What is Dogecoin?
Dogecoin is an open source cryptocurrency that enables users to send money peer-to-peer (P2P) over the internet. The most well-known example of a digital currency is Bitcoin, but, Dogecoin’s technology is actually based upon another popular cryptocurrency called Litecoin. Dogecoin recently celebrated its 5th birthday showing the longevity and success of the project. Dogecoin and cryptocurrencies do not rely on a bank or centralized entity to work, so they are often favored by those who value their privacy.
How did Dogecoin Begin?
The first event that inspired the creation Dogecoin was a joke by Jackson Palmer on Twitter in 2013. He tweeted “Investing in Dogecoin, pretty sure it’s the next big thing” which received a lot of interest and caught the attention of Billy Markus, a fellow cryptocurrency enthusiast. Later that year, December 6 to be precise, Jackson Palmer and Billy Marcus officially launched Dogecoin.
Why is it Called Dogecoin?
The name itself ‘Dogecoin’ is inspired by the doge meme. The original doge meme uses a photo posted by Atsuko Sato, who adopted a Shiba Inu, which is a Japanese breed of dog. It’s impossible to tell what the Shiba Inu is thinking in the photo which led to someone interpreting its possible thoughts and adding them to the image. This image was posted onto the internet, and the meme was born, which then went viral.
Jackson Palmer and Billy Marcus were both fans of the doge meme and based Dogecoin upon it. Unlike other cryptocurrencies that were very serious and political, the creators of dogecoin wanted it to be more fun. Dogecoin was the first example of a ‘meme coin’ and is the only one that has enjoyed success. The fun and friendly vibe around Dogecoin has led to the growth of an extremely strong Dogecoin community, one to be envied by many other cryptocurrencies. Since the original doge meme, the Dogecoin community have also created many of their own versions of doge memes which they still post on the internet regularly today.
Where Can You Buy Dogecoin?
Dogecoin can be bought on a number of cryptocurrency exchanges. These exchanges include HitBTC, Bittrex, Poloniex, Kraken, Cryptopia and more. Some exchanges will let you purchase Dogcoin directly with fiat currency like the US dollar, while other exchanges may only allow you to purchase Dogecoin using other cryptocurrencies like Bitcoin and Ethereum. You will also need a wallet to hold Dogecoin once it is purchased, many exchanges will provide wallets, but other options which may be more secure include hardware wallets, desktop wallets, and mobile wallets.
How has Dogecoin Performed?
Dogecoin’s price has been extremely volatile creating the opportunity for both massive gains and losses for those who buy and sell Dogecoin. Dogecoin traded at a low of around $0.000085 in 2015 and a high of $0.019 in 2018. If you purchased $100 of Dogecoin at its lows and sold at its highs, you would have gained more than 22,000% or $22,000. Dogecoin currently trades at around $0.002 and is the 22nd largest cryptocurrency in the world based on market cap.
What Does the Future Hold for Dogecoin?
Although Dogecoin started with a joke, Ross Nicoll, one of the leading developers of Dogecoin, recently said in an interview that they are managing millions of dollars of other people’s money and they take it very seriously. He also said that they are working on an update for Dogecoin which makes it become part of the Ethereum ecosystem and want Dogecoin to be widely adopted as a currency used on the internet in the future. Another project based around the use of Dogecoin is DogePal. In a recent interview, the DogePal founder stated that they are working on a payment system that will enable Dogecoin to be used in farmers markets, coffee shops, and by ‘mom and pop’ type businesses.
If you’re interested in investing in Dogecoin, remember to handle cyptocurrencies only on secured networks. While crypto and the Tor browser goes hand in hand, you are also advised to use a VPN before opening the browser to add an extra layer of security to your connection. A VPN encrypts your traffic to deflect any third-party interception and hacking efforts that might be targeting your crypto wallet. A quality and trust-worthy VPN can be expensive, so look for VPN deals on the internet before you subscribe.