What is Dogecoin? The Latest Premier Guide 2024
What is Dogecoin (DOGE)?
Dogecoin (DOGE) is a peer-to-peer, open-source cryptocurrency. It is considered an altcoin and was launched in December 2013, featuring a Shiba Inu dog as its logo. Dogecoin’s blockchain benefits from the underlying technology derived from Litecoin. Dogecoin uses the Scrypt algorithm (pronounced ess-crypt), notable for its low price and unlimited supply.
Key Points
- Dogecoin is an open-source cryptocurrency created by Jackson Palmer and Billy Markus in 2013.
- Dogecoin is symbolized by the Japanese dog breed Shiba Inu.
- It is based on Litecoin and uses the same proof of work technology.
- Dogecoin has a loyal support community that trades it and uses it as a tipping currency for social media content.
The History of Dogecoin
Dogecoin was created by Jackson Palmer, a product manager at Adobe Inc.’s Sydney office, and Billy Markus, a software developer at IBM. The cryptocurrency was intended to satirize the hype surrounding cryptocurrencies.
2013–2014
Palmer and Markus launched Dogecoin on December 6, 2013. By December 19, Dogecoin’s value surged by 300% amid China’s ban on banks investing in cryptocurrencies. Markus and Palmer built Dogecoin’s code on top of Luckycoin, which is derived from Litecoin (a fork of Bitcoin). Initially, they used random block mining rewards but switched to a static reward in March 2014. Dogecoin utilizes Litecoin’s Scrypt technology and proof of work (PoW) on its blockchain.
2015–2023
In the summer of 2019, Dogecoin enthusiasts celebrated when the cryptocurrency exchange Binance listed Dogecoin. As of December 2023, Dogecoin’s market cap is close to $13.1 billion. Dogecoin’s infrastructure is slowly attracting fans and developers and continues to operate and trade due to its active miner community.
Concerns about Dogecoin
Initially a meme coin with no blockchain utility beyond the existing, Dogecoin has a set of staunch followers who believe their cryptocurrency indeed has utility based on its usage (with considerable validity). Use cases for blockchain and cryptocurrencies are often correlated with lifespan and value, hence the claims that a cryptocurrency has no utility. These concerns may have some impact on Dogecoin’s market price.
However, the community and active developers beg to differ. Some of their claims to utility are:
- It’s used as money for tipping and donations to charitable and humanitarian activities.
- Many online retailers accept it as a payment method.
- It stores value.
- Development continues.
As of December 2023, aside from blockchain fees, Dogecoin seems to have no other use, with blockchain fees being significantly low compared to Bitcoin and Ethereum.
But fairly, Bitcoin initially didn’t have much use either. It was a means of payment, just like Dogecoin. Bitcoin’s blockchain has been improved, and layers have been built to give it more uses, but so has Dogecoin. Therefore, if Bitcoin has utility, Dogecoin rightfully has utility too.
Dogecoin vs. Bitcoin
Dogecoin positions itself as the “fun” version of Bitcoin, symbolized by a Shiba Inu dog. Its casual presentation resonates with the sentiments of the emerging cryptocurrency community. Its Scrypt algorithm and unlimited supply argue for a faster, more adaptable, and consumer-friendly version of Bitcoin.
Dogecoin is considered an “inflationary coin,” whereas cryptocurrencies like Bitcoin are deflationary because there’s a cap on the number of coins created. The amount of Bitcoin released into circulation through mining rewards halves every four years, reducing its inflation rate until all Bitcoins are released.
Where is Dogecoin traded?
You can buy Dogecoin (DOGE) by setting up an account on one of the many cryptocurrency exchanges such as Coinbase, Binance, and Kraken. Robinhood, a traditional brokerage firm that supports cryptocurrency trading, also supports Dogecoin.
What is Dogecoin used for?
You can use Dogecoin at any merchant that chooses to accept it. Many different types of businesses accept DOGE, including Elon Musk’s SpaceX and the Dallas Mavericks. Many Dogecoin holders use Dogecoin to tip content creators on Reddit and other social media platforms.
What will Dogecoin be worth in 2025?
Predicting future market prices is challenging for anyone. It depends on market conditions, the development of cryptocurrencies, and the sentiment of investors and users.
Bottom Line
Dogecoin (DOGE) is a peer-to-peer, open-source cryptocurrency established in 2013. Initially created as somewhat of a joke about cryptocurrency, it has become quite popular among cryptocurrency fans. The humor included by the community and developers in the project has added to its appeal, which may be why it has lasted longer than many other cryptocurrencies.
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