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Cryptocurrency for Beginners

What is DOGECOIN? And why is Elon Musk so interested in it

2 min read
Bitcoin has a limited supply of 21 million whereas Dogecoin has an unlimited supply

What is DOGECOIN?

Dogecoin is cryptocurrency that has a picture of a Shiba Inu on its logo.

Doge is slang for ‘dog’.

code: DOGE, symbol: Ð and D

If you go to Coinmarket cap, you will notice that most cryptos and tokens have forgettable logos, except Doge.

 

What is Dogecoin?

Dogecoin has a similar algorithm to Litecoin but what makes it special is that it is the first cryptocurrency to have a picture of a dog as mascot and it has unlimited supply.

The founders, Jackson Palmer and Billy Markus described dogecoin (in several interviews) as a a joke which got out of hand.

Dogecoin became attractive to newer crypto adopters because it was marketed as a friendy cryptocurrency which wll take over the world.

In 2021, Elon Musk posted a couple of memes about Dogecoin which resulted in Doge’s prices skyrocketing a reaching a market cap of $10Billion

 

How is Doge different from Bitcoin?

  • UNLIMITED SUPPLY – Bitcoin has a limited supply of 21 million whereas Dogecoin has an unlimited supply
  • FASTER – Doge is a fork of Feathercoin which is why its faster.
dogecoin info
Max Supply: Infinite (Source : Coinmarketcap)

Why is Elon Musk interested in Dogecoin

No, one really knows why exactly Musk tweets about dogecoin.

The main difference is that unlike Bitcoin, Dogecoin does not have a supply limit

Dogecoin is a fork of Feathercoin which is also a Litecoin Fork.

 

Here are a couple of theories:

Testing stablecoins

The reason cryptocurrencies are considered high risk is because they are highly volatile.

Stablecoins like the USDT solve this issue as they are backed by the US dollar.

According to official reports, Tesla had started investing in Bitcoin in early 2021, so they would need a hedge when Bitcoin peaked.

Stablecoins would be the next logical move.

 

Price Manipulation

Some conspiracy theories say that Musk used dogecoin as a distraction to take attention away from Bitcoin so Tesla could buy Bitcoin at a discount price.

 

To test his influence

He has 50 million followers and his tweets resulted in

To test a currency for his space project

Shitposting out of boredom

Many crypto investors complain that Bitcoin is too volatile and not scalable, there is no denying that

Honestly, no one really knows

How to get started with Dogecoin?

STEP 1: Get a dogecoin wallet

The first thing you need is a dogecoin wallet or a wallet that supports Dogecoin.

You can download a free Dogewallet or dogecoin wallet here:

Official Dogecoin Wallet For Desktop : Windows, OS or Linux

http://dogecoin.com/getting-started/#desktop-wallet

Offical Dogecoin Wallet For Android (Dogecoin Phone Wallet)

http://dogecoin.com/getting-started/#phone-wallet

Step 2: Buy Dogecoin on a cryptocurrency exchange

Most cryptocurrency exchanges support Dogecoin.

Beginner friendly exchanges include Binance, Coinmama and CEX.io

 

History: How Dogecoin started

Jackson Palmer, an engineer at Adobe System in Sydney, Australia, tweeted that he we was going to invest in ‘Dogecoin’ to his 100,000 twitter followers as a joke.

He came up with the name Dogecoin by taking the name of the doge meme, which was named as “Know your Meme” 2013 meme of the year and adding the word ‘coin’ because of all the new cryptocurrencies which were popping up at the time.

He did not think much of it at that time but word spread and Billy Markus from Portland Oregon reached out to him. Billy was already working on a similar project and offered Jackson Palmer to make the Dogecoin project a reality.

Dogecoin gained more adoption when Josh Mohland created the (now discontinued) Dogetipbot, a tipping system on for reddit users.

Jackson Palmer says that the Doge meme has also made cryptocurrencies more approachable to a broader audience such as women and children.

In February 2014, Jackson Palmer announced  in Github, that Dogecoin would have an unlimited supply

In April 215, Jackson Palmer that he would be taking an ‘extended leave of absence’ from the Dogecoin community.

However, he returned to the cryptocurrency world in 2018 with an education youtube channel.

 

The Dogecoin Charities

The Dogecoin community has hosted many fundraising events through its non-profit organization The Dogecoin Foundation.

The first fundraising event which drew attention was to help the Jamaican Bobsled Team go to the Sochi Winter Olympics

Other noteworthy causes are

Doges4kids  Which helps provide dogs for children in need

Experiment.com – West Virginia Water Contamination Relief and Study

University of South Alabama study on Virginia chemical spill – study and help recovering from this disaster.

Doge4Kashmir
Help flood victims in the Kashmir, India region

 

Ghana Medical Help
We supply Northern Ghana hospitals with urgently needed basic medical equipment. Accepting Dogecoin and Bitcoin

 

NASCAR

In March 2014 reddit users noticed that race car drive Josh_Wise was racing an unsponsored car. Within a week, the dogecoin community had raised $55,0000 or around 67 million Dogecoins.

Several weeks later Wise drove the Dogecar.

 

What is a dogecoin faucet? (Doge Watters Bowls)

A dogecoin faucet is a website that collects dogecoins from other users, then those coins to other users. Dogecoin faucets  provide free dogecoins to beginners while introducing them to the dogecoin cryptocurrency.

 

Conclusion: Can Dogecoin hit $1

As mentioned above , Dogecoin’s biggest “flaw” is that has unlimited supply.

The problem with unlimited supply cryptocurrencies (stable coins) is that they are designed to be cheap and withstand volatility.

For Doge to skyrocket, it will need huge investments consistently.

 

 

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