Dogecoin started as a joke but is now a top ten cryptocurrency that traders and investors take as seriously as any other crypto.
Designed as a fun, friendly and educational digital currency, Dogecoin is instantly recognisable from the playful Shiba Inu dog meme.
A thriving and vibrant online community sets Dogecoin apart from the rest – including the odd intervention from the world’s richest person, billionaire Tesla and SpaceX CEO Elon Musk.
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What Is Dogecoin?
Dogecoin – yes, the cryptocurrency really is named after a Japanese slang term for dog – was forked from rival crypto Litecoin in December 2013.
Developers Billy Markus and Jackson Palmer envisaged the crypto as a lighthearted response to the serious soul-searching and aspirations of the crypto community.
The number of Dogecoin is uncapped, which means miners can mint new coins forever as long as there is an interest from the market. So far, the market capitalisation is $8.7 billion, making Dogecoin the tenth biggest cryptocurrency worldwide and a serious crypto contender.
Despite the popularity, Dogecoin is unlikely to make too many millionaires as the coin is worth $0.06 and has spent most of the year shedding value. The highest Dogecoin price was $0.49, reached on May 13, 2021.
Dogecoin is mined under a proof-of-work protocol that has many similarities with Litecoin, the parent blockchain.
The digital currency’s main use is for tipping on social networks Twitter and Reddit. Users can tip other posters who author or share quality content.
Some websites give a small amount of Dogecoin away for free as a Dogecoin faucet or tap so new users can take part in the crypto’s online communities.
As a mainline crypto, Dogecoin is traded by many major exchanges.
Dogecoin And Alex Green
Dogecoin is no stranger to controversy. Palmer broke his links with the crypto in 2015 blaming the impact of a ‘toxic community’ that had grown around the crypto.
One player was Alex Green, who developed a Dogecoin exchange called Moolah. Green persuaded several Dogecoin investors to fund his exchange, but his plan unravelled when his backers found out that he spent the money on Bitcoin worth $1.5 million to fund a lavish lifestyle.
Later, Green – real name Ryan Kennedy – was jailed for rape.
Dogecoin And Elon Musk
At 51 years old, Elon Musk is the world’s wealthiest billionaire with a fortune of $225 billion – $80 billion ahead of the world’s second wealthiest person, handbags, champagne and perfume luxury brands owner Bernard Arnauld.
Musk often chips in with Tweets and other messages talking up Dogecoin.
His playful comments started in 2021 when he posted a Lion KIng doge meme that sparked a rush of interest in the crypto. Musk also jokingly accepted the post as CEO of Dogecoin following an online poll.
Appearing on TV show Saturday Night Live, Musk dubbed himself The DogeFather and the crypto jumped in value from $0.25 to $0.30 in a few minutes, reaching $0.33 within a couple of hours, but immediately dropped back to $0.30.
An argument rages in the crypto community about Musk’s intentions for Dogecoin. After the TV appearance, he was rebuked for pumping the crypto.
Dogecoin Good Works
The Dogecoin community is well-known for supporting light-hearted and charitable causes.
For example, up and coming NASCAR driver Josh Wise needed a sponsor to compete. Within a few days, the Dogecoin community crowdfunded $55,000 to back his racing career.
Other donations include $25,000 to 4 Paws for Ability to train dogs to help disabled veterans and children and $30,000 to aid a drinking water project in Kenya.
Shiba Inu is a small, good-tempered hunting dog bred in Japan. The Dogecoin meme is sometimes nicknamed ‘Shibe’.
A meme is a logo, image or saying that quickly circulates on the internet. Often memes sum up a state of mind after a major event. The Shiba Inu is one of the best known cryptocurrency memes. The dog in the meme is widely accepted to be a photo of a Shiba Inu called Kabosu. Owner Atsuko Satu posted the images on the web in 2010. The meme was popular due to the dog’s askance glare at the camera.
Pumping or pump-and-dump are terms used by investors. To pump a share or crypto, the investor buys a large quantity at a low price then publicises the fact to push the price up. One the price reaches a pre-set level on the market, the pumper releases the shares or crypto back to the market and scoops a profit. Inevitably, the pumped price drops back.
The price of Dogecoin is much less than many other cryptos but the value follows the trajectory of the markets. Mining keeps Dogecoin alive. With no cap on the number of coins that are minted, the crypto is attractive to miners despite the coin’s low value. Dogecoin is well regarded by the online crypto community, but there are other coins to consider as a trader or investor.
To buy Dogecoin, sign up for an account with an exchange that supports the cryptocurrency. Coinbase, Kraken and Binance all back the crypto. Once registered, link a digital wallet to the account and start trading.
Yes. Dogecoin can be spent with many retailers, such as Twitch, the Amazon gaming platform; Tesla, Elon Musk’s car maker, and Air Baltic, the Latvian airline.
Cryptocurrencies in general have a poor press about security. However, Dogecoin is as safe as any other crypto and difficult to steal if kept in cold storage rather than in a hot wallet linked to an exchange account. Cold storage is a wallet that is only linked to the internet when in use, while a hot wallet is constantly online.
Dogecoin is unregulated as a decentralised cryptocurrency, so no government or bank holds sway over the network. The network is overseen by a not-for-profit foundation.
A legal tender is money you can save or spend, like US dollars or the British pound sterling. Dogecoin is not a legal tender and was not developed as a store of value, like Bitcoin. If someone accepts Dogecoin is a bit like American Express – the crypto is not money but can be used as such if a vendor chooses.
Cryptocurrency predictions are notoriously difficult. Some people see the future of Dogecoin as a currency, while others see the coin as a joke that will quietly fade away. Nevertheless, the Dogecoin community is one of the largest cryptocurrency groups and a huge global support – but it’s doubtful Dogecoin will take over or rival Bitcoin and Ether any time soon.
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