Cryptocurrencies are now a huge part of the financial world, with more people diversifying their portfolios to include crypto. Although Bitcoin has taken the crypto center stage, other coins like Dogecoin have equally attracted thousands of people into crypto.
In this article, we look at this quirky meme coin and tell you everything you need to know about Dogecoin.
What is Dogecoin?
Dogecoin is a cryptocurrency created by Billy Markus and Jackie Palmer as a joke in 2013. But what started on a light-hearted note quickly became one of the most famous cryptocurrencies ever. Dogecoin is also regarded in many circles as the father of memecoins, as its popularity and huge ROI in 2021 indirectly birthed thousands of memecoins.
But what is Dogecoin used for? At first, it was used to send in donations. In 2014, two Jamaicans were finally able to participate in the 2014 Sochi Winter Olympics because people raised about $25,000 in Dogecoin for them. Recently, Ukrainian supporters used the popular meme coin to send donations to the embattled country. Dogecoin has evolved from being just a tipping or donation coin. Like regular cryptocurrency, you can also use Dogecoin to:
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Pay for things online and offline
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Make a profit through trading
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Exchange it for other coins
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Use to send money from place to place
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Place sports bets
You have to confirm whether your intended platform accepts Dogecoin to use it for any of these services. If it does, go ahead!
But how was this versatile meme coin created? What is the story behind Dogecoin? Time to get into the details of Dogecoin’s creation.
How Was Dogecoin Created?
In 2013 when cryptocurrency was just starting out, two software engineers thought the space was too serious and decided to lighten it up a bit. So, they decided to create Dogecoin. Markus and Palmer got to work, with Palmer developing a website for their ‘make-believe’ coin. In contrast, Markus worked at the back end, developing the coin’s technicalities, forking it initially from Litecoin.
Both engineers were inspired by the picture of a Japanese female Shiba Inu they came across and decided to make it the mascot for their newly developed coin. With the basics in place, they launched Dogecoin on December 6, 2013. The new coin became famous as a means of tipping on Reddit and blew up 8 years later into the meme coin we know today.
What Makes Dogecoin Unique?
Dogecoin is no doubt popular among crypto natives and noobs, and this popularity makes it a very popular choice for beginners. Here are three things that make DOGE unique:
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A fun community:
Dogecoin began on a light note, so it is no surprise it attracts people who like to take life a bit less seriously. The propagation of DOGE memes all over the internet indicates the Dogecoin community likes to have fun.
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Celebrity Endorsements:
Few projects can boast about the publicity Dogecoin has racked up, especially from Hollywood. Celebrities like Snoop Dog, Mia Khalifa, Mark Cuban, Kevin Jonas, and Gene Simmons have at one time or the other shown their support for the Shiba- themed crypto.
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Charity:
Many people are moved by charity, which is also one of the ways Dogecoin became popular in the first place. The Dogecoin community has been involved in multiple charitable endeavors and fundraising campaigns. Dogecoin also shows that crypto can improve the world if used correctly.
How to Buy Dogecoin
Many investors believe Dogecoin will still grow much more than its current price. And that's why searches like ‘Where is dogecoin traded’ are popular. Doge is one cryptocurrency available on numerous centralized exchanges like Binance, Kraken, and Coinbase.
Many decentralized exchanges like Uniswap allow you to swap a range of other cryptos for Dogecoin. No matter what method you choose to use, remember to include a little extra for gas and platform fees.
Does Dogecoin Have a Max Supply?
No, Dogecoin does not have a maximum supply, although this wasn't always the case. The starting supply of Dogecoin was initially 100 billion tokens, which many cryptocurrencies did not have then. But as time passed, DOGE founders decided it would be better as a coin with unlimited supply. In 2015, they began to add 5 million DOGE tokens into the circulating supply annually.
While this move ensures that Dogecoin remains accessible to all and continues to have low transaction fees, a factor that initially made it a favorite, the yearly addition might dilute the coin's value over time by gradually reducing its market cap, even with higher prices.
Conclusion
Dogecoin started as a joke but is now one of the most popular cryptos, allowing users to make payments, tip each other, and shop from stories. With an unlimited supply and low transaction fees to enhance accessibility, Dogecoin seems like a crypto that will stick around for a long time.
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FAQs About DOGE
Can I Buy Dogecoin Now?
You can buy Dogecoin now, depending on your target. Buying it now would be a great idea if you intend to hold it for the long term. If not, please research when to enter and exit shorter trades.
How Much was DOGE When it Started?
Dogecoin launched at $0.0002. Within days, it grew more than 1000% and became relatively stable till it fell to a low of $0.0000869 two years later in 2015. This was the lowest the coin had seen, and it was not until 2021 that it started to give returns, about 12,000% in that year alone!
Is Elon Musk Involved with Dogecoin?
Many people believe that Elon Musk must be one of Dogecoin's creators since he is so enthusiastic about it. In 2021, he announced that Dogecoin would literally ‘go to the moon’ via a DOGE-1 Mission rocket. Still, in 2021, he made a series of tweets on Dogecoin, indirectly making the coin shoot up 30%. But Elon Musk has denied being directly involved with DOGE. He has tried to distance himself from Dogecoin-related allegations against him, especially as he is battling an insider trading lawsuit filed by Dogecoin investors.
This article is for education purposes only and is not intended to be financial advice.
