Originally created as somewhat of a joke about cryptocurrency, the token became fairly popular with cryptocurrency fans. The community and developer humor included in the project adds to its appeal and is probably what has made it last longer than many other cryptocurrencies. Dogecoin is an altcoinc with a large userbase, and is traded against both fiat currencies and other cryptocurrencies on several reputable cryptocurrency exchanges and retail investment platforms. Dogecoin differs from Bitcoin’s proof-of-work protocol in several ways, one of which is by using Scrypt technology.
- This monetary characteristic is putting inflationary pressure on the Dogecoin value, which in turn favors its use case as a method of payment instead of it being primarily a store of value asset.
- Dogecoin is considered an “inflationary coin,” while cryptocurrencies like Bitcoin are deflationary because there’s a ceiling on the number of coins that will be created.
- There are about 130 billion DOGE circulating, and miners produce another 10,000 every minute.
- Many different types of businesses accept DOGE including Elon Musk’s SpaceX and the Dallas Mavericks.
- If you wish to purchase DOGE, check our guide on how to buy Dogecoin in 6 steps.
Total Supply
Trader Tardigrade has predicted that Dogecoin could break out of the upper trendline of the Symmetrical Triangle, potentially leading to its upward momentum. The analyst has marked the upper trendline at $0.32, coinciding with Dogecoin’s current market value. Bitcoin’s blockchain has been improved, and layers have been built that give it more uses, but the same can be said of Dogecoin. There doesn’t appear to be any other Dogecoin uses as of (December 2023) besides blockchain fees, which are very low compared to Bitcoin’s and Ethereum’s. Those who bought Dogecoin before the big gains of 2021 have been well rewarded.
Renewed interest spurred by Tesla CEO Elon Musk and other celebrity supporters at the start of 2021 sent doge’s price surging past its previous all-time high. While many other digital assets continued to rise through the second quarter of 2017, doge prices fell below $0.001. It wasn’t until November 2017, ldogecoin when doge’s price found support again from bullish investors.
Dogecoin vs. Bitcoin
Palmer branded the cryptocurrency’s logo using a meme popular at the time that featured the deliberately misspelled word “doge” to describe a Shiba Inu dog. Most people who want Dogecoin believe that it will increase in price and that they will be able to sell it at a profit later on. However, there are countless potential reasons why one might want Dogecoin – it can be used to send transactions across the globe, tip online content creators, etc. Additionally, some people want to own Dogecoin simply because they think it’s funny. Dogecoin uses the Scrypt hashing function, which allows it to be merge-mined alongside Litecoin. In simple terms, Litecoin miners can help secure the Dogecoin network and earn some DOGE alongside their LTC rewards.
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Dogecoin employs the “Scrypt” algorithm, which is less energy-intensive than Bitcoin’s SHA-256. This choice allows for faster processing and makes mining more accessible, even for users without advanced hardware setups. By prioritizing efficiency, Dogecoin attempts to balance security and usability. Dogecoin marketed itself as a “fun” version of Bitcoin with a Shibu Inu dog as its logo. Dogecoin’s casual presentation suited the mood of the burgeoning crypto community. Its Scrypt algorithm and unlimited supply were an argument for a faster, more adaptable, and more consumer-friendly version of Bitcoin.
Fundraising
Since Litecoin is a larger cryptocurrency than Dogecoin, it has a stronger mining ecosystem, and merge-mining provides a lot of stability for the Dogecoin network. Over the years, Dogecoin has become one of the largest market cap cryptocurrencies in the world. The project’s design envisions that the DOGE circulating supply will continue to grow to infinity as Dogecoin has no maximum supply.
+ relevance, and strong community support ensures it will remain a key player in the cryptocurrency conversation. The event led many, including Dogecoin enthusiast Elon Musk, to tweet about the dog’s passing. Not to be confused with the cryptocurrency Dogecoin (DOGE), the Department of Government Efficiency (DOGE) is an agency proposed by Donald Trump after his re-election as President. The department will be headed by billionaires Elon Musk and Vivek Ramaswamy, who will focus on reducing wasteful government spending. There is also a meme coin called The Department of Government Efficiency (DOGE) that should not be confused with Dogecoin.
- Thanks to its Scrypt-based hash function, Dogecoin miners have a chance to earn 10,000 DOGE via each block reward.
- This chart, illustrating Dogecoin’s price action from 2014 to the present, highlights periods of consolidation, breakout, and parabolic growth.
- Bitcoin continues to rise in value because of the system’s lifetime cap on the number of coins that can be created.
- Dogecoin is an open source peer-to-peer (P2P) cryptocurrency launched in December 2013 by software engineers Billy Markus and Jackson Palmer.
- Dogecoin is similar to Bitcoin, Bitcoin Cash, Litecoin, which are also Proof-of-Work coins that offer simple transaction functionality.
Dogecoin is a cryptocurrency launched on December 6, 2013 by Billy Markus and Jackson Palmer. Dogecoin originated as a parody of Bitcoin, and adopted the popular »Doge« meme as its mascot. From a more technical perspective, Dogecoin originated as a fork of Luckycoin, which is itself a fork of Litecoin. From a technical standpoint, Dogecoin originated as a fork of Luckycoin, which is itself a fork of Litecoin, one of the oldest and most trusted cryptocurrencies in the sector. In its early days, this blockchain design component allowed Dogecoin to take advantage of the legacy and well-established crypto like Litecoin to solidify its status among the largest cryptocurrencies. It took over three years for doge to reach that level again, after it experienced a prolonged period of low trading activity as hype for the token waned.
The pink arrow in the charts suggests a bullish breakout to Dogecoin’s next price target. Our community is about connecting people through open and thoughtful conversations. We want our readers to share their views and exchange ideas and facts in a safe space. Amilcar has 10 years of FinTech, blockchain, and crypto startup experience and advises financial institutions, governments, regulators, and startups. However, the regulatory framework for cryptocurrencies can vary significantly from country to country, so make sure to check how cryptocurrencies are regulated in your country before making any investments. The table above shows the number of days which Dogecoin closed above a certain price level.
Centralized exchanges remain one of the most popular means to purchase DOGE but peer-to-peer purchases are also possible as long as participants have the right wallets set up. While both Bitcoin (21 million) and Litecoin (84 million) have a cap on how many tokens may ever be in existence, Dogecoin doesn’t feature any such limitation. Thus, the exact figures will change over time with more DOGE being created every minute. The often wild popularity and rallies in the price of DOGE often work in its favor safety-wise, as when the price rises, so does the profitability of mining. This causes more miners to start mining DOGE, meaning more computational power is dedicated to the network’s security.
A Doge miner can mine the digital currency on Windows, Mac or Linux, and with a GPU. As of 2014, you can also mine Litecoin in the same process of mining Dogecoin, as the processes were merged. Scott Matherson is a leading crypto writer at Bitcoinist, who possesses a sharp analytical mind and a deep understanding of the digital currency landscape. Scott has earned a reputation for delivering thought-provoking and well-researched articles that resonate with both newcomers and seasoned crypto enthusiasts. Outside of his writing, Scott is passionate about promoting crypto literacy and often works to educate the public on the potential of blockchain.