Tue. Dec 6th, 2022

Dogecoin – what it is?

Dogecoin (XDG) is an online P2p currency. It was created based on a modified bitcoin protocol, but unlike it and most cryptocurrencies, it is not a deflationary currency. Dogecoin does not have a coin limit, and therefore its nature is inflationary. Unusual concept of this coin was inspired by a famous Internet meme, depicting the title doge, or „doge”. The popularity of Shiba dogs has prompted the creators of dogecoin to create a somewhat absurd, yet friendly and broadly oriented currency.

How dogecoin was created

Dogecoin was created by Billy’Markus and Jackson Palmer. It appeared on December 8, 2013 as a currency, which in its very assumptions was to arouse only positive feelings. In this way the creators wanted to disassociate themselves from the famous scandal at the time, concerning Bitcoin and SilkRoad. At the same time, Dogecoin had a better chance of reaching a slightly larger audience than Bitcoin. On the part of the community associated with cryptocurrencies, the coin quickly gained sympathy and many devoted fans. In this way, it managed to initiate a real fashion for the creation of various currencies that are alternatives to Bitcoin.

How to buy dogecoin

how to buy bitcoin cryptocurrencies

Dogecoin is not one of the most popular cryptocurrencies, but still a large number of people trade them. For all intents and purposes, buying dogecoin is no different than buying any other cryptocurrency. Well… almost nothing. We will not use bitcoin and not all exchanges operate on this cryptocurrency, but still the process looks exactly the same.

How to get XDG in another way

digging cryptocurrencies

Of course buying dogecoin is not the only way to get it. Unfortunately, as in the case above, the number of opportunities is very limited, if only in comparison to bitcoin. Cryptocurrency taps are worth mentioning, the most interesting of which was Moon Dogecoin, but unfortunately it ceased to exist. Another option is also „digging”, that is, providing computing power in exchange for a certain amount of XDG.

How to store dogecoin

bitcoin and cryptocurrency wallet

Special „cryptocurrency wallets&#8221 are used to store cryptocurrencies such as dogecoin;. They are available in different versions e.g. Internet, in the form of applications for the phone, or even „cold wallets”. Each has its advantages and disadvantages, so the choice of the right one should depend on individual needs. Of course nothing stands in the way of having several wallets.

Functioning of dogecoin

Due to the relatively small amount of new technical developments, dogecoin’s greatest strength is its low price. The low cost of coins attracts a lot of new users because one DOGE costs really little. Acquiring a good amount of this cryptocurrency is possible for virtually everyone, while 1 BTC is currently worth far more. In the internet community, dogecoin is well-loved, but it is generally used for somewhat humorous investments. An interesting initiative, for example, was the collection of $ 30,000 in DOGE, in order to send the Jamaican national team to the bobsled competition in the Winter Olympics.

The community also conducted a $44,000 fundraising campaign for NASCAR driver Josh Wise’a when he lost all his sponsors before an important rally. Interestingly Wise took part in a race and his car was decorated in the colors of dogecoin. This original cryptocurrency has also gained attention thanks to a hip-hop artist. Musician Geechie Dan became a pioneer of sorts as he was the first to open up for donations in dogecoin. Thanks to this, he managed to establish a partnership with a Norwegian manufacturer, a certain Vizcatia.

Specification of dogecoin

Dogecoin is an inflationary coin. This means that the number of coins that can be mined is not limited and currently more than 100 billion DOGE have already been mined. As such, their value is not very high and should be measured in hundredths of cents rather than dollars. Each coin is additionally divided into 100,000,000 smaller parts. At the beginning of the cryptocurrency, the value of the reward for the first blocks dug was completely random and ranged from zero to one million. Subsequently, it began to gradually decrease, which ok. 100.000 blocks, and it currently stands at 10.000 DOGE and it is constant.

Dogecoin allows for a much faster transaction confirmation than Bitcoin. The digging of the blocks takes place every ok. one minute, while Bitcoin processes a block every 10 minutes. This is mainly due to differences in the way transactions are processed. Dogecoin is based on a script that uses an algorithm for mathematical proof of actions, while bitcoin uses the SHA-256 algorithm.

How to make money on cryptocurrencies

bitcoin - how to start making money

Dogecoin is only one of the really many cryptocurrencies, so you should also consider the others if you are interested in making money this way. There is a lot of choice, although bitcoin still offers the greatest opportunities in terms of its acquisition. However, this does not mean that we cannot make money with altcoins. Moreover, the volatility is often much higher, as the value of bitcoin is already huge.

Summary

Dogecoin has attracted a lot of interest from the very beginning. In just three days it managed to increase its value six times, and after a month this result was also surpassed. The relatively loose approach to the whole project, however, reflected on the dynamics of its development. A perceived lack of ideas for using dogecoin led to a decline in its price and popularity. Despite this, there are still very many users mining the coins, and the project itself is not dead.

What do you think of the dogecoin cryptocurrency? Share your opinion in the comments.