Hokk Finance

What is Dogecoin?

DOGE is the native currency of Dogecoin, the open-source, peer-to-peer cryptocurrency. Dogecoin’s symbol is based on the image of Kabosu, a Shiba Inu dog whose image was circulated widely in a viral meme. Despite the fact that Dogecoin was created primarily as a joke, it remains hugely popular. Dogecoin uses a scrypt algorithm and is renowned for its low price and endless supply.

Understanding Dogecoin

Dogecoin originated as a joke, but it soon gained traction following its release in 2013. By late 2017, it was a key member of the cryptocurrency bubble, which saw the value of numerous currencies skyrocket. When the bubble burst in 2018, Dogecoin’s value plunged. However, it managed to retain some loyal traders and investors who continue to use it to influence content on Twitter and Reddit. Dogecoin may be purchased, traded, and stored on digital currency exchanges.

Dogecoin’s Background

Dogecoin was created in 2013 by Jackson Palmer, a product manager at Adobe Inc. The coin was initially developed to mock the frenzy around cryptocurrencies. Palmer has been described as a “skeptic-analytic” observer of emerging technology, as evidenced in his first tweets about Dogecoin which were startlingly disparaging. He purchased the domain dogecoin.com after receiving a plethora of positive comments on social media.

Meanwhile, Billy Markus, a software developer at IBM, got wind of the Dogecoin buzz. Markus asked Palmer whether he could contribute to the software that would power a real Dogecoin. Markus based Dogecoin’s code on Luckycoin, a fork of Litecoin that featured a randomized block mining reward mechanism until March 2014, when it became a static payment system. Dogecoin is a proof-of-work (PoW) currency that uses the scrypt algorithm from Litecoin. Palmer and Markus unveiled the coin on December 6, 2013. Just under two weeks later, on December 19, Dogecoin’s value soared by 300 percent.

Dogecoin’s Ascent

Dogecoin pitched itself as a “fun” alternative to Bitcoin, using an image of a Shibu Inu dog as its symbol. Dogecoin’s laid-back presentation matched the temperament of the nascent crypto community. Its scrypt technology and endless supply were used to advocate for a cryptocurrency that was faster, more adaptable, and more consumer-friendly.

Due to a restriction on the number of coins that may be issued, Dogecoin is, unlike Bitcoin, an “inflationary coin.” Bitcoin’s quantity is released into circulation via mining incentives and is halved every four years, as is the inflation rate, until all coins have been issued.

The Dogecoin community donated 27 million Dogecoins (about $30,000) in January 2014 to support the Jamaican bobsled team’s journey to the Sochi Winter Olympics. In March of that year, the community donated $11,000 in DOGE to build a well in Kenya, as well as $55,000 to sponsor NASCAR driver Josh Wise.

Dogecoin Gets a Kick out of Controversy

As the crypto industry became more serious in 2015, the lighthearted hype surrounding Dogecoin began to fade. Jackson Palmer’s departure from the project, who reported a “toxic atmosphere” surrounding the coin, was the first clue that something was off in the Dogecoin community.

‘Alex Green’ was an alias used by Ryan Kennedy, a British citizen who launched the Moolah Dogecoin exchange. Green was renowned for being a generous tipper who allegedly gifted $15,000 for the NASCAR benefit. Green’s exchange persuaded members of the community to hand over substantial sums to support the establishment of his exchange. However, it was later revealed Green – i.e. Ryan Kennedy – had used the funds to purchase more than $1.5 million in Bitcoin to maintain his luxurious lifestyle. Kennedy was found guilty of numerous counts of rape in 2016 and sentenced to 11 years in prison.

Dogecoin During and After the 2017-2019 Crypto Bubble

Dogecoin’s value skyrocketed towards the end of the boom in 2017, only to plummet, like the rest of the coins in the cryptoverse, in 2018.

In the summer of 2019, Dogecoin witnessed another increase in value. Dogecoin supporters were overjoyed when Binance listed the cryptocurrency, and many believed that Elon Musk, the CEO of Tesla, had backed the coin in a cryptic tweet.

Dogecoin in the Twenty-First Century

Dogecoin’s infrastructure has not been a major priority for the coin’s creators, who are still volunteers. However, Dogecoin’s lively community of miners has enabled the coin to continue trading. As CryptoIQ’s Zachary Mashiach describes:

“Numerous Scrypt miners still prefer Dogecoin (DOGE) over other Scrypt PoW cryptocurrencies. Indeed, the Dogecoin (DOGE) hash rate is roughly 150 TH/s. This is just below the Litecoin (LTC) hash rate of 170 TH/s, likely because Dogecoin (DOGE) can be merge mined with Litecoin (LTC), meaning miners can mine both cryptos simultaneously using the same work. Essentially, practically everyone who mines Litecoin (LTC) chooses to mine Dogecoin (DOGE) as well, because merge mining Dogecoin (DOGE) increases profits.”

Musk is a vocal advocate of Dogecoin. He announced in May 2021 that he is working with the coin’s creators to improve transaction speed. The SpaceX creator conducted a social media poll asking if Tesla should accept Dogecoin as a means of payment. In addition, in October 2021, AMC Entertainment Holdings, Inc. (AMC) reported that before the year’s end, it will accept Dogecoin for digital gift card purchases, providing the meme coin with even greater utility. Dogecoin’s market cap ranking was 10 as of Oct. 8, 2021, with a market capitalization of $31.9 billion, significantly higher than its previous year’s position of 48 and market value of $339 million.