Dogecoin must be one of the most well-known and valued cryptocurrencies in nature today. We’ve put together this detailed DOGE guide, based on thorough analysis, to address all your questions about this fun and friendly crypto.
Dogecoin, otherwise known as DOGE, is an open source cryptocurrency that has grown into a cool, friendly and easy-to-use Internet currency.
If you ask yourself, “What’s this thing with Dogecoin?” or any other similar question, you have come to the right spot, because this detailed guide will give you all the answers you need.
Did you know?
The famous tech pioneer, Elon Musk, is a huge fan of Dogecoin. The founder of Tesla and SpaceX has tweeted regularly about his soft spot for DOGE over the years. Go Elon!
Dogecoin has an incredibly active and supportive community with participants known as ‘Shibes’ who have engaged in a number of social causes and fundraisers.
The price of Dogecoin was unpredictable but, ultimately, it rose in value and achieved market capitalization of more than $1 billion at one point.
As far as its delivery was concerned, the coin had a quick initial production schedule, with 100 billion coins already being produced by the middle of 2015. Dogecoin reportedly has a circulating stock of more than 118 billion.
While its primary application is as an online digital currency, it has become a tipping mechanism in which Internet users give tips charged in Dogecoin to other users who post content they enjoy.
What is the Dogecoin (DOGE)?
Dogecoin is an open-source digital currency used by Internet users worldwide.
The system is based on Litecoin, which ensures that all changes and improvements made to it will also be added to Dogecoin.
The original aim of the coin was not to create an innovative technology or something revolutionary and spectacular, but rather to create an easy-to-use transaction tool.
Dogecoin has a large and dedicated user base that uses Doge as a currency rather than just using it as a speculative asset. Although, like other cryptocurrencies, Dogecoin can definitely be held as an investment or traded in pursuit of a profitable return.
Where Did Dogecoin Get Its Name From?
Dogecoin was named after the original ‘doge’ internet meme, which is based on a screenshot of a Japanese Shiba Inu canine.
Doge memes are produced using a set of Shiba Inu images accompanied by text in the Comic Sans font. The text is written in an incorrect manner, such as ‘wow’ and ‘much concern,’ which is intended to reflect what the dog is doing.
The Dogecoin emblem is the face of the Shiba Inu breed, with a big D symbol on it.
How Are You Pronouncing DOGE?
There is a small rift in the correct pronunciation for Dogecoin.
Some argue that the spelling is identical to “dodge,” while others say that since the name comes from a dog, the correct pronunciation is “dogue.”
The Dogecoin Community
As mentioned above, although Dogecoin initially started as a hoax, it soon gained a lot of popularity, and a very large community was developed around it, and is now one of Dogecoin’s greatest assets.
Community members who are also referred to as “Shibes” have been recognised for numerous charitable donations and other altruistic causes.
The culture receives a significant social media follow-up.
The Reddit / r / dogecoin community has 129k members or ‘Shibes,’ and they use Dogecoin to tip each other to share fun content.
In comparison, groups such as DogePizza and SocksForTheHomeless use Reddit as a forum to raise money for good causes.
This Dogecoin culture, in addition to being one of its greatest assets, has been the cornerstone to its sustainability and growth. No other ‘meme coin’ has been as popular as Dogecoin has.
The typical term used by Shibes is ‘1 DOGE = 1 DOGE,’ meaning that they assume that the coin should be used as a trade currency instead of being used purely as an commodity or a financial asset.
The group regularly contributes to Dogecoin, including developing new apps like DogePal, which is a program that enables users to pay with Doge by using email addresses.
Was Dogecoin Started As a Meme?
It received a lot of support from the Twitter-sphere, even catching the attention of Billy Markus, a software engineer, who later approached Jackson Palmer about doing something concrete with Dogecoin.
Then, on December 6, 2013, Dogecoin was founded to encourage anybody to mine and/or exchange it.
The buzz around it quickly grew, so what started as a joke quite quickly became a major cryptocurrency.
Dogecoin was designed to be fun and have a less intense vibe than other cryptocurrencies.
In 2013, when Dogecoin was established, there were far less cryptocurrencies around than there are today, and most of them had significant financial or political motives.
How Does Dogecoin Work?
One thing that distinguishes Dogecoin from most other coins is that it is inflationary rather than deflationary.
