Dogecoin is an open-source, peer-to-peer cryptocurrency created by software engineers Billy Markus and Jackson Palmer. The cryptocurrency has its logo to be a Shiba Inu breed of dog.
Launched in December 2013, Dogecoin was created as a joke to mock the wild rumours about cryptocurrencies at that time. The coin is considered an Altcoin and uses a technology derived from Litecoin.
When it became a hit in the crypto market, it was considered the first meme coin and also the first dog coin. But now we can boldly say it is the inspiration behind other meme coins like Shiba Inu.
Dogecoin has boomed, yes the coin is really big now in the cryptocurrency market.
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Founders Of Dogecoin
The coin was created by software engineer Billy Markus who worked for IBM and now is currently the CEO and founder of Markus Technologies LLC. While co-founder Jackson Palmer was a member of the adobe systems marketing department in Sydney.
Marcus one day reached out to Jackson Palmer on Twitter and jokingly tweeted, “investing in Dogecoin pretty sure its the next big thing”. Days later the two came together and started building the cryptocurrency.
Within the first 30 days of launch, the meme coin skyrocketed as the website got over a million visitors. But co-founder Billy Marcus sold all his share of the coins to purchase a used Honda Civic before it boomed, and now the meme coin can purchase the Honda company two times.
This experience is why we caution investors in coins like Nekiva to be cautious of selling all their coins for short term gains when the long term objective is clear.
The net worth of these two people is still unknown since they try their best to stay off the news and social media but the estimated net worth of the meme coin is around $80 Billion.
How To Buy Dogecoin
The coin can be purchased on many traditional crypto exchange platforms. You can go for an online brokerage like Robinhood that also allows crypto trading.
Some other crypto exchanges that support Dogecoin included Kraken, Coinbase, Binance, and KuCoin. You can purchase by first creating an account on the exchange then buying the coin into your wallet.
The step by step process goes like this:
- Selecting buy crypto
- Select the crypto you want to exchange for Dogecoin
- Enter the amount you want to buy
- Copy and paste your dogecoin wallet address
- Select complete payment
After doing the above steps, you will receive your crypto in minutes.
How To Mine Dogecoin
Dogecoins proof of work protocol is a bit different from bitcoin, one of these differences of the Altcoin is the use of Scrypt technology the Scrypt technology makes the coins be mined faster than Bitcoin.
It also has a Block time of 1 minute which makes mining on a laptop take less than a minute. The coin also has an uncapped total supply meaning it has no mining limit as a user can mine for as long as they wish.
As per the calculation by Coinwarz, dated December 15, 2021, it will take approximately 4..32 minutes (0.003 days) to mine 1 Dogecoin. The hash rate of the coin is 9,500.00MH/S which consumes about 3,425.00 Watts of power at $0.10 per kWh.
Dogecoin can be mined by solo mining or join a mining pool. The cryptocurrency can be mined on Linux, Windows, or Mac with a graphic processing unit.
What Can Dogecoin Be Used For
The meme coin can be used as a payment system. You can choose to pay for goods and services with any merchant provided they accept DOGE.
Many kinds of businesses accept the coin as payment with the like of some high profiles like Elon Musk the Ceo of Space X and Tesla and the Basketball team Dallas Mavericks accepting the coin as payment.
Dogecoin holders also use the coin as a tipping system on Reddit and Twitter to tip the creating or sharing of content.
You can also get tipped with DOGE by participating in a faucet. A dogecoin faucet is a website that gives a little amount of DOGE for free as an intro to the crypto so that you can participate in Dogecoin communities.
Is Dogecoin Technology Safe
The cryptocurrency uses blockchain technology. Although the technology is not impossible to hack, it is very difficult. The coin is considered among other cryptocurrencies with large market caps and wide adoption rates so it’s relatively safe.
The Influence Of Elon Musk On Dogecoin
The tech billionaire has one way or the added value to Dogecoin through his influence on social media.
He often uses his Twitter platform to post his views on the DOGE cryptocurrency. This has led to some claims and rumours that his actions are purposely to manipulate the market in favour of Dogecoin.
Anytime the tech billionaire post about the cryptocurrency, there is a price movement that occurs shortly after the dogecoin-related post from Elon Musk.
Please note Dogecoin has no formal organization & no one reports to me, so my ability to take action is limited
— Elon Musk (@elonmusk) May 25, 2021
The first post He made about the currency was on December 20, 2020, He tweeted the word “DOGE’ which shortly after the market value of dogecoin went up by 20%.
After that, a series of Dogecoin-related posts followed by Elon Musk, On February 2021 the tech billionaire tweeted “Dogecoin is the people’s crypto and no high or lows, only Doge.”
After these tweets, the value went up again by 40%. On April 15 2021 the tech billionaire made another dogecoin related post, HE tweeted an image of Joan Miró’s ‘Dog Barking at the Moon’ painting and captioned it “Doge barking at the moon”
Then in May 2021, Dogecoin went up again by 11% after Elon Musk tweeted a meme related to the cryptocurrency
Musk then announced that his Tesla company will accept the DOGE cryptocurrency as means of payment which made the currency go up more than 20% on December 14, 2021.
Will DogeCoin Go Up
Though Dodge has very little real-world utility, its returns have still surpassed its competitors. However, these returns or profits are largely artificial and won’t last long.
The main reason why dogecoin became big was the hype it got on social media. Tech Billionaire Elon Musk and the basketball team owner Mark Cuban promoted the coin on social media and got many investors through that.
Cryptocurrencies are built in such a way that the more the investors the more expensive it becomes, but with dogecoin, after investment pumped up the value, and dogecoin made an attempt to increase its value and make some cool interests, it was dumped by investors shortly after.
One red flag of Dogecoin is the fact that its stock price doesn’t directly align with the underlying fundamentals. The cryptocurrency has a small utility and zeroes to nothing competitive advantage in the market.
But still, its value went up. That’s a sign that it might not go up again in a long-term investment.
In the past couple of weeks, the value of dogecoin has fallen greatly, it has taken a turn for the worse.
There’s a big chance it might not go up again if it doesn’t develop a competitive behaviour in the market. So despite the fact that it is cheap, it is also very dangerous to invest in.
Will Dogecoin Survive Long Term Investment
Just like any other investment, it is important to investigate and know whether or not it’s going to be able to contain a long term or short.
Long-term investments are the best, they are more likely to bounce back after they go or crash down in the market and retain their competitive advantage in the market.
Cryptocurrencies for instance are highly volatile and no one knows for certain whether they will go up or still be around in time.
Dogecoin however is very risky as it doesn’t have much utility as its competitors.
Bitcoin for instance is widely accepted by many merchants and it’s the most popular cryptocurrency, which gives it a strong advantage because of its popularity and adoption.
Ethereum also has a real word utility through its blockchain technology. It doesn’t only hold the Ether but also it is used by non-fungible tokens NFTs, decentralized finance, and other applications on its network.
The network has the ability to reshape a variety of industries. So the cryptocurrency ETH also has a very good chance of succeeding.
Because dogecoin has very little real-world utility. The few merchants that accept it are more likely to prefer bitcoin than the DOGE. Furthermore, it doesn’t have any merits over the major cryptocurrencies.
Take Away
Any time you choose to invest in cryptocurrency is always safe to do thorough research about the asset you are about to invest in.
Look beyond the price research, if you have very little knowledge, it is advisable to verify if the coin has a real-world utility and if it has competitors in the market.
The best investments are those that are likely to last very long in the market. Dogecoin seems not to be the best investment right now. But there are a lot of other safer coins out there like bitcoin and Ethereum and Nekiva who have the potential to grow larger in the market.
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