In recent years, cryptocurrency has shown its worth, with 14 million Bitcoins now in circulation demonstrating its popularity. Investors betting on the future potential of these technological advances have accounted for the vast majority of the present market capitalization, and this is expected to continue until a certain level of price stability & market acceptability is attained.
Cryptocurrency is a digital currency that has transformed global digital payment methods. It uses blockchain technology, which records and maintains transactions across numerous computer networks. This digital money is safeguarded by encryption, making double-spending and counterfeiting impossible.
Currently, there is a profusion of cryptocurrencies accessible for purchase, including Bitcoin, Binance Coin, Cardano, Ethereum, and Dogecoin, to mention just a few.
Let’s find out more about this dogecoin fellow. Is he a good boy?
Table of Contents
What is a Dogecoin?
Dogecoin, often known as DOGE, is a peer-to-peer, open-source cryptocurrency that operates on the Bitcoin network. It is regarded as an alternative cryptocurrency as well as a caustic meme coin.
This cryptocurrency began as a joke but has grown to become one of the most popular currencies in the world, Dogecoin’s blockchain, even though it was established as a joke, has some value nevertheless. The technology that underpins it is borrowed from Litecoin. Dogecoin, which employs the scrypt algorithm, is notable for its cheap price and almost limitless supply, among other characteristics.
Dogecoin’s History:
Dogecoin has a long and successful history. Originally, the inventors of Dogecoin meant the coin to be a joke, complete with a dog’s face printed on the coin. A Doge meme that went popular in 2013 inspired the logo, which portrays the Shiba Inu Dog, a Japanese breed dog that received a lot of attention. The whole design is based on the Doge meme. The creators intended to create a peer-to-peer digital currency network that could attract a far broader clientele than Bitcoin so that it could compete with it.
Dogecoin, on the other hand, was first released to the public on December 6, 2013. On December 9th, that same year, only three days later, the value of Dogecoin had increased by approximately 300 percent, to 0.00095 dollars, from its previous value of 0.00026 dollars, a leap of nearly 300 percent.
In addition, the surge in growth happened when numerous cryptocurrencies, including Bitcoin, diverged as a result of China’s decision not to allow Chinese banks to participate in the sector, which was a big blow for Dogecoin, which saw its value plummet by more than 80%.
How does it function?
Dogecoin is a ‘fork’ of Litecoin, which is a fork of Bitcoin. A fork occurs when a blockchain splits into two pathways, leading to a new protocol and maybe a new coin.
The Dogecoin network is capable of processing about 30 transactions per second, which is significantly faster than the Bitcoin blockchain. When mining DOGE, it employs an Auxiliary Proof of Work consensus mechanism, which enables individuals mining other proof of work cryptos at the same time to mine DOGE at no extra cost. Merged mining is the term used to describe this procedure.
Dogecoin’s first block rewards were intended to be random and range between zero and one million DOGE, and this was the case until the cryptocurrency achieved a total supply of 100 billion coins in February of the year 2021. Since then, each mined block has yielded a reward of 10,000 DOGE for the miners involved.
How to Purchase Dogecoin?
Dogecoin can be bought on a variety of cryptocurrency exchanges. As a result, the first step in purchasing Dogecoin is to register an account online with a crypto exchange that accepts DOGE. The account must be filled with cryptocurrency.
After funding the wallet, you may start placing orders via your broker. If the order is successful, DOGE will appear in your wallet. If not, the order may be canceled and reissued at the next trading session. You may also purchase a cryptocurrency wallet with private keys to keep your DOGE outside of the exchange.
Using a crypto wallet protects your DOGE against exchange hacks. Easily the most straightforward software wallet for Dogecoin is the Dogecoin wallet, which is accessible as a desktop and mobile application on both Mac and Windows computers. Cold hardware wallets are kept off-line, however, they are subject to a small cost, which varies according to the supplier.
Where can I get Dogecoin?
The following are the top crypto exchanges for Dogecoin:
Join the Accepted Platinum Credit Card Rewards Program!
Dogecoin Mining:
Dogecoin is mined at a rate of one block per minute, and there is no limit to the number of coins available. This, according to Palmer, was a mistake, and the supply ceiling should have been established at 100 billion units instead. It was intentionally kept ‘unfixed’ to maintain the cost of DOGE as low as possible.
