You may have come across the term Dogecoin before but may have no idea what exactly it is. Simply put, Dogecoin is an altcoin with a growing community.
How did Dogecoin start?
The story goes all the way back to December 2013 when Bitcoin was finally making a name for itself in the crypto world and it was finally being taken seriously by people. But, there were two people who thought that cryptocurrency had all the fun sucked out of it. These two people were Billy Marcus and Jackson Palmer. They wanted to bring back the fun in Crypto so they decided to create their own coin: Dogecoin.
Launched on December 6, 2013, Dogecoin got its mascot from a very popular meme. this name of Shiba Inu dog was chosen because it was fun and there was already a considerable following. The way it is spelled and pronounced was borrowed from a very popular internet puppet show.
What started out as a funny joke has now become a huge part of the community. Dogecoin is often referred to as the ‘friendly coin’ and for good reason. It has been known for charity donations and other good causes.
Dogecoin fans call themselves Shibes and they also have their own little Shibe language which is made up of funny broken English terms.
So, how is Dogecoin used?
Dogecoin is generally used for good causes around the world. The community raised 50,000 USD to help the Jamaican bobsled team get to the Winter Olympics in 2014. They also raise 30000 USD to help build clean water wells in the Tana Valley in Kenya in the same year. Dogecoin has a very active social media community On Reddit where the group can tip each other with Dogecoin for posting good content.
What is dogecoin worth?
You may be tempted to convert your BTC to Doge after reading up on all the good work that the community does but is it a worthy investment?
Dogecoin is actually not worth a lot. 1 dogecoin is equal to only $0.002383.
But the bright side of dogecoin is that it has no supply limit which means that there is an endless amount of dogecoin and for that reason, the price will never increase like other coins like Bitcoin that has limited supplies. This makes dogecoin perfect for micropayments which is why it is widely used for tipping and donations. Dogecoin has a market cap of 330,900,232 USD. So it is not entirely worthless. Once you accumulate a considerable amount of dogecoin you can even think of converting doge to BTC.
The Technology behind dogecoin is quite similar to other crypto coins. It works on Blockchain Technology. Every transaction that is made get added to the blockchain and it is completely decentralized. The nodes are responsible for checking each transaction and they get rewarded with new dogecoin. This is known as mining.
What is dogecoin mining?
When a node tries to confirm a transaction it enters a form of lottery. This lottery involves guessing the right code that is given to the newest block of transactions that gets added to the blockchain. The note that guesses the right code gets rewarded with 10,000 DOGE. Dogecoin mining happens at a faster rate than Bitcoin mining which is why it is become so popular for tipping online.
There are four types of dogecoin wallet to choose from –
- Software wallets
- Online wallets
- Paper wallets
- Hardware wallets
Of these four options, paper and Hardware wallets are deemed to be considered secure rather than keeping private keys online because that makes it vulnerable to hacking and phishing scams.
Can you buy Dogecoin with credit card?
There are plenty of cryptocurrency exchanges like Bittrex, Bit-Z that allow you to purchase dogecoin. Livecoin claims to help you buy Bitcoin with credit cards but it is completely up to you to trust them with your private details. If you would like to purchase with a credit card you can always buy Bitcoin first with your credit card on a larger exchange and then convert it to Dogecoin.