What is Dogecoin?
Dogecoin (DOGE) is a cryptocurrency, the name Dogecoin refers to a popular internet meme on formus like Reddit and 4chan. The logo of the coin is an image of the popular Japanese dog breed Shiba Inu.
Who invented Dogecoin?
Founded in 2013, Dogecoin was developed by software developer Billy Markus who teamed up with Jackson Palmer an Australian businessman and techie to launch Dogecoin. At the moment, the DOGE cryptocurrency is in the top ten of the most popular cryptocurrency coins in the world and many people have made a lot of money with it. Dogecoin started as a kind of joke. People never expected that the crypto coin would still exist in 2021 and certainly not that the market cap would ever reach 64 trillion dollars or 53 trillion euros.
How does Dogecoin work?
Dogecoin is an altcoin of Bitcoin. It uses blockchain technology like many other cryptocurrencies. Initially, Dogecoin was split off from the Litecoin network. Dogecoin started out as an internet meme and was used as a means of payment on social media networks like Reddit and 4chan with the aim of allowing people to send DOGE to each other as a reward (kind of tip) for nice, valuable posts.
Value of Dogecoin
The value and popularity of Dogecoin has increased significantly in recent years, even though dogecoin was created as a joke, the coin has gained a large group of supporters. And when a large party uses, buys and trades a currency, that gives the currency a right to exist. Just like fiat currencies like the euro and the dollar.
Dogecoin experienced rapid growth because of a PUMP of this digital currency (eg Elon Musk who sends a tweet that immediately causes the price of dogecoin to rise). In a pump and dump, a group of people tries to make money by manipulating the value of a coin. By hype it or by spreading misleading information on social media, causing the price of the currency to rise or fall.
In the case of Elon Musk who finds the coin very funny and thereby expresses his support, which gave the coin more wind in its sails. The price increase of Dogecoin also did not go unnoticed and attracted even more people in contrast to the GameStop (GMI) share. The price increase of Dogecoin seems to hold up and the price continues to rise.
Also investor and entrepreneur Mark Cuban, known for the program Shark Tank, is in favor of DOGE. According to Cuban, Dogecoin is the only cryptocurrency that people will actually start using for transactions.
How do you get Dogecoin?
The easiest ways to get Dogecoin are:
- Accept Dogecoins for work
- Mining Dogecoin with special hardware
- Purchase Dogecoin from an exchange
Most investors see Bitcoin as an investment and do not use the currency for which it was designed to buy things. With dogecoin it is different. With DOGE you can pay online for all kinds of products on various websites.
In the United States, there are a number of merchants that accept Dogecoin as a means of payment. For example, New York wine seller Acker announced that it accepts digital currency as a form of payment in its stores.
Dogecoin in space travel
Elon Musk plays an important role in the popularity of the crypto currency, he wants to bring dogecoin to the moon, calling himself the “Dogefather”. Musk's US space company SpaceX has announced that it will launch a satellite called "DOGE-1 to the Moon" to the Moon next year that will be funded entirely with Dogecoin. According to SpaceX, the satellite will collect information about the moon through sensors and cameras.
Buy from Dogecoin
There are several ways you can buy and sell Dogecoin. You can buy Dogecoin from various Dutch brokers. In addition to IDEAL, Sofort, most providers can also pay with Bancontact or via bank transfer or you can trade them on international exchanges. If you own bitcoin, you can exchange it into DOGE via a trading platform such as Coinbase. To buy or receive Dogecoin from people you need a wallet via dogecoin.com you can easily download your own dogecoin wallet.
Buy Dogecoin in the Netherlands and Belgium
- Anycoin Direct
- Bitcoin Master
Buy Dogecoin on International Exchanges
For buying digital coins, see our extensive Buying guide† For each coin it is explained what you should pay attention to and how the purchase process works.
How many Dogecoins are there?
The amount of Dogecoins in circulation is a lot more than Bitcoin where a fixed number of tokens can be mined. A maximum of 21 million Bitcoins can be mined (estimated in 2040) and once the limit is reached, it becomes increasingly difficult for investors to mine more tokens.
Dogecoin vs Bitcoin
There is a big difference between Bitcoin and Dogecoin, the crypto coin has a larger limit on the number of tokens that can be mined. DOGE uses a different protocol, which is Scrypt. The cryptocurrency is therefore derived from Litecoin (LTC), which uses the same protocol. Mining Dogecoin is cheaper than mining Bitcoin due to the lower hardware requirements. In addition, Dogecoin transactions are processed within 1 minute. This is quite fast making it safe for the users. Because of this, the price of DOGE is much longer and the coin is used a lot for small payments and donations.
You can mine Dogecoins on your own or you can join a mining pool. Most beginners join a mining pool. A mining pool that we can recommend is Genesis Mining. Mining DOGE can be profitable, this of course strongly depends on the current price and your electricity price.
What makes Dogecoin so special?
Dogecoin started as a joke but over the years has taken on serious forms. The Dogecoin name has since become a worldwide phenomenon. Most crypto fanatics among us have already heard of Dogecoin, especially if you follow Elon Musk on Twitter or own a Reddit account.
The video below was created by a few crypto enthusiasts.