You’ve probably heard about the famous Dogecoin cryptocurrency, since it became one of the most-talked about cryptocurrencies in the world lately. So, what is the fuzz all about?
Well, Dogecoin refers to the ultimate open source, peer-to-peer cryptocurrency that is worldwide known as ‘the meme coin’. Most people also know it as the alt coin or the proof-of-work coin.
It was launched in December 2013, primarily as a joke with its unique Shiba Inu logo, for which it got its name. The technology of this cryptocurrency is derived from the famous Litecoin and it uses a specific scrypt algorithm.
One of the most remarkable features of this particular cryptocurrency is that it is at a low price and the amount of its supply is unlimited. Today, a large, loyal community of supporters are using it primarily as a tripping currency for content on the social media platforms.
So, how did it all begin?
The revolution of Dogecoin from 2013 until now
Although it was initially created as a joke, compared to the numerous trading cryptocurrencies with a much greater value, Dogecoin reached immense fame and worth over time. The original idea of Dogecoin was to satirize the whole concept of crypto in the first place.
Back in 2013, the product manager of Adobe Inc. Jackson Palmer created this particular cryptocurrency, with the help of Billy Markus, a software engineer, as a parody of all the other cryptocurrencies.
The main goal that Jackson Palmer had in mind in 2013 was to satirize the whole hype about blockchain technology. However, after the unexpected positive feedback across social media platforms, Palmer decided to purchase the www.dogecoin.com domain.
On the other hand, Billy Markus, who had difficulties promoting his own cryptocurrency, discovered all about it and asked Palmer for permission to create the new software behind it. The code was based on the Luckycoin that is derived from Litecoin.
The increment of the value
Both Palmer and Markus launched Dogecoin on December 6 in 2013. Two weeks later, on December 19, the value of Dogecoin increased 300%. It is assumed to be the result of China forbidding its banks from investing in cryptocurrencies.
The interesting fact is that this cryptocurrency used randomized rewards for block mining. Nevertheless, in 2014, this changed to static reward.
How did ‘the fun version of Bitcoin’ gain popularity and real worth
After launching ‘the famous meme coin’, the biggest fuzz happened about its unlimited supply and scrypt technology. There was an argument among the cryptocurrency community about a more ‘consumer friendly’ version of Bitcoin that will be faster and more adaptable.
In January 2014, the community of supporters donated $30,000 to fund the Jamaican bobsled team for the Sochi Winter Olympic games. In March that same year, $11,000 was donated to build a wall in Kenya, and $55,000 for sponsoring Josh Wise, NASCAR’s driver.
The period between 2017 and 2019
During 2017-18 the value of Dogecoin skyrocketed, while in 2018 the value fell. When this cryptocurrency was at its height, it was traded for $0.018 and the market cap of it was a remarkable $2 billion.
In the summer of 2019, the crypto exchange Binance listed the coin which was a huge thing. Many people considered the tweet of Elon Musk, the CEO of Tesla, to be the main reason for the increase of its value and popularity.
Dogecoin in 2020 – why Scrypt miners prefer this cryptocurrency
As of December 21 in 2020, the market cap ranking of this cryptocurrency was 43. The capitalization of $611 million. It’s clear that there are numerous active miners of this cryptocurrency and that Scrypt miners prefer Dogecoin.
The hash rate of Dogecoin is below Litecoin, which is roughly 150 TH/s. Miners who mine Litecoin also choose to mine Dogecoin because they can mine them simultaneously using the same work and, more importantly, because merge mining Dogecoin increases profits.
Interesting facts about Dogecoin
- Dogecoin has a large community of followers worldwide
- It has several safety levels partially based on the number of nodes of cryptocurrency
- Platforms for its exchange provide convenient ways for its purchase
- The wallet of Dogecoin is inspired by the Litecoin
- In the cryptomarket, it has the largest circulating number of coins
- It’s mining process is one of the fastest. At least 9898.15 can be mined per day
- One of his greatest supporters is Elon Musk
- It is widely represented across social media platforms since its origin