Dogecoin (DOGE) is a P2P cryptocurrency that gets its name from a popular internet meme. The token was initially taken as a joke, but quickly became more serious.
Can a joke be taken so seriously? In 2013, DOGE was created as a way to satirize an overly serious industry. But now it’s one of the biggest cryptocurrencies in the world, but how did it come to be? This will be clarified below.
What is Dogecoin?
Dogecoin is a cryptocurrency that gets its name from an internet meme. It started out as a mockery of the industry, but quickly built a community of excited enthusiasts. It has come a long way since 2013 and peaked at $2 billion during the crypto craze in January 2018.
Who created it?
An Adobe employee, Jackson Palmer, couldn’t believe the huge amount of altcoins that broke out in 2013. As a joke, Palmer sent out a tweet saying that he was investing in DOGE – a fake coin based on the dog meme Shiba Inu, which was very popular at the time.
Although he jokingly tweeted, some thought he was actually up to something. People say the industry really needs a token that’s a bit of a joke, as opposed to the controversial coins. So Palmer teamed up with a programmer, Billy Markus, to make Dogecoin a reality.
Summary of the development process
- December 2013 – DOGE is founded by Jackson Palmer
- June 2014 – DOGE Foundation is established to take control of the currency’s code
- April 2015 – Co-founder Jackson Palmer leaves Dogecoin
- January 2018 – It Quickly Passes $2 Billion Market Cap
Is there anything special?
- Speed and cost – DOGE prides itself on fast transactions and low transaction fees – both essential for widespread adoption.
- Unlimited Supply – The coin was initially capped at 100 billion coins, but later changed to an unlimited supply. That keeps prices relatively stable.
- Community – At the heart of DOGE is the active community it has. The 100,000+ members on Reddit have a reputation for being a friendly and welcoming group.
- Charity – This community is known for its good cause. They have raised more than $25,000 DOGE to help bring the financially disadvantaged Jamaican snowmobile team to the 2014 Olympics. They also partnered with a charity to help thousands of people have clean water to drink. used in Kenya.
How is DOGE manufactured?
Like so many cryptocurrencies, DOGE can be mined. It is built using the PoW Scrypt hashing algorithm (based on LTC), thus requiring less computing power than Bitcoin mining.
Miners can mine DOGE on their own or as part of a mining pool.
Since there is an unlimited supply of DOGE tokens, the value of a token is very low compared to other altcoins. That means mining is not very profitable, so the incentive is not high. However, the low rewards do not deter DOGE enthusiasts. For them, this was never a real investment; it is meant as a dynamic currency only.
How it works
The advantage of Dogecoin’s unlimited supply of tokens is that it keeps the price relatively stable. The downside is that the price is usually very low. Most people enter the crypto world as an investment. They hope that if they hold the tokens long enough, they can sell them for a profit.
That’s not true for DOGE. Since the token supply is abundant and the price is low, it is not attractive to investors who want to hold the currency. As a result, DOGE becomes a highly liquid and free P2P digital currency.
What can you do with DOGE?
The main use of DOGE is as an online critical system. If you like what someone has posted in the Dogecoin Reddit community, give them some DOGE. That’s what gives this community its reputation for friendliness.
You can also trade DOGE against other cryptocurrencies on some exchanges, which has made the coin a vehicle for people to jump from exchanges to other platforms.
Toward the future
Dumb as a joke but DOGE has built a legit reputation. Even co-founder Jackson Palmer criticized how serious people were. He left in 2015, after scams taking place in the community of lovely and cheerful members of Dogecoin. Palmer says that too many people have jumped into DOGE with a “get rich quick” mentality, forgetting the original purpose of the token.
When DOGE briefly hit $2 billion in market cap in January 2018, Palmer continued his criticism. He tweeted: “I think people are still whispering a lot about the state of the crypto space in general, that a currency with a dog on it hasn’t released an update. software for over 2 years, but has over a billion dollars in market capitalization.”
That said, the Dogecoin community is still active and loyal. With the ease of buying DOGE, low transaction costs, and relatively stable prices, Dogecoin can still live well into the future.
According to Decrypt
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