EVERYTHING ABOUT DOGECOIN
Named after a famous Internet figure, Dogecoin aims to become a more accessible and friendly cryptocurrency. In this way, people think that users can be accessed, and thus get rid of the complexity of Bitcoin.
Following Bitcoin and Ethereum, new cryptocurrencies continue to make their way onto the global stage. Dogecoin is one of them, with a 20% rise on April 13th.
What exactly is Dogecoin? In a nutshell, Dogecoin is a cryptocurrency created by software programmers Billy Markus and Jackson Palmer, who set out to provide a quick, amusing, and fee-free alternative to traditional banking. The popular internet meme in the Dogecoin logo and name is a Shiba dog a.k.a. Doge.
Is Dogecoin a speculative bubble that will break soon? Is it a virtual currency, such as Bitcoin, that will dominate the world of cryptocurrencies? Investors are curious in the solution to this question.
FOUNDATION OF DOGECOIN
Dogecoin is a satirical cryptocurrency that was launched in 2013. The mascot of Dogecoin is a Japanese shiba inu dog, and it references to an internet joke that started in 2010. Dogecoin was established without much consideration, according to Jackson Palmer, a product line manager at Adobe, and Billy Markus, a software engineer at IBM. Markus based Dogecoin’s protocol on the Luckycoin and Litecoin cryptocurrencies that were available at the time.
Dogecoin is a Litecoin-based electronic money. Dogecoin was launched on December 6, 2013, and it swiftly grew its own internet community, eventually reaching a market valuation of US$5.4 billion on January 28, 2021. Its market value had surpassed US$62 billion as of May 4, 2021. The total number of followers of the r/dogecoin subreddit on Reddit has reached 781,000 as of February 2, 2021. “To the moon!” is Dogecoin’s motto.
From the perspective of the Dogecoin market, it is well known that this coin has one of the largest and most active communities. This cryptocurrency, which is widely used for tipping services, is also the first choice for various project financing. In the form of prompts, users prompt other users of contributions or senders that they think should be identified.
Palmer, who was working in the Marketing Department of Adobe Systems in Sydney at the time, is credited for bringing the Dogecoin concept to fruition. Palmer had purchased the name Dogecoin.com and used Comic Sans to add the Dogecoin logo to the homepage. After discovering the website, Markus contacted Palmer and began working on the cryptocurrency.
REASONS WHY DOGECOIN RISES
First, the market value of Dogecoin is much lower than Bitcoin or Ethereum. The price of Dogecoin (DOGE) launched as a “memetic token” (imitating symbol) rose to $0.013, an increase of nearly 45% within 24 hours. DOGE’s market value exceeds 1.4 billion U.S. dollars, and its daily trading volume reaches 1.3 billion U.S. dollars.
One of the factors behind the rise of DOGE is cited as the development of DeFi experienced by memecoins (imitation coins). renDOGE is a tokenized version of DOGE, which started trading for decentralized financial users on the Ethereum network.
The most important feature that distinguishes Dogecoin from other cryptocurrencies is that it is inflationary, not deflationary. Therefore, there are no restrictions on the circulation of Dogecoin. When Bitcoin and similar currencies reach the upper limit, it will not be profitable to continue mining after a period of time. Therefore, Dogecoin also has advantages in long-term transactions.
The Reddit SatoshiStreetBets community takes a similar stance to Dogecoin as GameStop (GME). This movement can be called “Bomba” and began when people were called to support DOGE. As we all know, Tesla CEO Elon Musk also speaks from time to time, DOGE has made a big leap with this support.
On the cryptocurrency exchange CoinMarketCap.com, Dogecoin is ranked 17th for the largest virtual currency. The market value of Dogecoin is $ 9.2 billion. This number reached 1 trillion US dollars in Bitcoin and 247.27 billion US dollars in Ethereum.
A cryptocurrency with a large market capitalization is more difficult to grow as fast as a small cryptocurrency such as Dogecoin. The transaction volume also confirmed this.
