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What Is Dogecoin?

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If you are trying to find a currency that is user-friendly that has low transaction expenses then Dogecoin could be the right one for you. When you look at it quickly, you may think that it is a bit of a joke. The coin’s logo happens to be a Shiba Inu dog and it has also been taken from an internet meme. The coin was created after a rather flippant tweet was released. Jackson Palmer sent out a message saying that investing in Dogecoin is a good idea and that it is also the next big thing. This may seem laughable considering the origins of the coin but so far, it is achieving some degree of success. The hype around the launch happened to create a ton of loyal fans and this helped the currency to really take off. The Coin Market Cap is currently $300 million. So that brings about the question, what is Dogecoin?

In short, it’s a completely decentralised platform and this gives you the chance to trade the coin that you want and the exchange value. If you are looking for a cryptocurrency that is relatively cheap to buy then this is most certainly the answer. Sure, it’s launch might have been light-hearted but it’s safe to say that it experienced absolutely no controversy. This is shocking to say the least, especially when you compare it to some of the more established peers that are out there.

It was based on a currency known as LuckyCoin. This gave people random rewards if they mined a block. This then changed to static blocks. Even so, LuckyCoin is actually based on Litecoin. A lighter version of the coin includes Scrypt technology too. This is all to do with the POW algorithm. As a result, the Dogecoin can actually only be mined by computers. You cannot mine this by any other way and you also can’t mine it by using ASIC hardware either.

Dogecoin was originally intended to have a hard cap of over 100 billion tokens but it would appear that the cap was removed later on. Of course, when you look at other currencies you will soon find that it is an investment and that it is now being traded in the hopes of making a good level of profit. Most of the Dogecoin fans will say that the Altcoin is being used as a currency and the main reason for this is because it has very low transaction fees. The transaction fans are also very fast and the platform is super easy to use.

Dogecoin has become one of the most popular coins out there and it is being used to try and tip people over the internet. The community for the Dogecoin has raised funds for a ton of charitable causes. In the year 2014, you will see that they launched a fundraiser for over $50,000. This was done for the Jamaican Bobsled Team. They could not afford to go to the Winter Olympics in Sochi. They raised a ton of money to try and help them to build a well on the Tana river basin too.

Sure, Dogecoin is based on the Litecoin Scrypt but its block time is only a minute when compared to the time of Litecoin which is 2.5 minutes. This ultimately means that it is faster and that the transactions are much easier. The main difference between this coin and the other coins that are out there is the fact that it is inflationary.  Deflationary coins seem to have a hard cap and this can encourage people to hoard it with hopes that the value increases over time. When the hard cap is reached, it looks as though it is not profitable to keep on mining the coin.

Inflationary coins on the other hand ensure that mining can be continually maintained. All of the lost coins are then replaced. Of course, when you look at the fast transaction times and even the transaction fees you will soon see that this is what makes Dogecoin much more special. The users are vast and they are also very passionate about promoting the coin too.

So what you do if you want to buy some Dogecoin? Basically it is on over 50 exchanges that are all across the world. A lot of exchanges don’t really give you the chance to buy currency that is listed in pairing. You can store Dogecoin in the wallet that you have. You can also support the coin in a hardware wallet too. Sure, Dogecoin probably won’t ever reach the stage where it is as popular as Bitcoin, but that being said, that’s some of the appeal. It has a loyal fanbase and it is gaining a lot of support on Reddit too.

 

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