What is Dogecoin?
Dogecoin is an open source peer-to-peer digital currency, favored by Shiba Inus worldwide. This is an official motto of Dogecoin. You can find it on dogecoin.com. And this is not the greatest joke about this cryptocurrency yet.
You probably heard about memes. If so, you probably know some prime examples. The Doge is definitely one of them.
On February 23rd, 2010, one Japanese teacher posted several photos of her Shiba Inu dog to the personal blog. During the next 3 years, the photo was reposted on Reddit, 4chan, and many other platforms. Then the internet magic happened. The dog from the original photo became Doge and got internal thoughts expressed in Comic Sans with broken modifiers: "so scare," "much noble," "wow.". A new meme was born and went viral.
In December 2013, The Verge found the original Shiba Inu depicted in the meme and her owner. Shortly before that, Jackson Palmer, who at those times was just a marketing specialist, made a joke. He suggested to combine two hot topics: cryptocurrencies and memes. Billy Markus, a programmer, formed the joke into the working cryptocurrency using open-source Litecoin as a basis. Dogecoin (or DOGE) was officially launched on December 6th, 2013.
So, Dogecoin started as a joke. A sarcastic comment on all the hype around memes and cryptocurrencies.
Very soon the joke got way too far. In the same month, Dogecoin rocketed from $0.00026 to $0.00095 in just 72 hours. Three days later, Dogecoin experienced the first major crash by dropping by 80%.
Since then, Dogecoin had lots of falls and rises. With the help of the faithful community, Dogecoin has become one of the valuable assets on the market. Currently, Dogecoin is in the top 30 by market capitalization according to CoinMarketCap.
The apogee of glory
On December 25th, 2013, shortly after the launch, the first major theft occurred. The online cryptocurrency wallet platform, Dogewallet, was hacked. Millions of Dogecoins were stolen. Although it was in a negative event, the Dogecoin fame skyrocketed that day. It became the most mentioned altcoin on Twitter for a period of time.
The first major hack occurred the same month Dogecoin was launched.
The first hack was also the first time when Dogecoin community showed unity and solidarity. The community started the SaveDogemas initiative to donate coins to the members whose coins had been stolen. A month later, donations covered all the losses.
As a result of all the community activities, the trading volume of Dogecoin briefly surpassed the trading volume of all other cryptocurrencies combined (Bitcoin included). Of course, Dogecoin market capitalization was still way behind the one of Bitcoin. Still, throughout 2014, Dogecoin got a place in the top 10 by market capitalization according to coinmarketcap.com.
Another example of the community strength is Dogetipbot. Dogetipbot was used on Reddit and Twitch to tip users via Reddit comments. In May 2017, Dogetipbot suddenly got offline. The creator declared bankruptcy. All the coins stored in the Dogetipbot system were lost. Still, Dogetipbot was replaced by another bot very soon. The new bot uses blockchain and collects a fee for tipping, so the sudden bankruptcy does not seem to happen again.
Where can Dogecoin be used?
Besides trading, two main purposes of Dogecoin stated by the cryptocurrency creators are tipping and fundraising.
Reddit hosts a bot that allows users to tip each other for posting good content. Facebook has a tipping application with the same logic. You can find a way to tip to content creators on some other social networks.
When tipping is not enough, the Dogecoin community encourages fundraising. There are Dogecoin charities on Reddit like SocksForTheHomeless and PizzaForTheHomeless. In 2014, the Dogecoin community raised $50,000 for the Jamaican national bobsleigh team. The team qualified for the Sochi Winter Olympics, but could not afford to go to the event. In the same year, the community also raised $55,000 to sponsor NASCAR driver Josh Wise. All these examples inspire smaller charity and fundraising successes.
Dogecoin pros and cons
The main Dogecoin disadvantages are:
- Non-profitable mining.
Dogecoin deals with large number of coins that are not so much in value individually. That is why the mining of this coin is not profitable. However, this is a reason dogecoin fits for tipping and carrying out smaller transactions so well.
Another disadvantage is that Dogecoin is an inflationary coin. Inflation limits the Dogecoin potential as a mean of investment and one more reason why mining is not profitable.
The main Dogecoin advantages are:
- Strong community.
- Actively used as a transactional currency.
- Widely accepted.
Dogecoin differs from other digital currencies with an amazing community that really uses the cryptocurrency.
The community saved Dogecoin not once. The first major hack losses were reimbursed with donations made by community members in just a month.
The community sees Dogecoin as a transactional currency rather than a speculative asset. “1 DOGE = 1 DOGE” is a well-known statement among the community members. It means that no matter what is the Dogecoin price in dollar terms, 1 DOGE always equals to 1 DOGE. This is actually a great thing for a trader.
The community also works on the ways members can use Dogecoin. For example, creates bots and applications for tipping.
The Doge meme was an inspiration for Dogecoin. Dogecoin, in turn, inspires the creation of new memes. The next quote is one of them. Someone asks the famous economist: “Could Dogecoin be soon worth more than gold?”. The famous economist answers: “What the f*ck? No, why would it be?”. This famous economist has no name. It is just another sarcastic comment on cryptocurrencies and the way they are treated by most people.
Still, Dogecoin draws attention of famous cryptocurrency enthusiasts as well. John McAfee once selected Dogecoin as his coin of the week. He tweeted:
Introduced as a “Joke Coin” in December of 2013, the Dogecoin (DOGE) has growth, in four years, into one of the most widely accepted and loved cryptocurrencies in the world. The recent re-interest in DOGE has ignited a well-deserved price hike that I believe will continue unabated.
Besides Nascar racer and Jamaican athletes, there is another interesting side of Dogecoin. Dogecoin was the first major altcoins to post significant increases. That is why some people believe that Dogecoin is the initiator of Altcoin season — a market trend expressed in a major value surge of all altcoins. You can find a detailed overview of this trend in one of the last articles.
Besides hype and tipping applications, developers continue demonstrating their love to Dogecoin. For example, developers from Truebit built a two-way bridge between Dogecoin and Ethereum. Thanks to them you can move dogecoins between Dogecoin blockchain and Ethereum blockchain. Such transactions can be done without third-party exchange, so no fees!
Elon Musk loves Dogecoin too! Some time ago, Twitter was plagued by Ethereum giveaway scams bots. These bots send spamming messages on the feed of famous users, like Musk. The trick seems silly, but lots of new users fell in phishing scams such as “Send 1 ETH and get 2 ETH back”. Elon was really annoyed and asked Jackson Palmer, the Dogecoin creator, how to get rid of the bots. Shortly before that Jackson introduced a script which can automatically block scammers who use profile images of public figures. Jackson sent the script to Elon and tweeted later that he had a great chat with Elon. They discussed that Twitter must use blockchain technology against scammers.
If you still do not believe in Elon's love, here's his another tweet about Dogecoin: “Dogecoin might be my fav cryptocurrency. It’s pretty cool”.
✔ Choose the pair and the amount for your exchange. For example BTC to DOGE.
✔ Press the “Start exchange” button.
✔ Provide the recipient address to which the coins will be transferred.
✔ Move your cryptocurrency for the exchange.
✔ Receive your coins.
Congratulations, you are the proud owner of DOGE now! Wow! So crypto! Very currency!