According to data from CoinMarketCap.com, 4.6% of the Bitcoin market value was traded in the past 24 hours (April 13), while Dogecoin’s share reached 35%. Another reason for the rapid appreciation of
Dogecoin is not only the high demand, but also the different supply. Dogecoin permanently issues 5 billion cryptocurrencies every year. This means supply constraints for inflation.
On the other hand, Bitcoin, which aims to not exceed 21 million Bitcoins, has a deflationary supply structure.
One of the factors influencing Dogecoin is Elon Musk. He recommends that people considering investing in Dogecoin not only buy this cryptocurrency, but also use other virtual currencies to diversify their portfolio.
Because bullish volatility is also becoming a strong downside risk. Elon Musk is one of the factors that led to the rapid increase in the value of Dogecoin. Musk occasionally shares Dogecoin on his social media accounts.
The last reason for the “super” performance of Dogecoin is that most of the virtual currency is in the hands of a group. According to a report in the Wall Street Journal on February 17, 28% of the total supply of Dogecoin is in the hands of one person.
HOW TO BUY DOGECOIN
To buy Dogecoin, people have to participate in cryptocurrency exchanges like Binance. Most of the people who use this money trade on Binance. First, you need to create an account. After confirming your account, you can log into investment transactions.
You can deposit money into your account by wire transfer, wire transfer, or other encrypted wallets, and you can also use the money in your account to receive Dogecoin.
There are several considerations for depositing money on cryptocurrency exchanges. For example, you only need to deposit money into your personal account via wire transfer, electronic transfer or encrypted wallet. In addition, you must send it from a personal, demand, and legal account opened in your name. In most exchanges, you are also not allowed to send from accounts belonging to other people.
Since the sender information cannot be confirmed when submitting via ATM, your acceptance cannot be submitted. The amount you send will be immediately reflected in your account on the cryptocurrency exchange.
Some transactions have higher security measures. After this process, it is important to write the code that was sent to you in the description field. An explanation must be provided; otherwise, the transaction fee for the transfer will be deducted from the payment you send.
For those who have the idea of buying Dogecoin, Dogecoin mining is usually the first step. In the simplest form, due to the transaction confirmation on the Dogecoin blockchain, the transaction will receive a new Dogecoin as a reward. However, in order to perform this confirmation, it is necessary to solve complex mathematical equations. For this reason, a computer equipped with powerful functions is preferred.
When mining Dogecoin, compared with other cryptocurrencies, there are differences in lock-up time, difficulty level, algorithm, and rewards. For example, the lock-up time of Dogecoin is 1 per minute, while the lock-up time of Bitcoin is 10 minutes, and the lock-up time of Litecoin is 2.5 minutes. Therefore, mining Dogecoin is faster than others.
For mining, users are provided with two different options: solo and mining pool. Alone, this person does the work by himself. In the group logic, there is a group of users who aim to approve transactions and get rewards when sharing and increase their processing power. If you mine within the scope of the mining pool, you need to pay a fee. In addition, when the reward is received, part of it will be left to the person.
When mining alone, the waiting time is long and the risk is slightly higher. In other words, the waiting time to get the first block reward can be weeks or months. However, when a prize is won, it will not be shared, everything depends on the user. When determining the profit to be made, the current valid price of Dogecoin in USD will be valid.
Dogecoin is one of the most listened to cryptocurrencies recently, appearing in December 2013. Today, as cryptocurrencies for investment and trading purposes are more popular, Dogecoin and its derivative digital currencies are on the agenda.
Dogecoin was created by Jackson Palmer and Billy Markus to create an interesting payment system without the traditional bank transaction fees. As of January 2014, the coin’s total transaction volume has surpassed many cryptocurrencies, including Bitcoin. Dogecoin continued to rise, reaching a peak of $ 0.017 on January 7, 2018.
Since Dogecoin is not intended to innovate blockchain technology, its transfer is carried out through the blockchain network established by Litecoin cryptocurrency. Updates from the Litecoin network also apply to the Dogecoin network. When
Dogecoin first appeared, for investment purposes, a random reward was given to the user every time a block was mined. Later, the reward became static.
After all, Dogecoin is a cryptocurrency that marks the new century.
Related Article: What is Altcoin?
Social Media: Instagram