What Is Dogecoin?
How many cryptos get attention from Elon Musk, Mark Cuban, and even beef jerky mogul Slim Jim? This one did. For April 2021, the coin has reached unprecedented highs. It hit 45 cents - up from less than one cent at the start of the year, according to CoinDesk.
Now, what about the Doge coin? What the project is all about and how you can benefit from it? Let’s get to know here. Take a look.
The token is a crypto that was released as a joke in 2013. It was a kind of satirical homage to BTC, having no specific purpose but just to make folks laugh. It was actually named after this internet meme copying the image of a Shiba Inu dog that was bad at spelling. That way, it’s not “dog”, but “doge”.
Later the Doge coin’s popularity exploded when Elon Musk tweeted for no good reason a fake Dogue magazine cover. Ever since he kept tweeting about cryptos. He would share a meme originating from the movie “The Lion King'', tweet “Who let the Doge out” and what he called a tutorial video “D is for Dogecoin.” In April, he showed another interest in crypto, tweeting “Doge Barking at the Moon.”
Musicians like rappers Dogg, Soulja Boy, and Gene Simmons would spread memes and tweets amongst their followers. A well-known consumer brand Conagra Brands (flagship product - jerky snack Slim Jim) hopped on the bandwagon encouraging the cryptocurrency to “go to the moon”. All of that made the Dogecoin price boost.
Thus, the price, having been at about half a cent at the beginning of this year, has now become one of the top five cryptos by market value. Some fans even see it reaching $1 any time soon. Thus, it is just behind BTC, ETH, Binance and XPR. The token’s market worth of $51 B now surpasses the one of Peloton Interactive Inc. and Delta Air Lines Inc.
So, how to buy Dogecoin? Find any exchange that provides this digital currency, keeps it, and allows trading pairs with it. Additionally, a Dogecoin wallet can come in handy, and you can tip the token in any network that supports it.
However, there are certain risks of investing in the Dogecoin price. Cryptos are volatile and likely to experience frequent swings. For example, in 2021 BTC has surged and by April 16 was trading over $61,000. Herewith, in late 2020, the price was less than $30,000. But the cryptocurrency has faced some bounce off a few times this year.
At the beginning of this year, everyone saw Tesla declaring about a $1.5B investment in BTC and starting to accept it as payment for its products.
So, when considering to buy Dogecoin, there’s a chance it can easily lose 90% of its worth, according to Garrick Hileman, research chief at blockchain.com, a crypto transactions organization. He questions all the attention paid to cryptos that have not experienced real-life traction and coming as a joke.
Circulation of Dogecoin
The Doge coin is tasked as an investment and used as money. Every crypto is exclusive and yet they have something in common - their code is built on the litecoin script. However, there are a few essential differences.
Dogecoin will continue to generate new blocks of coins ready to be mined annually, despite the token possessing 129M in circulation. This is why the Dogecoin value is presently estimated at around 80 cents and a BTC cost is around $80,000.
Normally, cryptos are used as currency for buying goods, but Dogecoin cannot boast that common, real-life usage. You can tip online artists with this currency and use it in a few niche markets.
According to Dogecoin news, the token outshines its counterparts for its super passionate online community. Seven years ago, it effectively crowdfunded the involvement of Nascar driver Josh Wise in promoting Dogecoin on his car. The Reddit community has raised funds in Dogecoin to promote good cause initiatives.
Usman Chonan, the economist at the University of New South Wales Business School, once stated that the doge crypto is rather a conflict-free study of networks building around crypto assets than an additional deflationary numismatic tool.
Can You Mine Dogecoin?
You won’t find a ceiling cap on the highest possible dogecoin currency supply. Its current circulation constitutes more than 129B. Dogecoin mining does not need as much technical aptitude as BTC does, yet it’s not an activity for newbies, and perks come as a rival lottery.
The token’s blockchain - Dogechain - is openly on the Web and demonstrates all logs in real-time. This whole system sometimes looks like a lottery since only one node at once can get a bonus - the PC that is powerful enough to approve a new block at lightning speed.
During the whole mining process, one can get the block payoff of 10,000 coins. This token’s one is built on a Scrypt algorithm. Unlike BTC mining, implying the SHA-256 algorithm with way more computer work, the Dogecoin needs less.
According to Dogecoin news, the token can be mined by itself, meaning one user is able to hold the earnings. Herewith, the rivalry is very intensive. Another way is sharing computing power within a band to increase the odds of obtaining the transaction validation lottery.
To kick off, a PC with Apple, Windows, Mac, Linux OS and a reliable Internet connection are required. The central processing unit and graphics card should be solid enough. Another option to include here is using Scrypt ASIC Miners, designed to help mine scrypt-enabled coins like this one.