What is Dogecoin?
Created in 2013 by software engineers Billy Marcus and Jackson Palmer, dogecoin has grown to become one of the most popular tokens.
It is very rare that jokes turn into multi million dollar projects, Dogecoin however, takes this one home. Created in 2013 by software engineers Billy Marcus and Jackson Palmer, dogecoin has grown to become one of the most popular tokens as of 2021. Doge was created to poke fun at the popular bitcoin and that is why it was branded using a popular meme at the time that featured the deliberately misspelled word “doge” to describe a Shiba Inu dog.
Currently, Dogecoin has quadrupled its value and gained more than 5,000% with endorsements from billionaire Elon Musk who named Dogecoin the “people’s crypto,” and promised to plant a physical Dogecoin token on the moon.
- Dogecoin offers fast transactions and low transaction fees—both essential for wide adoption.
- The token has unlimited supply which only means that the price is always stable.
- The Dogecoin community is known to be very welcoming and very philanthropic.
The downside to Dogecoin is that the price is usually relatively low because its supply is high, this doesn’t usually attract investors like other crypto currencies
How does Dogecoin work?
Similar to Bitcoin and Ethereum, Bitcoin runs on blockchain technology. Blockchain is a distributed, secure digital ledger that stores all transactions made using a decentralized digital currency. All Dogecoin holders carry an identical copy of the Dogecoin blockchain ledger, which is updated with all new transactions in the cryptocurrency. Just like other cryptocurrencies, Dogecoin’s blockchain network uses cryptography to keep all it’s transactions secure.
How to get Dogecoin?
Inorder to get a hold of this token, you have two options; to either buy it or to mine it. If you want to buy dogecoin, it is available on cryptocurrency exchanges like Binance and Bybit. Buying Dogecoin from an exchange is very straightforward, currently, 1 Dogecoin stands at approximately 650/=. All you need to do is exchange your shillings for the crypto currency. Mining dogecoin is considered to be much easier than other currencies like Bitcoin because competition is low, supply is high and the reward for dogecoin is lesser than the others.
Your dogecoin mining starter pack should include a windows, linux, or Mac personal computer and mining software like Cudaminer, Droid miner, and Mac Miner. It is however advisable to join a mining pool as opposed to doing it alone because you can share resources and it is steadier.
What can you do with Dogecoin?
Dogecoin may be used for payments and purchases, but it’s not a very effective store of value. This is chiefly because there is no lifetime cap on the number of Dogecoins that may be created by mining meaning that the cryptocurrency is highly inflationary, by design. The blockchain rewards miners for their work by creating millions of new Dogecoins every day, which makes it very challenging for speculative price gains in Dogecoin to hold up over time.
If this is the sign you needed to begin investing in Dogecoin, we have you covered with an all you need to know article.