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Dogecoin

Updated on January 5, 2024
Article byShrestha Ghosal
Edited byAshish Kumar Srivastav
Reviewed byDheeraj Vaidya, CFA, FRM

What Is Dogecoin (DOGE)? 

Dogecoin (DOGE) is a cryptocurrency two engineers created in December 2013. It gained immense popularity due to its light-hearted take on traditional cryptocurrencies, like Bitcoin. This coin was made as a spoof joke on the various fraud cryptocurrencies spanning the crypto market around that time.

Dogecoin

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The Dogecoin cryptocurrency is based on the Doge meme, a prominent meme in the online community. Therefore, it has a logo picture of the Shiba Inu dog. However, like all other cryptocurrencies, this coin gives its users a secure and decentralized environment entirely free from any third-party interference concerning its transactions.

Key Takeaways

  • Dogecoin is a cryptocurrency software engineers Billy Marcus and Jackson Palmer created in 2013 as a spoof parody of the other cryptocurrencies. They based it on the prominent Doge meme and used the picture of a Shiba Inu dog as its logo.
  • This coin garnered immense attention in the crypto market due to its fun take on other traditional cryptocurrencies. Furthermore, it brought awareness of the various fraud cryptocurrencies prevailing in the market.
  • This cryptocurrency uses blockchain technology and offers its users a private, secure, and decentralized network.

How Does Dogecoin Work? 

Dogecoin is a cryptocurrency traded in the crypto market like all other cryptocurrencies. Its founders initially created it as a satirical parody of different crypto coins. It made the public aware of the innumerable frauds occurring in the crypto market during that time. However, it saw increasing popularity and gained a supportive online community. Various prominent celebrities promoted this cryptocurrency on social media, contributing to high surges over time.

The Dogecoin cryptocurrency works on blockchain technology like its other counterparts, including Ethereum and bitcoin. All the users of the DOGE network have a digital wallet consisting of a private and a public key. Users can transact with others if they know their wallet ID and public key. After a user makes a transaction request, all the DOGE miners are made aware to initiate the transaction process. Then the miners proceed with the transaction operation, and once it is done, both parties get a notification confirming that the network has approved their request for the transaction.

Finally, the receiver’s wallet gets credited with this coin’s requested amount, which marks the transaction’s completion. All transactions through this cryptocurrency are private, secure, and free from any centralized authority.

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Video Explanation in Dogecoins

 

History 

IBM engineer Billy Marcus and Adobe engineer Jackson Palmer created Dogecoin on December 6, 2013. They started it as a joke spoof for other popular cryptocurrencies like Bitcoin. They based it on the famous Doge meme and used the image of a Shiba Inu dog as its logo. The two engineers created it as a satirical parody of the numerous frauds in the crypto market at that time. However, it garnered much attention in the crypto market and became an instant hit.

In 2013, DOGE was very popular among an online community that played around with cryptocurrencies freely. Later in 2014, various online forums like Twitter and Reddit started paying Dogecoin to their content creators, which resulted in this coin’s price surge. As a result, its trading value increased compared to other cryptocurrencies, like Bitcoin.

Soon after, Elon Musk, the founder of SpaceX, appeared as the most prominent follower of Dogecoin. He frequently tweeted on a “Doge” magazine cover, which increased the value of this cryptocurrency. Furthermore, other notable celebrities like Gene Simmons and Snoop Dogg started tweeting and promoting this coin on social media. In April 2020, Elon Musk’s tweet about the DOGE led to an over 600% increase in the Dogecoin value.

Examples 

Let us understand this concept with the following examples:

Example #1

Thirty-three-year-old Glauber Contessoto invested over $250,000 in these coins when they cost around 4.5 cents in February 2021. In April 2021, he became a millionaire of these coins on paper. He plans to buy more coins irrespective of this cryptocurrency’s price falls and rises in the crypto market. Contessoto requests payment in these coins whenever he works with any crypto brand for promotions on social media. Furthermore, he requested that a considerable part of his payment from all his upcoming social media projects be in this coin. This is an example of DOGE.

Example #2

DOGE price saw a significant surge on April 4, 2023. Its price increased by over 20% from $0.08 to more than $0.10. This price surge resulted due to a joke on Elon Musk’s part. He changed the Twitter logo from a bluebird to a Shiba Inu dog image which is also the logo of DOGE. This is an example of Dogecoin.

Chart 

The Dogecoin chart below shows the historic price pumps for this coin. This Dogecoin chart depicts that this coin has experienced wild price movements owing to its popularity as a meme coin.

Chart

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These coins have experienced price surges due to various social media challenges and celebrity endorsements. At times, it experienced price surges for no reason at all.

Dogecoin vs Ethereum vs Bitcoin 

The differences are as follows:

  • Dogecoin: This cryptocurrency was created in 2013 as a spoof of Bitcoin and the Doge meme. Its symbol is DOGE. The approximate market Dogecoin value is $8.2 billion, and over 132 million coins are circulating in the market. The Dogecoin stock is unlimited, but its yearly issuance is limited to five billion coins annually.
  • Ethereum: This cryptocurrency was created in 2015 to sell the processing power of the decentralized network. Its symbol is ETH. It has a $189 billion market capitalization, and over 122 million coins are in the market. It has an unlimited supply but a fixed issuance.
  • Bitcoin: This crypto was created in 2009 as a currency that stores value. Its symbol is BTC. It has a $382 billion market capitalization, and more than 19 million coins are circulating in the market. The maximum limit to these coins is 21 million.

Frequently Asked Questions (FAQs)

1. How many Dogecoins are there?

These coins do not have a limited supply like most other cryptocurrencies. Therefore, its store has no cap as long as this crypto network does not decide to have one. More than 132 billion DOGE tokens circulated in the market in December 2022. However, more than a million new coins are mined daily, implying that this coin has an unlimited supply. Therefore, there is no maximum limit to the Dogecoin stock.

2. Are Dogecoins real?

Yes, these coins are real. It is an altcoin and has a massive user base. One can trade them against other cryptocurrencies and fiat money on various esteemed retail investment networks and crypto exchanges. In addition, online networks like Twitter and Reddit have users who exchange these coins for physical and tangible goods. Furthermore, gambling industries use these coins. Finally, people use these coins for purchases and payments. 

3. Are Dogecoins a good investment?

Unlike other cryptocurrencies, these coins are a good investment because they have an abundant supply. As a result, its price has increased over time, and it has a very encouraging and influential community. Additionally, these coins are cheaper than other cryptocurrencies, and it is a feasible way to invest in the crypto market without spending a lot of money. 

This has been a guide to what is Dogecoin (DOGE). Here, we explain its chart, differences with Ethereum and Bitcoin, history, and examples. You can learn more about it from the following articles –

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