Bitcoin and most other cryptocurrencies that can be mined are produced with a hard limit on the availability of coins.
The key problem resulting from deflationary coins is that they promote hoarding because their relative prices increasing over time. Also, once the hard cap is reached, it is not economical for the miners to continue to maintain the operation.
Thus, inflation-based strategies were planned to sustain mining and substitute missing coins, helping to keep supply steady at close to 100 billion tokens.
Dogecoin has a set production rate of 10,000 coins per minute.
Jackson Palmer wrote in 2014 that the currency’s aim is to maintain around 100 billion coins in circulation, so after 100 billion dogecoins are made, incentives will start at 10k per block. This would’ve helped sustain mining and secure 100 billion coins in circulation (considering lost wallets and other ways coins can be destroyed).
Moreover, as most cultures do not regard Dogecoin simply an investment, but instead a means of trade, inflation may be an significant factor in its growth.
How Does Dogecoin Compare to Litecoin?
The core concept of Dogecoin is based on Luckycoin, which is based on Litecoin.
Dogecoin originally featured a randomized reward scheme that provided incentives for mining blocks of coins.
Later, this was changed to a set block incentive in 2014.
Both Dogecoin and Litecoin use a proof-of-work algorithm and use Scrypt technology.
However, unlike Litecoin, there is no limit on the availability of Dogecoin.
Since 2014, Dogecoin and Litecoin mining have been merged, which means that both coins can be mined in the same process.
|Founded||December 6, 2013||October 7, 2011|
|Price (March 2020)||$0.001823||$39.06|
|Mining Algorithm||Scrypt (Proof-of-Work)||Scrypt (Proof-of-Work)|
|Market Cap (March 2020)||$226,027,612||$2,515,786,037|
|Supply (March 2020)||123,957,910,395||64,404,581|
Some of Dogecoin’s benefits over other altcoins include:
- Incredibly small exchange costs, just $0.01.
- Fast transaction times, less work is required to measure mining calculations.
- An easy-to-use interface. It’s a friendly and welcoming culture.
Note: Dogecoin is a popular cryptocurrency that has developed a large community where users can have fun while familiarizing themselves with crypto.
How Does Dogecoin Mining Work?
Until being checked, Dogecoin transactions are included in a block. The miners compare the transactions obtained with the previous transactions on the blockchain.
If no data reporting the same transactions is found, the miners validate the new block of transactions.
Such blocks are sent to the Dogecoin network nodes for authentication.
Once nodes test a block of transactions, they enter a form of lottery. Just one node will win the prize from the lottery.
The lottery involves solving a mathematical equation. The node that solves the equation first adds the new block of transactions to the blockchain.
The reward for solving the mathematical equation is 10,000 DOGE.
As the mining process involves vast quantities of energy and time, this incentive is paid to miners for every mined block. This is an opportunity for miners to offer their hashing capacity.
The compensation for mining has not always been the same. Nevertheless, after the 600,000th block had been mined, the developers set up a permanent reward of 10,000 Dogecoin.
How Do I Mine Dogecoins?
Litecoin and Dogecoin combined mining in 2014 and all use Scrypt, which needs less power than Bitcoin’s SHA-256 algorithm. If you’re familiar with Litecoin mining, DOGE mining will be pretty easy for you.
Dogecoin mining is also a lot smoother than Bitcoin as the mining complexity is at least a million times smaller than Bitcoin’s. That also means you can mine a coin with less powerful machines.
The block reward for each block is 10,000 DOGE and a new block is created every minute on average.
Mining Dogecoin in the Pool
Just like any other mineable cryptocurrency, miners have the choice to go alone or operate in mining pools.
Mining pools are communities of users who share their computing resources and receive a share of the block payout.
Pools have higher cumulative processing capacity than single members, and thus most frequently support blocks.
Each miner in the pool receives a small portion of the block’s total reward. Members of the pool typically pay a charge to be part of the party.
Mining Dogecoin solo
When you mine Dogecoin alone, you’re not going to have to pay any mining costs.
But you’re going to be exposed to huge competition, and it could be weeks (sometimes months) before you get to mine a block on the network.
However, if you do so, the whole mining payout is yours.
How to get Started with Dogecoin Mining?
You’ll need a PC running and a functioning internet connection to begin with.
You’re also going to need a Dogecoin wallet to store the mining bonuses you receive.