The recent spike in DOGE prices has benefited miners. When trying to mine DOGE, do keep in mind its instability. A Dogeminer is hardware used to mine Dogecoin. It is essentially a node on the Dogecoin blockchain that executes mathematical equation calculations to review and validate incoming network transactions. The nodes decide which confirmed transactions go on the Dogechain and which blocks go on the shared ledger. Miners get DOGE for completing complicated mathematical computations. The fastest miner receives 10,000 DOGE per minute from the Dogechain to confirm an incoming transaction.
Dogecoin uses Scrypt technology, which is similar to Bitcoin’s SHA-256 mining algorithm in that it has lower hash rates (a measure of processing power per second) and consumes less energy than the Litecoin mining algorithm. Dogecoin’s general architecture varies greatly from that of Bitcoin, which has a maximum supply of 21 million coins, more than 18.5 million of which have already been mined.
Storing Dogecoin
There are many Dogecoin storage options in the market. The Jaxx wallet is one of the greatest options. This wallet is free for iOS and Android. This program allows you to store Dogecoin and many other currencies. Astonishingly, you can swap cryptocurrencies right from your wallet.
A hardware wallet is an ideal solution if you want to make a large investment in DOGE or HODL this cryptocurrency for a long time. They keep your bitcoin in “cold storage” offline. This prevents cyber attackers from accessing your assets. They both support Dogecoin, as does the Ledger Nano X. (DOGE).
What exactly is #DogeDay?
Dogecoin investors are expecting that the current surge will continue. The current objective is to raise the value of Dogecoin over the $1 mark. If you purchased it when it was just a few cents, you would have received an enormous return on your investment. #DogeDay was declared unofficially on April 20 by Reddit users. Even though 4/20 is not a significant date for the currency itself, it is scarcely a coincidence that it is also a widely observed holiday among marijuana lovers.
The #DogeDay support did help to propel the price of the currency up to its greatest point in history, but only for a limited period. It returned to the mid-20-cent level within 48 hours after its first rise.
Why is it so Famous?
Dogecoin’s popularity has been boosted by sarcastic endorsements from high-profile celebrities like rapper Snoop Dogg & Gene Simmons, frontman of rock band Kiss.
In the year 2019 Twitter vote determined that Elon Musk should be the chairman of Dogecoin. The Tesla CEO realized the irony and has now joined in on the fun, tweeting supportively that Dogecoin is his fav cryptocurrency. With 53 million followers on his own Twitter account, even a brief pro-Dogecoin message from Musk boosts the cryptocurrency’s popularity and hence its investment attractiveness.
Musk hosted the popular American television sketch program Saturday Night Live on May 8, 2021, in New York City. In the tweet announcing his impending visit, Musk referred to himself as “The Dogefather.”
Following Musk’s tweet, a huge number of individuals purchased large numbers of Dogecoins (DOGE), causing the price of the cryptocurrency to rise from a 24 hour low of 0.062 dollars to 0.078 dollars, a 20 percent gain.
To learn more about the tweet history of dogecoin visit this link.
Dogecoin vs Bitcoin
One of the biggest distinctions between the two currencies is supply. Dogecoin has an infinite supply. Without a cap, the currency may expand indefinitely.
However, Bitcoin has a finite quantity. Each Bitcoin is mined uniquely. Blockchain underpins Bitcoin. Each transaction is recorded on a secure decentralized ledger. A block is a collection of transactions.
Bitcoin is created by solving hard mathematical puzzles online. It needs a strong computer and plenty of electricity. This mining method is exclusive to Bitcoin. While each cryptocurrency has a supply-creation method, Bitcoin takes the most. A Bitcoin transaction takes longer than Dogecoin.
Future Prediction
The price of DOGE has been on a rollercoaster ride for quite some time. When compared to the value of the US dollar, the value has increased by 774 percent since the beginning of the year. With a 21,000 percent increase in value since its inception, Dogecoin has made an incredible trip from its original value of 0.000232 dollars when it all began to its current worth of 0.053 dollars. The DOGE is expected to reach $1 by the middle of 2022, according to some analysts. Others predict that the price would rise to as much as $1.5 in the next 5 years.
Conclusion
Investing in Dogecoin may be both entertaining and perhaps rewarding. Because it is so inexpensive, you can own enough coins even if you just have a few hundred dollars to invest. Just keep in mind that any money you put into the coin might vanish overnight if the value of the currency unexpectedly drops. Don’t put too much emphasis on personal growth.
