The definition of Dogecoin
Dogecoin is another cryptocurrency which was initially introduced as a joke currency. After its launch on December 6th, 2013, the first step it took was to create its own online community. Around January 2014 it quickly reached a capitalization of 60 million us dollars. The schedule of the coin production had a fast initial time as compared to the other cryptocurrencies. However, there are quite a few commercial applications which are also mainstream.
History of the Dogecoin
The Dogecoin was developed by Billy Markus who is a programmer from Oregon. He created Dogecoin to develop a cryptocurrency which was fun and is able to reach more people than Bitcoin. He also wished to keep it away from the controversies which surrounded the other cryptocurrencies. Dogecoin was launched under the altcoin category with a Japanese dog as its logo. In the approach, the Dogecoin looked quite casual but since its launch, it has gained wide acceptance particularly for making online transactions. It is a virtual cryptocurrency and like some other cryptocurrencies is decentralized. Its operations are carried out by making use of the peer-to-peer technology. Dogecoin is a scrypt based cryptocurrency. Dogecoin has enabled fast transactions all over the world.
How is Dogecoin made?
A bank or the government is considered a centralized institution which can print its own physical money. Whereas the cryptocurrency such as the Dogecoin and various others produce new tokens by an approach which is decentralized. The DOGE is created by the Dogecoin community. The basic technology which is behind the Dogecoin is normally based on the Litecoin. The Dogecoin can even be mined by the LTC miners. The Litecoin miners are able to process the Dogecoin transactions for solving complex equations. A new block automatically gets added to the network of the Dogecoin as soon as the equation is solved. The reward for the miner is the DOGE.
The reward system of the Dogecoin network can serve two purposes. It encourages the miners to use the computing power for completing the transactions on the Dogecoin network. The second and more important purpose which it serves is that it regulates the development of the new DOGE. The DOGE is then distributed by the miners.
How is Dogecoin priced?
The cryptocurrencies are highly volatile and highly prone to rise and fall. Just like the other cryptocurrencies, the Dogecoin is also characterized by these features. Dogecoin has particularly experienced price changes which have been quite abrupt. The media attention has also been the major price driver for the DOGE. However, the surges due to the media attention are often followed by sharp dips since the traders get to engage in the profit-taking. It is possible to predict these crashes beforehand but it still remains risky and the user might end up losing the money instead of making a profit.
How is Dogecoin different from the other cryptocurrencies?
- The Dogecoin is the only cryptocurrency which was introduced as a fun cryptocurrency, unlike all the other cryptocurrencies.
- Dogecoin charges significantly fewer transaction fees as compared to the other cryptocurrencies for remittances. This is possible because the value of the individual token is comparatively low.
- The Dogecoin also has a reputation as the tipping system with various websites through which the users can tip the other users in the Dogecoin.
The difference between the Dogecoin and Bitcoin
The Bitcoin is a popular and leading digital currency in the market and hence it is more accepted by the merchants than the Dogecoin. There are various factors on which Dogecoin and Bitcoin differ. These include fast confirmation of the transaction time which is quite impressive. As compared to Bitcoin, the Dogecoin is able to expand so long the miners continue to operate. As compared to Bitcoin, the acceptance rate of the Dogecoin is low and the users are ready to exchange the Dogecoin for the Bitcoins. Every ten minutes the Bitcoin will have a block whereas the Dogecoin will have a block every minute.
The benefits of the Dogecoin
- In a period of just ten minutes, it is able to process nine times the transactions processed by the Bitcoins. It is also capable of processing two times more transactions as compared to Litecoin in a period of just two minutes.
- The price for all the altcoins would be quite higher if the Dogecoin would have been adopted in the last 12 months by payment processors.
- The liquidity of Dogecoin has been increasing steadily.
- Unlike the major cryptocurrencies, the Dogecoin is a cryptocurrency which is inflationary. This feature will ensure the survival of the currency in the future.
- The community is strong and vibrant which has helped the Dogecoin to survive.
The disadvantages of the Dogecoin
- There are very few updates introduced recently.
- The coins are in high supply in the market and it is most likely that the coin will not reach 1 dollar in the near future.
The future of the Dogecoin
When it is considered from the point of the view of the investment, the continued inflation is not good. There are more chances that the user might not get the expected returns on their investment. The Dogecoin has also become directionless after the departure of the creator of the project. The development community of Dogecoin has not done anything great for the last 2 years. Despite the benefits over other cryptocurrencies, these factors are enough reasons for not investing in Dogecoin and its downfall in the future.
What is Dogecoin? Everything you need to know
Introduction of Dogecoin
Dogecoin is another cryptocurrency which was initially introduced as a joke currency. After its launch on December 6, 2013, the first step it took was to create its own online community. Around January 2014 it quickly reached a capitalization of 60 million us dollars. The schedule of the coin production had a fast initial time as compared to the other cryptocurrencies. However, there are quite a few commercial applications which are also mainstream.
The Dogecoin was developed by Billy Markus who is a programmer from Oregon. He created the Dogecoin to develop a cryptocurrency which was fun and is able to reach more people than the Bitcoin. He also wished to keep it away from the controversies which surrounded the other cryptocurrencies. Dogecoin was launched under the altcoin category with a Japanese dog as its logo.
In a period of just ten minutes, it is able to process nine times the transactions processed by the Bitcoins. It is also capable of processing two times more transactions as compared to Litecoin in a period of just two minutes. The price for all the altcoins would be quite higher if the Dogecoin would have been adopted in the last 12 months by payment processors. Unlike the major cryptocurrencies, the Dogecoin is a cryptocurrency which is inflationary. This feature will ensure the survival of the currency in the future
There are very few updates introduced recently. The coins are in high supply in the market and it is most likely that the coin will not reach 1 dollar in the near future.
When it is considered from the point of the view of the investment, the continued inflation is not good. There are more chances that the user might not get the expected returns on their investment. Despite the benefits over other cryptocurrencies, these factors are enough reasons for not investing in Dogecoin and its downfall in the future.