What is Dogecoin
Dogecoin is a cryptocurrency featuring a likeness of the Shiba Inu dog from the “Doge” Internet meme as its logo. Introduced as a “joke currency” on 6 December 2013, Dogecoin quickly developed its own online community and reached a capitalization of US$60 million in January 2014.
Compared with other cryptocurrencies, Dogecoin had a fast initial coin production schedule: 100 billion coins were in circulation by mid-2015, with an additional 5.256 billion coins every year thereafter. As of 30 June 2015, the 100 billionth Dogecoin had been mined. While there are few mainstream commercial applications, the currency has gained traction as an Internet tipping system, in which social media users grant Dogecoin tips to other users for providing interesting or noteworthy content. Dogecoin is referred to as an altcoin.
Overview and History
Dogecoin was created by programmer Billy Markus from Portland, Oregon, who hoped to create a fun cryptocurrency that could reach a broader demographic than Bitcoin. In addition, he wanted to distance it from the controversial history of other coins. At the same time, Jackson Palmer, a member of Adobe Systems’ marketing department in Sydney, was encouraged on Twitter by a student at Front Range Community College to make the idea a reality.
After receiving several mentions on Twitter, Palmer purchased the domain dogecoin.com and added a splash screen, which featured the coin’s logo and scattered Comic Sans text. Markus saw the site linked in an IRC chat room, and started efforts to create the currency after reaching out to Palmer. Markus based Dogecoin on an existing cryptocurrency, Luckycoin, which features a randomized reward that is received for mining a block, although this behavior was later changed to a static block reward in March 2014. In turn, Luckycoin is based on Litecoin, which also uses scrypt technology in its proof-of-work algorithm. The use of scrypt means that miners cannot use SHA-256 bitcoin mining equipment, and that dedicated FPGA and ASIC devices used for mining are complicated to create. Dogecoin was officially launched on December 6, 2013. The Dogecoin network was originally intended to produce 100 billion Dogecoins, but later, it was announced that the Dogecoin network would produce infinite Dogecoins.
On December 19, 2013, Dogecoin jumped nearly 300 percent in value in 72 hours, rising from US$0.00026 to $0.00095, with a volume of billions of Dogecoins per day. This growth occurred during a time when Bitcoin and many other cryptocurrencies were reeling from China’s decision to forbid Chinese banks from investing into the Bitcoin economy. Three days later, Dogecoin experienced its first major crash by dropping by 80% due to this event and due to large mining pools seizing opportunity in exploiting the very little computing power required at the time to mine Dogecoin.
On December 25, 2013, the first major theft of Dogecoin occurred when millions of coins were stolen during a hack on the online cryptocurrency wallet platform Dogewallet. The hacker gained access to the platform’s filesystem and modified its send/receive page to send any and all coins to a static address. This hacking incident spiked tweets about Dogecoin, making it the most mentioned altcoin on Twitter at the time, although it was in reference to a negative event. To help those who lost funds on Dogewallet after its breach, the Dogecoin community started an initiative named “SaveDogemas” to help donate coins to those who had them stolen. Approximately one month later, enough money was donated to cover all of the coins that were stolen. On January 2014, the trading volume of Dogecoin briefly surpassed that of Bitcoin and all other crypto-currencies combined, however, its market capitalization remained substantially behind that of Bitcoin. As of 25 January 2015, Dogecoin had a market capitalization of USD 13.5 million. April 2015 Jackson Palmer announced he is taking an “extended leave of absence” from the cryptocurrency community.
In January 2018, Dogecoin reached $2 billion market cap.
Use and Exchanges
Several online exchanges offer DOGE/BTC and DOGE/LTC trading. Three exchanges, Mengmengbi, Bter and BTC38, offer DOGE/CNY trading. On January 8, 2014, AltQuick.co was the first exchange to launch DOGE/USD exchange. On January 30, 2014, Canada-based exchange Vault of Satoshi also announced DOGE/USD and DOGE/CAD trading. On February 2014, Hong Kong-based exchange Asia Nexgen announced that they would support the trading of Dogecoins in all major currencies. China-based exchange BTC38 also added their support on the Dogecoin exchange, boosting the market capitalization over 24 hours. In the first day of trading, Dogecoin was the second-most traded currency on the platform, after Bitcoin. On September 2014, UK-based exchange Yacuna began offering DOGE/EUR and DOGE/GBP trading.
On January 31, 2014, trading volume across the major exchanges was valued at $1.05 million USD. The market cap was USD$60 million. Three exchanges accounted for the majority of volume: Bter (60%), Cryptsy (23%), and Vircurex (10%). The most traded currency pairs were DOGE/BTC (50%), DOGE/CNY (44%) and DOGE/LTC (6%).
Trading physical, tangible items in exchange for DOGE takes place on online communities such as Reddit and Twitter, where users frequently share currency-related information. On December 23, 2013, Tristan Winters of the online journal Bitcoin Magazine discussed what was needed for Dogecoin if it ever wanted to have the success Bitcoin has had or to possibly replace Bitcoin.
The first Dogecoin ATM was demoed at Coinfest in Vancouver in February 2014. Two Bitcoin ATMs supporting Dogecoins and other altcoins opened in Tijuana, Mexico on March 17, 2014.
Dogecoin has also been used to try to sell a house, and has been used in the pornography and poker industries.
Get a DOGE Wallet
Your wallet is the software you use to send, receive and store DOGE.
Please secure your wallets by protecting them with strong passwords. Also, backup your wallets frequently and keep several copies in different places to minimize the chance of loss. If you use a wallet that generates a “seed” (a long series of random words) such as a Trezor or the Electrum wallet, be sure to write down this seed and store multiple copies in a safe place. That seed allows you to restore your entire wallet in the event of loss. For help creating strong passwords, visit keepassxc.org
What types of DOGE Wallets are there?
- DOGE Desktop Wallets are available with different features and security.
- DOGE Mobile Wallets are available with different features and security, run from your Mobile (Phone, Tablet,..) device
- Hardware wallets are Security Devices that protect your Wallet from hackers and thieves. Hardware Wallets work with the wallet software on your computer by taking over the management of private key generation, private key storage, and transaction signing.
- DOGE Paper wallets are a form of cold wallet and essentially a bearer instrument.
- DOGE Web wallets.
Decided what you want to use ? go get your first DOGE Wallet here.
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