Dogecoin was created back in December 2013. It was developed and launched by two American programmers Bill Marcus and Jackson Palmer. Initially, the currency was supposed to solve two problems and was intended for two main purposes. They did not even try to make money on it, as on most popular cryptocurrencies.
Dogecoin’s main goal was to show the satirical attitude of many users about how cryptocurrencies are suddenly becoming popular, which do not stand out from others.
In 2013, when digital money was in great demand, a lot of altcoins constantly entered the market, which aroused great public interest, but in fact, there was no difference. This popularity was driven more by the phenomenon of electronic money itself, rather than by a specific cryptocurrency.
An example would be BBQ Coin, which at one point had a market cap of $ 8 million. However, today even the most popular sites that list coins do not list this currency.
The second goal was to create an interesting and simple cryptocurrency that would generate more demand than the dominant Bitcoin.
The Future of Dogecoin Cryptocurrency
Dogecoin has had both good and bad times. A major theft of coins was committed by one of the exchangers, which led many Dogecoin fans to abandon the currency. Besides, Dogecoin was removed from the Exodus wallet at the same time, because Exodus claimed that Dogecoin is just a copy of another altcoin and does not have important differences.
“Although we love Dogecoin, it seems to have gone back in time. The coin doesn’t have many upgrades or unique key components that the market needs. The last interesting update was in November 2015. Unfortunately, Exodus is built around support for public Insight servers, and Dogecoin does not have Insight updates. We have done some research and it seems that nothing new will appear shortly”. – said the leaders of the Exodus exchange when they removed the cryptocurrency from the site.
The developers then confirmed that in many ways the coin repeats Litecoin, but they emphasized that it also has a lot of advantages.
Even though Dogecoin is trying to change, many believe that its disadvantages outweigh its advantages. It continues to meet its 2013 targets. Dogecoin is still an inexpensive, simple, friendly, and original cryptocurrency right now.
While the meme dog is almost forgotten, for many users it is still a joking symbol that connects the cryptocurrency market with those who have nothing to do with it at all. Since new users are constantly coming to the market, many of them are guaranteed to use Dogecoin.
How does Dogecoin work and what are the advantages?
Essentially, Dogecoin is an improved counterpart to Litecoin. The developers changed the algorithm of the coin, but for the most part, the new currency retained all the features of the previous version.
For example, it uses the Scrypt algorithm, which was originally designed so that ASICs specialized for bitcoin (and this was exactly the kind of equipment that was then) could not mine this currency. Of course, Scrypt ASIC miners exist today, but they weren’t in 2013.
Dogecoin was designed to have a very large supply of coins. This makes cryptocurrency more accessible. Besides, it does not have a fixed total stock limit. Now we are talking about the fact that an additional 5.2 billion tokens will be produced annually.
Critics of this currency argue that this is the main negative feature of Dogecoin because more coins contribute to the fact that the price of an individual coin will not rise. Indeed, when there was a big jump in value on the market at the end of 2017, the currency rose slightly, but after the price fell, it completely returned to its original level.
But at the same time, due to the low cost of the coin, transaction fees are also significantly lower than other competitors. Usually, sending money in the system has a price, a certain percentage, or a stable cost. The Dogecoin transfer amount has a very low cost.
Dogecoin has many benefits:
- A large supply of coins – hundreds of billions of units, so each coin will have a very low price.
- Mining ability – currency allows mining through mining. The profit will depend on the capacity and performance of the equipment.
- Conversion – The cryptocurrency mining system can convert Dogecoin to any other coin.
- “Cranes” – there are a lot of sites that distribute currency.
- Speed of transfers and confirmation – despite a large number of coins, they are very quickly transferred to other accounts.
It was assumed that the Dogecoin currency would be used as payment for various social networking services, for example, for commenting on Reddit entries or watching videos on YouTube. Although today it is used for a wide variety of purposes, just like more traditional coins.
There are also disadvantages of Dogecoin – high cost, because of which the owner will have to buy and accumulate a large amount to use it for its intended purpose.
