What is Dogecoin: The Memecoin that Keeps Going
Dogecoin is by design a joke coin. But it has a unique role in the world of cryptocurrencies, even in the wild markets of 2017.
Dogecoin is one of the few sub-penny altcoins in the top 100 of CoinMarketCap. And despite the unlimited supply and sub-penny price, this cryptocoin, initially conceived as a joke coin, has made some serious claims to fame.
Dogecoin is a decentralized proof-of-work coin based on the Scrypt algorithm. The hash rate on the network has been rising rapidly since April last year, but it is still tiny compared to Bitcoin. It is at a peak above 17 TH/s.
If you have not at least glimpsed the Doge meme, you must have been living in a cave. In 2013, two things happened- Bitcoin was very hot for a while, before the Mt. Gox exchange scandal. And a picture of a Shiba Inu dog became the top meme for the year, according to Know Your Meme. Around 2013, users were cynical about Bitcoin because of its relationship with the Silk Road website, so the appearance of a fresh altcoin that was not serious but fun was more than welcome.
Hence the Doge meme, with its garbled English grammar- much crypto! So DOGE!
At that point in 2013, Litecoin and a few other altcoins already existed- so Dogecoin arrived on a well-prepared scene that already had adopted the idea of cryptocurrencies. It became instantly popular and even had a brief price spike just after the release. But the unlimited supply kept the price below a penny, with a peak at $0.001. Initially, the supply had a limit at 100 billion DOGE, but the limit was lifted, and now mining can produce an infinite amount of new tokens.
Billy Markus, one of the creators of Dogecoin, wanted to create a coin that differentiated itself from the bad fame of Bitcoin back in 2013 when it was related to the Silk Road website.
Jackson Palmer, the co-creator, is serious about cryptocurrencies, despite the creation of a joke coin that uses Comic Sans in its wallet. He has taken an indefinite leave of absence from the project, but remains active observing and testing the new blockchain-related projects.
And he should know about hype- after all, Dogecoin was built on little but hype. Recently, Palmer released a video talking about the overheating ICO market, where everyone can build a token and sell it. All the while, Dogecoin has been producing unlimited new coins and may prove more stable than ICO tokens.
Dogecoin is based on the LuckyCoin protocol, which is a fork of Litecoin. So essentially, Dogecoin is Litecoin, and the two tokens are even mined together, on machines suitable for the Scrypt algorithm.
What to Do with Dogecoin
Dogecoin is cheap- you can play around with it. Using cryptocurrencies may be a hassle- you need to get used to good passwords, backups and sending and receiving addresses. Dogecoin may help. The Dogecoin wallet is essentially a Litecoin Core wallet written in Comic Sans. Well, and a picture of the Doge, just for fun.
But it has all the functionalities of a Litecoin wallet. You can get used to moving tokens around and even if you mess up and lock up the wallet, you may only lose very little money. Which is great, because the Dogecoin wallet has all the glitches of Litecoin Core, but without the risk of losing valuable, high-priced Litecoin.
You can shop with Dogecoin, and it is much more widespread than other tokens. You can even buy a physical Dogecoin with digital Dogecoin.
And you can trade Dogecoin speculatively, as even this token is making rather robust gains on the increased general interest in cryptocurrencies. Dogecoin has increased in price 10 times since its September 2016 positions, and while this is tame by cryptocurrency standards, it still shows a robust interest in the token, with trading volumes of a few million each day.
Dogecoin also teaches lessons about cryptocurrencies. Its price has gone up 300% and down 80% in a day. Trading volumes surpassed those of Bitcoin for a while in 2014 and then fell to almost nothing. All the while, Dogecoin has had a helpful community that is still around.
The main markets where the Dogecoin price is forged are Jubi and Poloniex. Jubi reflects the interest in China, where Dogecoin is still highly popular, and Poloniex is where Bitcoin whales swim occasionally, and may move the price of Dogecoin.
As of September 4th, when the cryptocurrency markets were undergoing a rapid drop in prices, Dogecoin moved to very different logic, with very different prices.
But the easiest way to get Dogecoin is though Changelly, where you may get a lot of DOGE for half a Litecoin. Get them for experimenting and paying for online gaming.
Or get them to hold just in case- some countries in a crisis suddenly get interested in Dogecoin. It's a means of payment, after all, with a working network of miners.
So it is no surprise that Venezuela is among the leading regions where people search for Dogecoin after the national currency has started to fail.
Dogecoin Market Price
Like many other altcoins, Dogecoin has seen spikes and turbulence. In the summer of 2017, Dogecoin peaked at $0.003, and it had a small run up to $0.002 before sliding down again, mostly on selling in Asian markets.
Get Dogecoin for Free
There are ways to get Dogecoin for free, so you do not even need to go through a lengthy process of buying a ramp currency and exchanging it. One way is to simply ask politely around the Reddit community. Tipping is usual for Dogecoin users, and users could send tokens to test your wallet.
Why Dogecoin is Different
Dogecoin is a self-depreciating project. It was meant to be fun, and not a project for quick gains. And it is exactly this humor that is important in the overheated market for new tokens created for dubious reasons.
The good thing is, Dogecoin works. And despite talks of being outdated and abandoned by miners, in fact, the hash rate has gone up and the token is still used and sought-after.
So while Dogecoin is satire, unlike "Useless Ethereum Token", it also offers value.
The Verdict on Dogecoin
Dogecoin is a token that anyone could have- and should have. Such crypto. So money. Wow!