20.06.2022
Dogecoin — what is it?
The development of this cryptocoin was the most common experiment and was created exclusively by amateurs for amateurs. It all started with an Internet meme that depicts a Japanese Shiba Inu dog. The world famous joke became the idea for the development of a new cryptocurrency in 2013 — Dogecoin.
The coin was created by two programmers-developers: Australian Jackson Palmer and American Billy Markus. The first one came up with an interesting idea — to create a positive crypto image in the digital world for people who were previously not interested in cryptocurrencies at all. Since the team did not have enough mathematical and technical aspects at that time, the Litecoin development scheme was taken as a basis. It can be argued that the cryptocurrency is based on the Litecoin protocol, and is located on the Bitcoin blockchain and is considered one of the forks of these platforms.
Dogecoin Foundation
Initially, for the development of this cryptocoin, a unique organization «Dogecoin Foundation» was created, which was engaged in various types of charity and financing, including such projects:
- financial support of NASCAR driver John Wise;
- funding for the Jamaican sports team that competed in the Winter Olympics in 2014;
- improving the lives of citizens and the general state of the environment in Kenya by creating and designing wells;
- humanitarian aid to Kashmir after a natural flood.
The community of Doge users is considered one of the friendliest in the cryptosystem. It has earned a positive reputation thanks to its charitable activities, which are aimed at social work, solving environmental problems and making changes to the Internet infrastructure.
The developer community also came up with the idea of using Dogecoin for Facebook, by integrating into this popular social network. For example, crypto coins can be used to pay for the creation of content by specialists.
The Dogecoin team carries out systematic updates of the core code, connects the most relevant smart contracts, and also tries to solve the problem of fixing the dogecoin exchange rate and the rate of issue of cryptocoins.
Thanks to the work on unlimited coin generation, a rapid rise in the price level can be avoided and dogecoin price will be relatively stable. Also, most of the work of programmers is aimed at simplifying the mining of dogecoin and the complexity of its encryption.
Advantages and Disadvantages of Dogecoin
The meme cryptocurrency created by an American programmer is very popular among users due to some of its advantages:
- A friendly community that has about 300,000 users on the Reddit platform.
- For the convenience of users and the wide distribution of the coin, the Dogecoin system provides high-speed transactions with cheap commissions.
- Absolute transparency of the coin, which is confirmed by its impeccably clean reputation. Since its release, Dogecoin has not been seen to be involved in fraudulent activities.
- The developers of the company removed restrictions on the distribution of coins from the moment they were issued. If initially 100 billion doge coins were available, now tokens are issued in unlimited quantities.
The disadvantage of this coin is that many media underestimate dogecoin precisely because of its humorous origin. Such sites focus the reader's attention not on the innovations and technologies of a given coin, but solely on the humorous aspect.
How to buy Dogecoin?
In order to make a purchase, you need to decide where to buy dogecoin. Today, the user is provided with a huge selection of places where this can be done reliably and without much effort. It can be both cryptocurrency exchanges and exchangers. You can buy dogecoin and find out the dogecoin exchange rate to the dollar on such popular exchanges:
- Bittrex;
- Gate.io;
- Poloniex;
- Hitbtc.
To store your coins, you will need cold, hardware or online cryptocurrency wallets, in addition, you also have access to the official wallet on the Dogecoin website.
Dogecoin and Elon Musk
The inventor, businessman and founder of Tesla and SpaceX, Elon Musk, published a post on his Twitter in which he made it clear to his subscribers that he is also one of those people who are fond of cryptocurrencies, since he has a couple of bitcoins, ethereum and dogecoins in his arsenal. In Musk's post, it was written that from now on, people will be able to purchase Tesla shares for cryptocurrency, namely Dogecoin. After such a statement on a social network, huge popularity fell on the crypto-coin, and the price jumped by almost 20%. After that, he also called Doge a «coin for the people», which also helped to raise the capitalization of the coin up.
In 2022, the dogecoin rate increased by another 12% after another statement by Elon Musk. This time, he suggested that the world-famous fast food chain McDonald's could introduce an innovation into its company by allowing visitors to pay for food with Doge coins. Musk also noted that those who want to own cryptocurrency should have not only dollars, since inflation is too high, but also shares of companies or real estate.
Dogecoin forecast and development prospects
Having overcome three crypto booms, Dogecoin managed to maintain its price, as well as remain in the top of cryptocurrencies on the digital market of exchanges and exchangers. Today, it is one of the oldest coins that is absolutely not famous for hostility, suspicious schemes and uncontrolled forks. Despite the fact that the project does not have a lot of funding, it has a dedicated community, high liquidity, and by removing the limits in the release — mining profits. A transaction fee of 1 Dogecoin is quite acceptable for many users, further enhancing the credibility of the coin.
The Dogecoin Foundation community has many prospects for the further development of the project, one of which is the integration of the project into smart contracts. Thus, it will be possible to use the Doge coin not only as money, but also to form new ecosystems on the digital market.
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