Home Analysis Dogecoin – a new favorite cryptocurrency

Dogecoin – a new favorite cryptocurrency

by bojan

A digital currency that started as a parody, featuring Shiba Inu dog from the internet meme as its logo, has reached the unexpectedly high value. This joke currency has increased 5 times last month, after a long period of stagnation due to the increase of general interest for cryptocurrencies. This mania for digital coins worries Jackson Palmer, the creator of Dogecoin currency, cause he launched Dogecoin as a joke, not having any expectancy at the time, and thus not having released a software update in the last two years. He thinks that things look a bit scary – to work on a software that powers billion dollars worth network! But let’s start from the beginning and explain the details about this specific currency.

What is Dogecoin?

Dogecoin is a digital currency launched, as we already said, as a fun currency in December 2013. It was created by a programmer Billy Markus with a goal to create a broader reach than bitcoin and to dissociate it from the controversy of other digital coins. Palmer, in addition, turned his idea into reality. He bought the Dogecoin domain and made an attractive website. When it was released globally, after a month, it became the third most valuable Altcoin in the world.

How much is Dogecoin worth?

The value of a single token is about $0.10 and the current market value exceeds the unbelievable $ 1.2 billion. This peer-to-peer coin has risen more than 400% during the last month.

How is the Dogecoin used?

Since this specific digital currency is not expensive, you can literally play around with it. It‘s basically Litecoin Core wallet written in funny looking Comic Sans, but functional. You can keep the tokens moving around, and even if you mess up something, you won‘t waste a huge amount of money. You can use the Dogecoin for shopping and even buy a physical Dogecoin and trade speculatively due to a general boom of cryptocurrencies.

The target group that uses Dogecoins are students and gamers using it to send each other money or play games. Receiving Dogecoins is satisfying because it seems like you are receiving a great amount of money, which immediately reflects on your self-esteem. This currency is also used for fundraising and important causes like funding the children with disabilities. It’s also known for funding the bobsled team of Jamaica to go to Sochi Winter Olympics.

What are the popular Dogecoin markets?

The most popular markets are Jubbi and Poloniex – especially Jubi that reflects the interest of users from China. The easiest way to buy Dogecoins is through Changelly, where one litecoin buys you a lot of doges that you can use for gaming, for example. But in some crisis-hit countries like Venezuela, people show interest in buying Dogecoins after the crash of the international currency.

Can you get some coins for free?

The answer is – yes! You can avoid the entire exhausting process of buying and exchanging currency. You can simply ask around Reddit, and they‘ll eagerly send you coins to test your wallet. Another way to get them is through Moon faucets (reward systems).

What makes Dogecoin different?

Unlike other cryptocurrencies, it was designated for fun, not for quick and easy gains, and it is exactly because of its humor characteristic that it attracts the attention of many users. As a result, there is a hash rate gone up and this joke currency is still used and searched for, and what‘s important – it has a value!

Is there a way for quick Dogecoin mining?

Litecoin and Dogecoin rely on Scrypt encryption that does not allow effective mining. In fact, it‘s not permitting quick mining for even those with powerful hardware. However, it allows effective mining through the use of graphic cards, so the average user would not have to compete with those miners owning pricey hardware.

Dogecoin vs bitcoin

Bitcoin is the original peer-to-peer cryptocurrency that inspired other cryptocurrencies like Litecoin, and Dogecoin is inspired and derived from litecoin. They are both cryptocurrencies based on the same system, using encryption to protect the account information, and having no central authority to regulate their creation and distribution. Bitcoin requires more advanced hardware for mining, while litecoin and Dogecoin as well changed to a scrypt-based algorithm in order to stay consumer-grade hardware friendly. Also, unlike bitcoin, it has no cape limit on the amount of production, while Bitcoin‘s is 21 million. In addition, that‘s why Dogecoin doesn’t have much value (1 Dogecoin equals 0.00mBTC). But it has gained traction as an online tipping system, where social media users give Dogecoin tips to those who provide interesting and attractive content.

Dogecoin on Forex market

Dogcoins are still not accepted by Forex and you can‘t find them on its list of currencies, but it‘s not unlikely that it gets on the list. Then, the trading activity will bring its price to boom! If brokers accept Dogecoin, its demand would lead to increase, and it will, of course, increase its market cap. The increase will also be affected by the bitcoin rate that is much higher and by the transaction time that is much longer.

The future of Dogecoins

The fiat currencies around the world at this point are getting weaker and weaker, losing their value due to the recent global economic crisis. Central banks are printing unbelievable amounts of bills during the last 8 years, and you can‘t print that much money and not devalue the currency. The recent history has shown that cryptocurrencies have increased in value during the crisis. And it‘s logical that Dogecoin will increase at some point in the future as well. Experts predict that the future economic crises will probably affect the dramatic increase of Dogecoin market cap, and cryptocurrencies, in general, will be a safe harbor when the fiat money collapses. The exact estimation of the Dogecoin value cannot be told for sure, but it will certainly be affected by the price of bitcoin. To begin with, Dogecoin has a strong community that’s getting stronger and more supported every day, and it‘s constantly growing, which makes a plenty of room for this popular digital currency to shine in the future!

You may also like