoin (LTC). Some of the popular exchanges like Changelly and ShapeShift. Alternately, you can also visit faucet sites - sites which distribute virtual coins for free, in order to get your hands on some Dogecoins. More information about these Dogecoin faucet sites is available on the official site.
The best way to store your Dogecoins is by using the wallet launched by the official Dogecoin platform. This wallet is available across all the major platforms like Windows, Linux, Android, Osx, et cetera.
You can also store your Dogecoins in hardware wallets like Nano Ledger S and Trezor.
As mentioned earlier, it is possible to mine Dogecoin. To get started with mining, you need to download the official Dogecoin wallet and join any of the several mining pools available out there. It is advisable to have a high-powered graphics card (or a combination of them) to make the process of mining more convenient.
Dogecoin Price Trends
Dogecoin witnessed a dramatic surge in its value between December 2017 and January 2018 - similar to almost all the other cryptocurrencies in the market. During this period, the price of 1 Dogecoin (DOGE) went beyond the $0.015 mark, only to fall down dramatically thereafter. Furthermore, the market cap during this period swelled to $2 billion. At the time of writing this article, 1 DOGE is worth $0.0045 and its market cap is a little over half a billion dollars. The reason for the spike in its price is owing to the growing speculation and hype in the cryptocurrency space.
Risks associated with investing in Dogecoin
As mentioned earlier, Dogecoin is an inflationary cryptocurrency. Given that its supply will keep on increasing with no definite cap, it is hard to imagine DOGE appreciate in value like Bitcoin or Ether. Even though its price increased dramatically in December 2017 after staying dormant for few years, investing in Dogecoin is a risky affair primarily to it being a cryptocurrency. It is not immune to the legal hurdles and crackdown by authorities that plague the cryptocurrency space.
Therefore, we urge you to consider traditional, safer investments like mutual funds . These are legal and are not subjected to extreme volatility like cryptocurrency.
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