In the first three quarters of 2021, Dogecoins highs were around the $0.68 mark. Although this skepticism doesn’t stop users from hoping that Dogecoin goes to the moon! Much of the community, particularly older members, are skeptical of speculation about Doge’s potential prices. Many of the community members prefer to think of Dogecoin as a currency in its own right, often repeating the refrain “1 Doge = 1 Doge”. Miners Are Rewarded With Dogecoinĭogecoin’s creator sought to solve this problem by ensuring that miners would always be rewarded with new Dogecoin and so there would always be an incentive to mine more coins.Īn inflation-based approach was also designed to replace lost coins and keep Dogecoin at a stable 100 billion coins.Ī semi-comical sketch by the Dogecoin community – Image via CleanPNG
Transaction fees and blockchain efficacy are also greatly dependent on whether the coins are mined, minted, or transactions are verified via staking the native coin. This would either lead to unacceptably high fees in order to encourage miners or very long transaction times as there would be no incentive to process network transactions.
The potential problem with this is that once the cap is reached it may no longer be profitable for miners to continue to sustain the system. When a cryptocurrency, like Dogecoin, is inflationary, it means that there is no maximum limit to the number of coins in circulation.īitcoin, Cardano, Ethereum, and many other cryptocurrencies are designed with a hard supply cap of coins. The main thing that separates Dogecoin from most other cryptocurrencies is that it is an inflationary, rather than deflationary, cryptocurrency. This run was given a further boost when Elon Musk began tweeting about Dogecoin, calling it the “cryptocurrency of the people”. In 2021 Dogecoin saw a major price surge, partially thanks to an influx of users chasing GME style highs.renDOGE is an exact representation of Dogecoin on the Ethereum blockchain - Ren has been designed to enable such cross-change operability to increase collective crypto asset liquidity. Also in 2021, the Ren project allowed DOGE to be accessible on the Ethereum network as a ‘wrapped’ coin named renDOGE.Dogecoin’s highest all-time market capitalization according to was over $88 billion in May 2021.For some years, Dogecoin didn’t see much development while Jackson Palmer left the project by declaring that he was going on an “extended leave of absence”.It’s similar to a “like” but with more impact. Users will tip other users for posts or contributions that they believe deserve recognition. One of the most common uses for Dogecoin today is as a tipping service.
This community has come together to fund a number of charitable efforts and other projects. Dogecoin has one of the largest and most active communities in the cryptocurrency world.Even its name is taken from a popular Internet meme. Dogecoin turned out to be a light-hearted and approachable form of cryptocurrency that reaches users put off by the cold complexity of Bitcoin and other cryptocurrencies considered more sophisticated.When he was contacted by programmer Billy Markus, they decided to turn Dogecoin into a reality. Dogecoin was originally founded as the result of a joke made by Jackson Palmer in November 2013.The true value of Dogecoin lies in the strong and vibrant community that sprung up around it. The cryptocurrency hasn’t seen any major updates since 2015 (although it is able to benefit from improvements to the Litecoin code). Dogecoin was originally designed to be a more approachable alternative to Bitcoin, Litecoin, and other cryptocurrencies.Īs such, there aren’t any groundbreaking technicalities that set Dogecoin apart from the pack. Less technical speculators who value a cryptocurrency’s alternative-pop status may find it an entry point into the crypto world.ĭogecoin is a cryptocoin based on Luckycoin (which is, in turn, based on Litecoin). The Dogecoin community has catapulted DOGE to cult status. Dogecoin was created as a joke but eventually found a purpose as a more friendly, approachable alternative to Bitcoin.
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