Ideally, you want to use a powerful CPU (even if the average PC CPU is powerful enough to overheat) or a GPU like the Nvidia GeForce GTX series.
Depending on the hardware you use, you will also need to download the appropriate software to go with it. You will find the app online and download it for both CPU and GPU.
When you’re mining with a GPU, a few tech solutions include CGminer, EasyMiner, and CudaMiner. A CPU miner can be downloaded for free.
A Scrypt ASIC Miner like the Bitmain Antminer L3 is another hardware option. MultiMiner will be the right program to use in this case, but EasyMiner and CGMiner would also function for ASIC miners.
GPU mining will be the most suitable choice for beginners looking for a water check. After that, if you want to be more serious about mining, you might try setting up a GPU or ASIC mining.
Cloud Mining Dogecoin
The best way to gain any DOGE would be to go for cloud mining, so you need to study whether or not you will be successful and how long it takes.
With cloud mining, you basically borrow computing resources from a data center that is paid an annual or monthly bill. The center is mining coins and giving you a share of the income.
The only prerequisite for this is a Dogecoin wallet and the money required to hire out cloud space.
Cloud mining could be easier to set up than your own mining operation. It also eliminates all the technical difficulties found in the mining of Dogecoin.
Nonetheless, contracts could be long-term, and it may be difficult to calculate whether or not you are getting a good return for the money.
Price volatility may also create issues because the cloud mining price is set, and if mining is unprofitable, you will also be bound by the contract.
NiceHash – Similar to Cloud Mining
At NiceHash, you can buy hash power, equivalent to what you might do with cloud mining, except with an interesting difference: you buy hash power from the crowd. People can link their miners to NiceHash and rent out their hash power – NiceHash facilitates the contract! If you don’t want to set up your own miners to procure your Dogecoin, and you’re not interested in traditional Cloud Mining companies, NiceHash is certainly worth a look.
Dogecoin Use Cases
Dogecoin’s website states that the crypto is a decentralized, peer-to-peer digital currency allowing one to transfer money online quickly. Think of it as ‘internet money’.
Dogecoin has also been used by the group in charitable campaigns, such as helping Olympians attend the Winter Olympics and collecting money to build clean water wells in developing nations.
Below are some of the most notable fundraisers of the Shibes:
- $50,000 was collected to support the Jamaican Bobsled Team Trip to the Winter Olympics in Sochi in 2014.
- In March 2014, the group raised $30,000 to construct wells to provide clean water in Kenya.
- The group raised $55,000 to sponsor a NASCAR driver (Josh Wise) who then rode in a Dogecoin inspired car.
As Dogecoin’s transaction times are fast, averaging close to a minute, Doge has also gained popularity as a donation or tipping coin. And a coin used at online bitcoin casinos as well.
Dogecoin can also be used for speculation or kept as an investment with the intention of making a profit. Since its conception, Dogecoin has seen many peaks and troughs in its price, providing a lot of incentives for speculators.
The first exchange offered by the DOGE / USD market was AltQuick.co in 2014. After, the Canadian Vault of Satoshi Exchange was the first exchange to sell the DOGE/CAD trading pair. DOGE can now be exchanged in a variety of markets around the world.
Dogecoin was publicly released on 6 December 2013.
It was developed by Billy Markus, an Oregon engineer, and Jackson Palmer, an Adobe Product Manager.
During the 2013 cryptocurrency craze, Billy Markus decided to create a cryptocurrency that had a less intense vibe than Bitcoin. He claimed that this would cater to a wide consumer base, and that it would also be something special that distinguishes itself from other cryptos.
He joined up with Jackson Palmer, who invented the initial name of ‘Dogecoin’ in a comical tweet. Palmer was urged on Twitter to make his ‘joke’ concept a reality, which he later did with Markus.
The Dogecoin Team & Developers
The Dogecoin Team is made up entirely of volunteers.
The founding duo of Billy Markus and Jackson Palmer is now called “Shibetoshi Nakamoto,” a name meant as a joke on the name of the founder of Bitcoin, Satoshi Nakamoto. Jackson Palmer, however, is no longer involved with the project.
The engineering team consists of names such as Ross Nicoll, Patrick Lodder and Max Keller.
How Has Dogecoin’s Price Fared Historically?
Like other cryptocurrencies, Dogecoin has been subject to major price swings, from a low of $0,0001 at the end of 2015 to a peak of $0.019 on 7 January 2018.
