What is Dogecoin (DOGE)?
Dogecoin (DOGE) is an open source peer-to-peer cryptocurrency. It is considered an altcoin and was launched in December 2013 with the image of a Shiba Inu dog named Kabosu as its logo. The Dogecoin blockchain has merit due to its underlying technology derived from Litecoin. Notable features of Dogecoin, which uses the Scrypt (pronounced ess-crypt) algorithm, are its low price and unlimited supply.
Not to be confused with the cryptocurrency Dogecoin (DOGE), the Department of Government Efficiency (DOGE) is an agency proposed by Donald Trump after his re-election to the presidency. The department will be led by billionaires Elon Musk and Vivek Ramaswamy, who will focus on cutting wasteful government spending. There is also a meme coin called The Department of Government Efficiency (DOGE) which should not be confused with Dogecoin.
Key takeaways
- Dogecoin is an open source cryptocurrency created in 2013 by Jackson Palmer and Billy Markus.
- Dogecoin features a Shiba Inu, a Japanese dog breed, as its logo.
- It is based on Litecoin and uses the same proof-of-work technology.
- Dogecoin has a loyal community of supporters who trade it and use it as a tipping currency for social media content.
History of Dogecoin
Jackson Palmer, a product manager at Adobe Inc.’s office in Sydney, Australia, created Dogecoin with Billy Markus, a software developer at IBM. The intention behind the cryptocurrency was to be a way to satirize the hype surrounding cryptocurrencies.
2013-2014
Palmer and Markus launched the coin on December 6, 2013. On December 19, Dogecoin’s value jumped 300%, boosted by China’s policy banning its banks from investing in the cryptocurrency. Markus and Palmer based Dogecoin’s code on Luckycoin, a derivative of Litecoin (a fork of Bitcoin). Initially, they used a random block mining reward, but this was replaced by a static reward in March 2014. Dogecoin uses Litecoin. Scrypt Technology and use proof of work (PoW) on its blockchain.
2015-2024
In the summer of 2019, Dogecoin enthusiasts celebrated the cryptocurrency exchange. Binance listed the piece. As of May 2024, Dogecoin’s market capitalization stood at almost $24.39 billion. Dogecoin’s infrastructure is slowly gaining traction among fans and developers and continues to operate and trade thanks to its active community of miners.
In May 2024, Kabosu, the dog behind the internet meme “doge”, died. The dog’s owner, Atsuko Sato, is a kindergarten teacher from Sakura, Japan. The event caused many people, including Dogecoin enthusiast Elon Musk, to tweet about the dog’s passing.
Dogecoin surpassed the $1 billion market cap for the first time during the 2017-2018 cryptocurrency bull run.
Concerns About Dogecoin
Dogecoin, with beginnings as a memecoin and no blockchain utility other than the existing one, has established supporters who argue – with quite a bit of validity – that their crypto does indeed have utility based on how it was used. Blockchain and cryptocurrency use cases are often associated with longevity and value, which is why some argue that cryptocurrency has no use. These concerns likely have some influence on the market price of Dogecoin.
However, the community and active developers argue otherwise. Some of their requests for proof of utility are:
- It is used as money, based on a history of tipping and donating to charities and humanitarian initiatives.
- Many online retailers accept it as payment.
- It stores value.
- Development continues.
There do not appear to be any other uses for Dogecoin in December 2023 other than blockchain fees, which are very low compared to Bitcoin and Ethereum.
But to be honest, Bitcoin didn’t have much use to begin with either. It was a means of payment, just like Dogecoin. Bitcoin’s blockchain has been improved and layers built to give it more uses, but the same can be said for Dogecoin. So if Bitcoin has utility, it stands to reason that Dogecoin does too.
Dogecoin vs. Bitcoin
Dogecoin presented itself as a “fun” version of Bitcoin with a Shibu Inu dog as a logo. Dogecoin’s casual presentation suited the vibe of the burgeoning crypto community. Its Scrypt algorithm and unlimited supply were an argument for a faster, more adaptable, and more user-friendly version of Bitcoin.
Dogecoin is considered an “inflationary coin,” while cryptocurrencies like Bitcoin are. deflationary as there is a cap on the number of pieces that will be created. Every four years, the amount of Bitcoin put into circulation via mining rewards is halvedand its inflation rate is reduced by half until all coins are released.
Will Dogecoin reach $1?
It is difficult to predict what the markets will do. DOGE could reach $1, but it is just as possible that it could lose value.
What is Dogecoin used for?
You can spend your Dogecoin at any merchant that chooses to accept it. Many types of businesses accept DOGE, including Elon Musk’s SpaceX and the Dallas Mavericks. Many Dogecoin holders use their DOGE to tip content creators on Reddit and other social media platforms.
How high can DOGE realistically reach?
Future market prices are difficult for anyone to predict. It depends on market conditions, cryptocurrency developments, and investor and user sentiments.
The essentials
Dogecoin (DOGE) is a peer-to-peer, open source cryptocurrency created in 2013. Originally created as a cryptocurrency joke, the token has become quite popular among cryptocurrency fans. The humor of the community and developers included in the project adds to its appeal and is likely what has made it last longer than many other cryptocurrencies.