What are dogecoins?

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istockphoto 1292533844 170667a
istockphoto 1292533844 170667a

Dogecoins are an internet-only virtual currency, similar to bitcoin. They can be used in place of real money for online transactions and peer-to-peer payments, at any time or in any amount. 

Dogecoin was created by Billy Markus from Portland, Oregon, who hoped to create an easy-to-use currency that could reach a broader demographic than Bitcoin. As of 19 March 2015, Dogecoin has a market capitalization of USD$21 million. 

The cryptocurrency has exploded in value in recent months, with over $150 million worth of dogecoins changing hands in the equivalent of just 24 hours.

The sudden popularity of Dogecoin is mainly attributed to it being a clever joke on its own – the creators turned a meme featuring a Shiba Inu dog into a monetary system! 

And unlike many other cryptocurrencies, it doesn’t rely on mining – instead there is a fixed number of coins that have been created from the start.

Doge coin was launched in December of 2013 by Billy Markus and Jackson Palmer. The pair had been working on a project for a while, and came up with the idea of a joke currency in the vein of litecoin. Markus and Palmer decided to take advantage of the Doge meme, which began as an inside joke on Reddit’s “r/dogecoin” forum. 

Some users had started making images of Shiba Inu dogs, with captions explaining how their owners would like to use their new currency.

Bitcoin vs. Dogecoin :

1. The difference between these two digital currencies is that bitcoin has a limit on how many it will ever have in circulation, while every Dogecoin that comes into existence is a result of a computer mining process.

2. The limit for bitcoin is 21 million coins and the currency was created in 2009. Every four years or so, the number of bitcoins will be reduced until the supply reaches its limit. 

3. On the other hand, every Dogecoin is created at the approximate rate of 30 new coins every minute.

4. Bitcoin’s creator, Satoshi Nakamoto, never intended for there to be a set limit on the number of bitcoins in circulation. Instead, he wanted to create a digital currency that was completely decentralized and had no ties to any country or government.

5.  However, Nakamoto designed the system so that it would naturally be limited in order for users to avoid spending an unlimited amount of money on transactions. The official bitcoin website explains:

6. “The software protocol limits the total number of Bitcoins that will ever exist: 21 million. Since Bitcoin is predicted to run for at least ten years, it is likely that the last Bitcoin will be mined in the year 2140.”

7. When Bitcoin was first introduced, each coin was worth less than $0.05. However, the price continued to rise over the next several years and by 2013 Bitcoin had achieved parity with the US dollar. Since then, Bitcoin has only increased in value and its total market cap is now well over $10 billion dollars.

8.  As a result, many investors have started to pay attention to bitcoin andSome believe that it could replace traditional currencies one day. 

9. The value of Dogecoin rose in 2014 and became the most valuable virtual currency in January 2015 when it passed $2.0 billion for the first time.

It took only two months for the currency to pass $1 billion again and by December it had reached $2 billion.

 Then, on December 19th, 2014 the market cap of Dogecoin exceeded $3 billion – Just five days after hitting its all-time high.

Features of Doge coins :

1.Dogecoins are based on the popular “doge” internet meme.

2.Dogecoin is an open source peer-to-peer digital currency, favored by Shiba Inus worldwide.

3.You can use / pay with dogecoins anywhere, even your local grocery store or coffee shop!

4.Dogecoin transactions are fast, cheap and secure – which makes them ideal for buying goods online!

5.Dogecoin price is very low compared to other cryptocurrencies, which gives you more buying power!

6.Dogecoin has low transaction costs compared to bitcoin, which lets you make quick payments even if you are on a budget.

7.Dogecoins are used to buy goods and services, or tip people online. Dogecoin is the best cryptocurrency for small transactions!

8.You can easily mine dogecoins with your own computer at home! Mining dogecoins is even easier than mining bitcoins!

9.Dogecoin network is secured by proof-of-work, so it’s impossible to hack!

10.Dogecoins are issued as “1 doge = 1 doge”, which means their value will stay the same over time!

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