Chart of Dogecoin
Will DOGE Ever Reach $1?
It could happen, but probably not. For Dogecoin to hit $1, it will have to raise 52,531 percent from its current price ($0,0019) which would definitely be ‘much wow’. The incredibly high supply renders it impossible to achieve a high price such as $1 because, while the inflationary aspect increases its probability of being used as a mediator currency, it also lowers its investment value somewhat.
How Can I Buy Dogecoin?
EU buyers can buy Dogecoin directly from www.litebit.eu.
In addition, there are several exchanges that back Dogecoin and sell pairs such as DOGE/BTC and DOGE/ETH.
Binance and Bittrex are the most popular exchanges to do this.
Should I Buy Dogecoin?
This article is not meant to offer financial advice, you should still do your own homework before making any investment.
The blockchain business in the minds of others is a bubble that has already exploded, whilst others see it as a new technology that will inevitably transform the world in the same manner as the internet did.
Can I Buy Dogecoin on Coinbase?
No, Dogecoin is not currently listed on Coinbase.
To buy from Coinbase, it is important to acquire another crypto coin, pass it to an exchange that supports Dogecoin, and then buy it.
Which Wallet Can I Use to Hold Dogecoin?
There are various hardware wallets for Bitcoin that allow Dogecoin storage.
Trezor One and Trezor Model T are supporting Dogecoin. Both the Ledger Nano S and the Ledger Nano X, too. If you’re serious about protection (which you should be!), then get one of these cool hardware wallets to hold your precious DOGE secure.
Next, there are digital wallets for free, such as Dogecoin Core, which includes the entire Dogecoin blockchain and essentially transforms the device into a Dogecoin Server.
Dogecoin co-creator Billy Markus tweeted to remind his fans to update to the newest edition of Dogecoin Core Wallet.
Then there is MultiDoge, a light wallet which stores enough information in order to use Dogecoin but will not transform your machine into a Node.
There are also Offline wallets such as Dogechain, which helps you to access the blockchain without keeping it on your device.
Eventually, there are Hardware wallets, such as the Ledger Nano S which are hardware devices that are fully portable and allow you to store Dogecoin.
How to Transfer Dogecoin?
When you possess a protected wallet, moving DOGE is as simple as pressing a “Send” button in the program.
You only need to indicate the recipient’s address, enter the coin value and a label which allows for easy monitoring of the transaction. Then use a blockchain explorer like Dogecoin official.
How Long Do Dogecoin Transfers Take?
Dogecoin has a one minute block time; thus the total transaction time is around one minute.
How Many Dogecoins Are There in Circulation & Is There a Cap on the Maximum Amount of Dogecoins?
As mentioned above, Dogecoin does not have a supply cap.
For now, there is more than to 118 billion Doge in circulation, with the price being $0.0019.
The estimated market cap is $225,000,000; but, at one point in January 2018, it reached $1 billion for a brief period. The market cap adjusts regularly, and it’s worth testing a site like CoinMarketCap for the current value.
The potential problem with having a supply cap like many cryptocurrencies do is that once that cap is reached, mining could become unprofitable for miners.
This may result in either exceptionally long processing times (due to less motivation to process transactions) or extremely high fees (to allow miners to do so).
To fix this dilemma, the makers of Dogecoin decided to guarantee that the miners would always get the latest Dogecoin as a reward, because there is always an opportunity to mine the Dogecoins.
The Future: What’s Next for the meme coin?
In a recent interview with Blokt, leading developer Ross Nicoll said that he wants Doge to be broadly accepted as a currency for the Internet, and feels that there is an interesting chance to make this possible.
He also wants Dogecoin to become part of the Ethereum Ecosystem. The Dogecoin team is currently working on a connection between Dogecoin and Ethereum that will make this possible.
Even though it started as a light-hearted prank that shed light on the cryptocurrency craze, Dogecoin has grown into a real and significant digital currency.
Dogecoin has one of the largest communities that continues to grow and advance, full of helpful and friendly members, who are in addition working to further normalize the use of the coin.
This has been a major factor in Dogecoin’s success and will continue to be so in the future. Moreover, the loyal community of Shibes is constantly using the coin instead of holding it as a mere investment.
Even after the departure of co-creator Jackson Palmer years ago, the project continued to thrive, partly because of the passionate and enthusiastic Shibe community.