Dogecoin - a cryptocurrency founded as a joke
Dogecoin is the first cryptocurrency that was created and named after an Internet meme. Meme Doge - a photo of the dog breed Shiba Inu and inscriptions in broken English, depicting the thought process of the animal. The meme gained popularity in 2013 and in the same year on December 8 Dogecoin was presented on the foundation of Litecoin.
The coin is not in the top ten neither by capitalization nor by daily trading volumes, but still trades on many exchanges and is one of the most popular. Let's take a closer look at the reasons for the popularity, as well as the various aspects of working with this crypto.
The history of Dogecoin
Dogecoin creator Billy Markus (Portland, USA) was guided by the wave of popularity of the Internet meme and used it to promote a new cryptocurrency. Dogecoin was created on the basis of the script Luckycoin, which in turn took the basis of Litecoin, and Litecoin is based on Bitcoin.
Dogecoin initially adopted from Luckycoin the dynamic (random) size of the miners' awards for each block, but in March 2014 the size of the award became fixed. Also, when the creation claimed that the emission of Dogecoin will be limited to 100 billion coins, but later this restriction was removed and now more than 111 billion Dogecoins have been extracted.
Mainly because of the lack of a limit on emissions, as well as because of the very fast period of initial mining (reward every 60 seconds), Dogecoin is not yet able to overcome the threshold of value even in one cent, although there have been sharp ups and downs. Not a long time ago we have already seen a surge in Dogecoin, but its value depreciated instantly.
Perhaps it was a surprise that a cryptocurrency, founded as a joke, managed to gain such popularity online. It should be noted that one of the biggest surprises is the fact that it firmly established itself in the field of the online casino industry. Right now a lot of people gamble with Dogecoin and the reason most probably is its high speed and lower transaction costs compared to other cryptos.
Benefits of Dogecoin
What are the advantages of Dogecoin, on which the worldwide popularity of this crypto is based?
- The fast transfer rate and incredibly low commission. For example, if you send quite large sums from your online wallet and the commission is always 1 Dogecoin, no matter how large the amount of transaction. Taking into account the fact that 1 dog is almost worthless, it turns out that it is possible to make a money transfer to any country almost free of charge and anonymously.
- The coin is completely anonymous, decentralized, and safe.
- The coin does not have problems with scaling, which managed to become famous for Bitcoin.
- A large number of crypto-exchanges and various services using Dogecoin.
- Many users-lovers of freebies, especially younger age, registered wallets, as Dogecoin is very popular with the creators of various faucets - sites that distribute visitors a little amount of crypto to attract users.
January 2021 and Dogecoin's rise
The cost of the comic cryptocurrency Dogecoin has more than doubled in a matter of hours by the tweet of an adult film star on Twitter.
Cryptocurrency Dogecoin updated the maximum at the auction on January 2, testing the mark of $0.14. In less than 24 hours, the value of the coin increased by 125%, and the market capitalization exceeded $1.5 billion, moving it to 20th place in the rating of cryptocurrencies according to Coinmarketcap.
Dogecoin often becomes the object of the tweets. It's worth some celebrity to mention DOGE on Twitter - not necessarily in a positive way - as fans of the coin-meme rush to buy it in large quantities, throwing the price to new heights.
Pumping price is a common occurrence in a cryptocurrency environment. During the pump, the rate is growing rapidly, and interest in the coin is actively heated in social networks. This phenomenon is generally manipulative
However, the pump is also often called an unexpectedly sharp rise in the rate against the background of positive comments, forecasts, or news. This is the kind of pump that most often happens to Dogecoin. Earlier, Elon Musk's tweets threw Dogecoin to new heights.
Results, reviews, and perspectives
Many believed that cryptocurrency, created in a joke by meme, would not be able to gain enough popularity and certainly would be forgotten as soon as the meme loses its relevance. But now many years have passed, and there are only more services and exchanges that accept Dogecoin.
In our opinion, the key to this crypto's success is due to very low transaction fees. Withdrawal of Dogecoins from almost all sites that give to earn free - themselves pay a commission of 1 Dogecoin. While when you withdraw from the same services of Bitcoin, commissions reach 35,000 satoshis.
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