What is Dogecoin: Understanding The Meme Cryptocurrency

What is Dogecoin
What is Dogecoin

You’ve probably heard of Dogecoin as one of the latest and biggest cryptocurrencies on the market, but its market cap pales compared to larger coins like Bitcoin and Ether. So what does Dogecoin have that these other currencies don’t? Quite a lot, actually. Here’s why Dogecoin has staying power (and why you should consider using it).

What Is Dogecoin?

According to SoFi, “Being based on Litecoin, Dogecoin uses scrypt technology.” This means that you can use both your CPU and GPU to mine Dogecoins. It originates from the doge meme, which started as an inside joke among Internet-dwelling dog lovers. The term doge derives from a 2010 photo of a Shiba Inu dog. Once online communities discovered how easy it was to tip each other small amounts of money using bitcoin and litecoin, they wanted to find a way to make it even easier. Thus, Dogetipbot was born in 2013.

The History Of Dogecoin

Billy Markus was a software developer at IBM who wanted to create a digital currency but failed his first attempts. That was until he found Dogecoin. Its initial creator was Jackson Palmer, a product manager at Adobe in Sydney. He came up with Dogecoin as a way to satirize cryptocurrency because he thought altcoins were getting too serious. It was only a humorous concept, but one that caught such a buzz that it was perfect for Markus to make into a reality.

According to Billy Markus, his Dogecoin drew inspiration from the online cryptocurrency community and Luckycoin (a version of Litecoin). Many members of that community were meme lovers, so Markus built in a feature that would allow users to tip each other with coins. Hence, Dogecoin—because pictures of Shiba Inus are intrinsically funny.

Despite the digital currency’s humorous nature, the DOGE community is also famous for its charity. On the 9th of January 2014, one of Dogecoin’s members posted about two athletes from Jamaica who qualified for a place in Sochi to compete in a bobsled competition. However, they needed $40,000 to get them there. So most members of the Doge community sent Dogecoins—about $30,000 worth at that time—to help out.

How Does Dogecoin Work?

It functions much like any other currency, but there are some big differences between Dogecoin and other Altcoins. It is not a fork of Bitcoin. According to SoFi, “Being based on Litecoin, Dogecoin uses scrypt technology.” This means that you can use both your CPU and GPU to mine Dogecoins.

Dogecoin is an inflationary coin, while cryptocurrencies like Bitcoin are deflationary. This means that Bitcoin becomes more scarce over time, but Dogecoin becomes less scarce. It’s currently unlimited, meaning there will be more Dogecoins mined in perpetuity with fewer fees.

How to Buy Dogecoin

Through cryptocurrency exchanges, you can buy Dogecoin with fiat currencies such as USD and EUR. Many exchanges support DOGE, including Bittrex, Poloniex, and ShapeShift. If you already have a cryptocurrency wallet (such as those provided by Coinbase), you can deposit your funds into an exchange wallet. After your funds clear, you can then purchase DOGE on one of these sites.

There is a lot to be said about Dogecoin, and I would encourage you to do your own research. But if you’re looking for an entertaining way to get involved in cryptocurrency, it might not hurt to look into getting some DOGE on board. And why not? It could see $10 USD per coin or more in one year.

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