What is Dogecoin? A beginners guide to DOGE cryptocurrency
-
Loading... - Szabo Dominik
- 23 Sep 2022
- 72 Views
- 0 Like
- 0 Comment
Dogecoin (DOGE) is a cryptocurrency that came into existence in 2013, based on comedic inspiration rather than a particularly strong need to fulfill a use case. The cryptocurrency was inspired by the “Doge” meme, which shows a picture of a Shiba Inu — a Japanese dog breed — sitting, paws folded over each other. Text overlays the picture of the dog, with phrases touting nonsensical grammar.
Dogecoin got its inspiration from the humorous and eccentric culture of the overall cryptocurrency community, which first began to form in 2009 with the launch of Bitcoin (BTC). Following Bitcoin — a blockchain-based asset capable of moving and storing value — came thousands of other crypto assets, touting other benefits, such as added privacy.
Bitcoin’s code is open-source, which other projects have used to create separate crypto assets and blockchains. After Litecoin (LTC) and, subsequently, Luckycoin (LKY) were created based on Bitcoin’s code, software engineers Billy Markus and Jackson Palmer used the code of Luckycoin to form Dogecoin, taking only hours to complete the task.
Palmer and Markus departed from the Dogecoin project in the years after creating it. Markus sold his stack of Dogecoin in 2015, with his holdings, at the time, valued approximately the same as a pre-owned Honda Civic.
Dogecoin use cases
Dogecoin has had an interested community for years, but fanfare around the asset propelled its price to towering heights in 2021. The coin itself, however, does not especially hold many notable features that would suggest it might take over as the world’s dominant currency or store of value.
Why can’t Dogecoin become a mainstream currency? Dogecoin’s supply perhaps serves as the main reason. The coin comes with no limit on its maximum coin supply. On a daily basis, 14 million additional Dogecoin is mined, having an inflationary effect on the asset’s value. In contrast, Bitcoin, for example, comes with a fixed 21 million coin maximum supply, giving it defined scarcity. Read More...
