Dogecoin – What Is Dogecoin
DOGE was created as a lighthearted alternative to traditional cryptocurrencies, but it’s become seriously valuable.
This post will help you understand what it is and how it works.
Dogecoin (DOGE) was created as a lighthearted alternative to traditional cryptocurrencies like Bitcoin in 2013.
The name and Shiba Inu logo (shown above) are based on a meme.
Unlike Bitcoin, which was designed to be scarce, Dogecoin is intentionally abundant — with 10,000 new coins mined every minute and no maximum supply.
For most of its existence, Dogecoin has generally been considered to be an amusing “memecoin” beloved by its community — but with relatively little value.
That changed in 2021: as of April, Dogecoin became one of the ten biggest cryptocurrencies by market cap
With a total value that has topped $50 billion, even though each individual coin is worth pennies.
How is that possible? Because there is a lot of Dogecoin in the world.
Unlike Bitcoin, which is designed to be scarce and resistant to inflation.
Dogecoin was created to be abundant.
There are about 130 billion DOGE circulating, and miners produce another 10,000 every minute.
Abundance is a key part of the idea — Dogecoin (pronounced “dohj coin”) was created as a funny, low-stakes Bitcoin alternative.
As soon as it was launched in late 2013, it began attracting an enthusiastic online community that have used DOGE for everything
What makes Dogecoin valuable?
Like any other asset, the market assigns DOGE a value based on supply and demand.
Given the vast and ever-growing supply, demand has had to surge enormously to drive values as high as they’ve been recently.
That happened in the first months of 2021.
Then prices soared around 7,000 percent — driven by retail investors on Reddit
This included the wallstreetbets subreddit that sparked the “memestock” craze) working together to push prices up, the broader crypto boom.
Couple that with months of seemingly tongue-in-cheek tweets by Tesla founder Elon Musk punctuated by his appearance on Saturday Night Live in May 2021.
Fast-rising DOGE prices in 2021 attracted considerable media attention (as well as social media posts) — which for a time created a cycle that attracted more investors and further increased prices. Whenever an asset sees such dramatic gains, FOMO (or “fear of missing out”) brings waves of new traders into the fold. DOGE remains a highly volatile cryptocurrency, however, and like any investment there is no guarantee that it will go up or down in the future.
Where did Dogecoin come from?
It was launched as a joke in late 2013 by software developers Billy Marcus and Jackson Palmer.
The friends from Reddit who had never met offline, combined two then popular themes in their online circle: the ascendant cryptocurrency Bitcoin.
To its creators’ surprise, Dogecoin caught on almost immediately
The Domain dogecoin.com received more than a million visitors in the first month.
Part of what made Dogecoin funny is that it was (and is) a full-fledged cryptocurrency, with its own blockchain and a mining system similar to the one used by Litecoin.
Historically low prices (for much of its life you could get DOGE for fractions of a penny) and abundance have recently made it attractive for speculators hoping its value will soar.