Everything You Need to Know about Dogecoin

Pratiksha Bajikar Pratiksha Bajikar
Feb 13, 2021 5 min read
Everything You Need to Know about Dogecoin

Invented by software engineers Billy Markus & Jackson Palmer, Dogecoin is a cryptocurrency. It features the face of Shiba Innu dog from the "Doge" meme as its logo & name.

Discover all about the Story of Dogecoin in the article ahead...

What are Dogecoins?
Formation and History of Dogecoin
Dogecoins - Headwinds
Dogecoins - Breakthrough
Dogecoin and Reddit
How is Dogecoin generated?
Dogecoin vs Bitcoin
Why is Dogecoin trending?
Uses and Exchanges of Dogecoin
How to buy Dogecoin?
Future of Dogecoins
Dogecoin - FAQs

What are Dogecoins?

Dogecoin is a form of crypto currency. It is a fun, new and rapidly growing form of digital/Crypto currency. Bitcoin, Litecoin, Ethereum are a few examples of Crypto currency. It is completely anonymous, decentralized and extremely secure.

Formation and History of Dogecoin

Invented by software engineers Billy Markus and Jackson Palmer, Dogecoin was intended to be a joke. Dogecoin features the face of Shiba Inu dog of the โ€œdogeโ€ meme fame as its logo and namesake. It was introduced on December 6, 2013.

Story of Dogecoin
Dogecoin

Originally created as a joke, the inventors of Dogecoins wanted it to be a peer-to-peer digital currency which could amass a broader demographic than Bitcoin. On December 9, just 3 days later, the Dogecoin value jumped to 300% in value, rising from $0.00026 dollars to $0.00095.

Dogecoins - Headwinds

The growth occurred when the Bitcoin and other Crypto currencies swerved from Chinaโ€™s decision of forbidding the Chinese banks investing into the Bitcoin market. This was their first major setback as Dogecoin value dropped drastically by 80%.

25th December called upon dooms as Dogecoins suffered a major theft. Millions of coins were stolen by hacking the crypto currency wallet platform, Dogewallet. This incident spurred a series of tweets and made Dogecoin the most talked about altcoin on Twitter at the time. The Dogecoin community started an initiative called โ€œSave Dogemasโ€ to raise coins for people who lost them because of the theft. A month later enough money was donated to recover the losses. In 2015, one of the co-founders, Jackson Palmer walked out of the Crypto community.

Dogecoins - Breakthrough

In January 2015, the Doge community established a fundraiser to raise $50000 dollars for the Jamaican Bobsled team which had qualified for the Sochi Winter Olympics but could not afford to participate. Following this incident the Dogecoin and Bitcoin exchange rate rose by 50%.

Following the success of this fundraiser, the Dodge community continued raising funds for smaller charity events. They then set out to build a well in the river basin of Kenya. The Doge foundation led by Eric Nakagawa raised approximately $11,000 dollars. The donations were made by 4000 donors who donated 14,000,000 Dogecoins altogether.

On march 25,2014, the Dogecoin community raised 67.8 million Dogecoins to sponsor NASCAR driver Josh Wise. The car was named โ€œ98 Moonrocketโ€ and debuted at the Aarons 499 Series Cup Race.

Dogecoin and Reddit

Dogecoin boasts about a community of 1.1 million on the online social networking platform Reddit. Reddit has been quite a catalyst in the soaring popularity of Dogecoin. The GameStop stock squeeze catered to the increasing number in the Dogecoin community.

Discussion threads on Reddit noticed that certain hedge funds were shorting the stocks of GameStop. Shorting or Short-selling is when an investor borrows shares and immediately sells them, and then repurchases them at a lower price. The investor then pays the borrowed money and pockets the difference. The catch here is if the stock price goes up, the investor has to repurchase the stock at whatever the new market price is. Ratifying this fact, the members of this Reddit group began pumping the stocks of GameStop. The hedge funds lost billions and GameStop stock prices dropped drastically.

The losses were so great that these investors halted buying of these shares by reaching out to various trading platforms. Knowing that this was possible, the investors turned to Dogecoins. The shares were stopped from buying and Dogecoin value raised to an all time high of $0.08.

How is Dogecoin generated?

The creating process of crypto currency is called Mining. Crypto mining involves solving cryptographic equations. Crypto mining is achieved after validating data blocks and adding transaction records to a public ledger known as blockchain.

Dogecoin is based on a ย similar algorithm as Bitcoin except it uses scrypt technology that means it cannot use SHA-256 mining equipment that Bitcoin uses, but uses FPGA and ASIC devices for mining instead.

Dogecoin vs Bitcoin

Dogecoin vs Bitcoin

In the battle of coins, Dogecoin seems to take the upper hand as it is termed inflationary and has no maximum limit. In the mining process of Bitcoin, miners solve the block every ten minutes to confirm transactions whereas in the case of Dogecoins, they solve this block in only one minute. That means there will be an abundant supply of Dogecoins in the future and we will never run out of them. Bitcoin on the other hand is deflationary as it has a maximum supply limit of 21 million.

Why is Dogecoin trending?

The Twitterati went crazy after the worldโ€™s richest man Elon Musk tweeted about Dogecoin. His tweet read โ€œOne word : Dogeโ€ and this led to a spike in the value of Dogecoin.

Elon Musk recently even bought Dogecoins for his son. International artist Snoop Dogg and singer Gene Simmons also posted tweets backing the use of Dogecoins. It has been talked about again as the Reddit thread โ€œShitoshiStreetBetsโ€ is aiming to raise the value of crypto currencies.

Uses and Exchanges of Dogecoin

Dogecoins can be used for shopping, trading physical and tangible items in exchange for Doge on online social media platforms like Reddit and Twitter. Doge has also been used to sell a house, in pornography and poker industries.

Dogecoins are available for trading on various trading platforms. Binance, VCC Exchange, Bkex, PARIBU and Kraken are said to be amongst the safest platforms to trade Dogecoins.

How to buy Dogecoin?

Dogecoins, like any other crypto currency can be bought through online trading platforms or the Dogewallet. In India, you can buy Dogecoins through BuyUcoin, Bitbns and Zebpay.

Future of Dogecoins

Investors have predicted that Dogecoins will progress at a gradual pace unless tweets from the elite business tycoons take them uphill. It was created as a joke and for fun and the millennials connect to it because they believe it represents a light-hearted tribute to the internet meme culture.

However, it has survived the so-called crypto winter since its inception seven years ago and has been buoyant in its growth. Although its creators might have given up the crypto community, Dogecoins are here to stay.

Dogecoin - FAQs

How to invest in Dogecoin?

Dogecoins, like any other crypto currency can be bought through online trading platforms or the Dogewallet. In India, you can buy Dogecoins through BuyUcoin, Bitbns and Zebpay.

What is Dogecoin?

Dogecoin is a form of cryptocurrency. It is a fun, new and rapidly growing form of digital/Cryptocurrency. Bitcoin, Litecoin, Ethereum are a few examples of Crypto currency. It is completely anonymous, decentralized and extremely secure.

How is Dogecoin different from Bitcoin?

In the mining process of Bitcoin, miners solve the block every ten minutes to confirm transactions whereas in the case of Dogecoins, they solve this block in only one minute. That means there will be an abundant supply of Dogecoins in the future and we will never run out of them. Bitcoin on the other hand is deflationary as it has a maximum supply limit of 21 million.

How much is Dogecoin supply?

Circulating supply: 127 billion (113 billion coins have already been mined)

Who invented Dogecoin?

Dogecoin is Invented by software engineers Billy Markus & Jackson Palmer.

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