Dogecoin was created as a joke in 2013 by the combined efforts of IBM engineer Billy Markus and Adobe Software engineer Jackson Palmer. They aimed to create a digital currency with a broad user base that could be shared among different people online.
Within a span of 30 days from its launch, over a million visitors came to the Crypto’s website “Dogecoin.com.” The coin had a big “D” as its logo although its current representation showcases the photo of a “Shiba Inu” dog. The same breed of dog is famous as a meme across different social media platforms, explaining why the Dogecoin is also known as a meme-based cryptocurrency.
History Behind The Dogecoin
After its initial launch, Dogecoin remained a relatively popular Cryptocurrency because of its meme status. Although it remains quite low in value, the community behind the coin grows stronger every day.
For instance, in 2014, the Dogecoin community established a fundraiser to raise $50,000 for the Jamaican Bobsled team participating in the Sochi Winter Olympics. The team was short on budget, so the entire Dogecoin community came together to help them out. On the second day of the fundraiser, around $36,000 were raised causing the Dogecoin to Bitcoin exchange rate to go up by 50%.
During the same year, the community also sponsored another athlete, NASCAR driver John Wise. The Dogecoin community gave a total of 67.8 million coins equivalent to $55,000 at the time. In return, Wise posted a Dogecoin poster on his racecar and named it “#98 Moonrocket.” Wise then participated in multiple different races keeping the Dogecoin community at the centre of his career campaign.
Furthermore, in the Nascar ’14 videogame, the developer Eutechnyx added the Dogecoin car as a DLC pack.
All of this is fine and dandy but how exactly is the Dogecoin used?
Here’s How The Dogecoin Works!
The Cryptocurrency is generated by the process of “mining.” A bunch of computers solve cryptographic equations and they do this by validating datablocks and adding them to the larger public record i.e. Blockchain.
The Dogecoin is different from other Cryptocurrencies in the market in two major ways. Firstly, it uses Scrypt technology in its algorithm; it simply means that miners cannot use the SHA-256 rated mining equipment and instead must use FPGA and ASIC devices which are relatively complex.
Secondly, the Dogecoin has no hard cap meaning the supply of Dogecoin is increased every year. According to its founder, it was done to regularly reduce the coins inflation-rate over time.
Dogecoins mainly functions as a form of tipping system which internet users can use online to reward each other for a piece of good content. Additionally, online exchanges also offer different trading abilities including DOGE/BTC and DOGE/LTC.
People online also spend Dogecoin to buy real-world items including a house in one instance and several subscription services.
Because of its meme status, the Dogecoin always remained a fascinating cryptocurrency. Moreover, the community behind the Dogecoin has always been a wholesome bunch. Which is why groups of people and influencers have always tried to pump up the value of this coin.
The value of Dogecoin was first pumped during the cryptocurrency bubble between 2017 to 2018. In July 2020, it the coin’s value spiked again because of TikTokers trying to get it to a dollar.
And very recently, in the backdrop of Reddit’s Gamestop stock fiasco, Dogecoin’s value spiked up again by a massive amount. The influx of support for the coin from high-profile individuals like Elon Musk, Gene Simmons, and Mia Khalifa caused a massive rise in Dogecoin’s popularity.
The result of all the hype led the Dogecoin community on Reddit to grow more than a million members strong. It is also the fastest-growing community on the platform as well.
To say that Dogecoin has become a movement will be putting it lightly as daily thousands of members are hyping up the cryptocurrency by renting billboards, painting murals and going as far as to purchase the biggest digital ad in the middle of Times Square in New York.
The main aim of the Dogecoin community at present is to take the coin’s value to a dollar and probably beyond. What’s surprising is that according to an online survey by a crypto-based YouTube channel, most people are holding anywhere between 4,000 to 10,000 Dogecoins. It means that a major chunk of people are holding an amount that they can afford to lose easily without any major financial repercussions.
A lot of Dogecoin investors see the coin as a long term investment however some experts argue the lack of a hard cap on the currency as a major obstacle in this objective.
Whatever may be the case, the Dogecoin and its surrounding community continue to grow each day. With near-global support from celebrities, influencers and the general public, it looks like the Dogecoin is here to stay.