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A Simple Guide to the Meme Cryptocurrency: Dogecoin

Dogecoin is a cryptocurrency that shot to fame after a tweet by Tesla boss Elon Musk showing his support for the cryptocurrency.

Although less valuable than the other stalwarts of the cryptocurrency market like Bitcoin, Binance Coin, and Ethereum, Dogecoin ranks in the top ten cryptocurrency tokens by market cap. Some people also confuse it with NFT characters. NFT is Non-Fungible Token which is generally built using the same kind of programming as cryptocurrency, like Ethereum. Many are investing in nft drops from reputed NFT projects that has good value. The main difference between NFT and cryptocurrency is that the former is not fungible (that is, it cannot be traded or exchanged for another). Having said that, if you want to be part of this bandwagon, you could check out NFT marketplaces such as Pastel Network or other similar ones to get your hands on some interesting NFTs.

When it comes to the risk factors, the cryptocurrency industry can be seen as pretty high-risk with how they conduct their business. This is why, when new crypto coins like Dogecoin come out they need to have solid card processing software from areas such as https://merchantalternatives.com/merchant-services/merchant-accounts/credit-card-processing-high-risk/, and others like it, as this will provide a solid platform for them to work from and help buyers feel safer with their transactions.

This article will provide a concise intro to Dogecoin and its merits and prospects for financial investors.

History of Dogecoin

Dogecoin was created by two software engineers, Jackson Palmer and Billy Markus. The motive was to create a joking payment method to poke fun at the predominant overblown cryptocurrency speculations of the period.

Despite the nature of its creation, many people bought into the idea and invested early in Dogecoin, seeing it as a potentially rewarding stock. The emblem of Dogecoin is the face of the Shiba Inu canine from the Doge meme.

Introduced to the blockchain community on December 6th, 2013, it has grown exponentially, developing an online community of enthusiasts and investors. Today, it has a market cap of $28.5 billion.

How Does Dogecoin Work?

Dogecoin originates from Luckycoin, Litecoin, and Bitcoin, with the relationship being forks. That is to say that Litecoin is a fork of Bitcoin, with Luckycoin being a fork of Litecoin, and so on.

In the blockchain industry, a fork refers to a divergence in ideals, and subsequently the operating protocols of a cryptocurrency. It happens when the members of the community have conflicting ideals on the predominant consensus protocol. There have been many additions to the blockchain industry since it has emerged, not only with basic cryptocurrencies but with items like NFTs where there are nft events for people to be a part of who want this currency to add to their collection.

The Dogecoin blockchain processes transactions at a greater speed than Bitcoin, at 30 transactions each second. The consensus used is a unique type of proof of work algorithm referred to as Auxiliary Proof of Work.

This unique consensus allows a merged mining procedure, allowing the miners of other cryptocurrencies operating on the Proof of Work consensus to mine Dogecoin along with their coins. The best part of this is that there is no added cost.

Initially, Dogecoin designed its reward blocks to be random, varying anywhere from nil to one million Dogecoins. This would continue until the supply reached 100 billion. However, this target has been attained, with DOGE reaching a circulating supply of 100 billion in February 2018.

With each block mined, miners are rewarded with 10,000 DOGE. There is no supply cap with Dogecoin, and a block is mined every minute. With the unlimited supply cap, the token will be perpetually low.

Dogecoin is based on the same technology as Litecoin, Scrypt technology. The implication is that the hash rates are lower; it requires much less computing power than Bitcoin.

How To Buy Dogecoin

You can buy Dogecoin the same way you would buy other coins like Solana, Tether, Ethereum, and Litecoin. First, you will have to create an account on a platform like Binance, Coinbase, or Coinstats. Many of these platforms allow you to purchase coins using fiat.

Different fiat currencies are supported. Presently, the value of one Dogecoin is $0.215964, which is roughly one-fifth of a dollar. You will have to complete a KYC form before your account is created. Afterward, you should get a hard or cold wallet to store your tokens.

After this, you can begin trading.

Financial Prospects of Dogecoin

Many have argued that Dogecoin has no fundamental value. Others have alluded that “Dogecoin has no apparent commercial or investment use other than as a conduit for speculative mania and the attempt to make a buck”.

According to Curtis Ting, the Europe region MD for Kraken, “investors buy Dogecoin to participate in a self-deprecating joke about their inability to invest wisely, which keeps going as the price of an individual Dogecoin continues to appreciate.”

Dogecoin is highly volatile, seeing that its ownership is in the hands of a few anonymous individuals. Investing in it is a potentially 50-50 situation, with the token having the capability to swing wildly in either direction.

Conclusion

Andrew Lapthore, a leading professional in qualitative strategy stated that Dogecoin was a sample of ‘an increasingly large number of weird and wonderful signs of market excess.’

Whether or not the cryptocurrency increases in value is dependent on several factors, many of which are not visible. Whatever the case, Dogecoin is primed to be one of the most volatile cryptos in the market.

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