What is Dogecoin?

 What is Dogecoin?

DOGE was created as a lightweight alternative to traditional cryptocurrency, but it has become critically valuable. Our interpreter can help you understand what it is and how it works

Definition

Dogecoin (DOGE) was created in 2013 as a lighter alternative to traditional cryptocurrencies like Bitcoin. The name and Shiva Inu logo are based on a meme. Unlike Bitcoin, which was designed to be rare, Dogecoin is deliberately plentiful - 10,000 new coins are mined every minute and there is no maximum supply.

For most of its existence, Dodgecoin was generally regarded as a fun "memecoin" that was popular with its community - but at a relatively low cost. That changed in 2021: as of April, Dogecoin has become one of the ten largest cryptocurrencies in terms of market cap - with a total value exceeding $ 50 billion, although the value of each individual currency is penny (see current price).

How is this possible? Because there are lots of dozcoins in the world. Unlike Bitcoin, which is rare and designed to be resistant to inflation, Dodgecoin was made in large quantities. About 130 billion DOGEs are performed, and miners produce another 10,000 per minute. (In contrast, there are about 19 million bitcoins and only 12.5 BTC is mined every ten minutes.)

Abundance is a key part of the concept - Dogecoin (pronounced "dohj coin") was created as a fun, low-stack bitcoin alternative. As it launches in late 2013, it begins to attract an enthusiastic online community who use DOGE, from tipping strangers for good Reddit comments to helping send Jamaican Bobsled teams to the 2014 Winter Olympics in Sochi.

What makes Dogecoin valuable?

Like any other asset, the market sets a value based on supply and demand to the DOGE. In view of the huge and ever-increasing supply, the demand has had to increase tremendously in order to push the standards to the same heights as in recent times.

This happened in the first months of 2021, when prices rose nearly 7,000 percent - driven by retail investors on Reddit (including the Wall StreetBates subredit that sparked the "memestock" craze). Tongue-in-chic tweets are punctuated by her appearance on Saturday Night Live in May 2021.

Rapidly rising DOGE prices in 2021 dragged considerable media attention (along with social media posts) - which for some time created a cycle that attracted more investors and pushed up prices further. Whenever an asset sees such dramatic gains, FOMO (or "Fear of Missing") brings a wave of new traders to the fold. DOGE remains a highly livelycryptocurrency, and like any investment, there is no guarantee that it will go up or down in the future.

Where did Dogecoin come from?

Dogecoin was originatedin late 2013 as a joke by software developers Billy Marcus and Jackson Palmer, friends of Reddit who have never met offline. They have combined two popular themes into their online circle: a meme featuring ascending cryptocurrency bitcoin and a Shiva and a misspelled version of the word "dog".

To the surprise of its makers, Dogecoin caught on almost immediately - dogecoin.com received more than a million visitors in its first month. Part of what makes Dogecoin interesting is that it was (and is) a full-fledged cryptocurrency, with its own blockchain and a mining system used by Litecoin. Historically low prices (for most of its life you can get a DOGE for a fraction of a penny) and abundance have recently made it attractive and it is expected that its value will increase.

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