What Is Dogecoin (DOGE)? How It Works & Where To Buy It?

Dogecoin (DOGE) is one of the most influential open-source cryptocurrencies to date. It initially started as a joke but later gathered an enormous following – it’s currently the 12th largest cryptocurrency in the world.

Additionally, Dogecoin rose to fame because of its unique Shiba Inu dog logo and playful approach, which differed from other cryptocurrencies.

In recent years the project has received media attention from Tesla CEO Elon Musk, who has been dubbed ”The Dogefather“. After a series of tweets made by Musk, the price of Dogecoin (DOGE) rocketed to all-time highs.

How Dogecoin (DOGE) Works

Dogecoin, like other digital assets, can be used to trade value over the internet. Dogecoin is almost an exact copy of Litecoin’s code.

In 2013, Billy Markus reached out to Jackson Palmer amidst the social media buzz surrounding Dogecoin – IBM software engineer. Markus sought to build the software behind Dogecoin.

Billy Markus crafted Dogecoin around the code of Lucky Coin, and the block mining reward was originally a randomized reward (later, this was changed).

After two weeks, the cryptocurrency was released and rose more than 300%. The utility behind the coin was unclear, but faithful Doge fans quickly developed several utilities for the cryptocurrency.

What Is Dogecoin (DOGE) Used For?

Dogecoin has a rich history and a very loyal fanbase. For many years it was unclear what the utility of the cryptocurrency was.

It was launched by Jackson Palmer, an Australian product manager for Adobe, in 2013 as a way to ridicule the hype surrounding cryptocurrencies. Palmer created dogecoin and never imagined it would rise to fame as it has.

Initially, Palmer was quite a profound skeptic of cryptocurrencies, but as Dogecoin garnered retail investors’ attention, he decided to purchase the Dogecoin.com domain.

Dogecoin is currently accepted by several stores as payment and has classically been used for social media tipping currency.

It is actively traded by its loyal community, and the digital asset continues to gain popularity.

Where To Buy Dogecoin (DOGE)?

Dogecoin (DOGE) has quickly grown to become one of the major cryptocurrencies. Dogecoin (DOGE) is currently the 12th largest cryptocurrency in the world by market cap.

DOGE can be purchased on several centralized crypto exchanges. But, before you can purchase DOGE, you’ll need to deposit funds on the crypto exchange and sequentially purchase the DOGE tokens by placing an order.

The crypto exchanges below are the safest place where you can buy, sell and store the DOGE cryptocurrency.

Five of the most popular crypto exchanges are:

1. Binance
2. Coinbase
3. KuCoin
4. HTX
5. Gate.io

All of the above exchanges allow users to buy, sell, transfer and store Dogecoin (DOGE) in a digital wallet on the exchange. You can use your debit or credit card to purchase DOGE.

If you intend on transferring your DOGE tokens to a wallet off of the exchange – you can choose to send them to a wallet such as Multidoge, Dogecoin Core, or Ledger Nano X.

How long has DOGE existed?

Dogecoin was started in 2013 by Jackson Palmer. IBM software engineer Billy Markus later built the software behind Dogecoin.

The cryptocurrency has become notorious in the crypto space since its launch, even gaining the attention of Elon Musk, who accepted Dogecoin payments for the SpaceX “DOGE-1 Mission To The Moon”.

What’s controversial about Dogecoin (DOGE)?

Dogecoin is a meme coin that has undercome a substantial amount of criticism over the years. It is a cryptocurrency that doesn’t have an actual use case but has a loyal community. Let’s take a look at 3 of the top controversies surrounding Dogecoin (DOGE)

1. Market Manipulation – The crypto space is known for pump and dump schemes where a select group few make tons of cash on the backs of unknowing retail investors. Essentially, these individuals aim to create a huge amount of hype that attracts people to believe that the cryptocurrency will ‘pump‘ (price will increase drastically.)

   The individuals don’t necessarily have to say that the price will pump; it simply requires influential people to tweet a series of praises or mentions of the project. This has been the case with Elon Musk, who has made a series of tweets that have rocked the market – he has often been accused of manipulating the market.

2. It’s An Inflationary Token – Unlike other cryptocurrencies with a finite supply of tokens – Bitcoin has a total fixed supply of 21 million tokens. Dogecoin is an inflationary token, which means no cap on the total supply. This is a major concern amongst most potential investors because it means that the tokens won’t be as scarce as other cryptocurrencies.
3. It Has No Real-world Utility – The cryptocurrency was formed as a joke, which later grew into one of the biggest cryptocurrencies in the world. Although it has gained significant attention and a $20 billion market cap – there is no actual use for Dogecoin besides being traded as a digital asset. Developers stopped working on the code years ago, and the cryptocurrency is entirely reliant on hype.

How many DOGE tokens are there?

At the time of writing, DOGE has a circulating supply of 132.67 billion DOGE.

The total supply of DOGE is not available.

Can DOGE be mined?

Yes, DOGE can be mined. Dogecoin uses a proof-of-work consensus algorithm which means dogecoin miners can typically make between $1 to $2 a day if they have high-end mining rigs.

However, there has been a surge in individuals trying to mine Dogecoin, which has resulted in increased mining difficulty.

Merge mining Dogecoin is also very popular and means that miners can use their hash power to mine both Dogecoin and Litecoin simultaneously. It should be noted that crypto trading Dogecoin is likely more profitable than merge mining Dogecoin – it also doesn’t require a capital-intensive mining rig.

What is the market cap of Dogecoin (DOGE)?

The market cap of Dogecoin (DOGE) is:

Dogecoin (DOGE) market cap = total amount of coins in circulation x current market price of DOGE

Dogecoin (DOGE) Market Cap = 132,670,764,300 x $0.1519 = $20.15 billion (12th largest cryptocurrency in the world)

The market cap fluctuates according to circulating supply and market price.

 

Biggest Competitors Of Dogecoin (DOGE)

When considering what competitors Dogecoin has, it is best to remember that the cryptocurrency primes itself as a fun internet currency or a meme coin.

The success of Dogecoin hasn’t fueled the desire of its founders to implement real-world utility – it remains a fun project that managed to capture the attention of millions.

There have been multiple meme coins that have launched since seeing the success of Dogecoin. Most notably, in 2020, the Shiba Inu cryptocurrency made headlines as it sky-rocketed in value over the course of a few weeks.

Like Dogecoin, it also had no real-world utility, but its developers have vowed that Shiba Inu is not a meme coin but rather a cryptocurrency that can be used to help change the world.

At the current time of writing, Shiba Inuis the 15th largest cryptocurrency globally, with a market cap of $14.68 billion.

What are the future plans for Dogecoin?

The Dogecoin community aims to grow the use cases for Dogecoin. Currently, you can see on this site that more than 400 stores accept Dogecoin as payment.

The future of Dogecoin is in the hands of the community, and after having built up a market cap of more than $20 billion, anything is possible.

The more people buy dogecoin on cryptocurrency exchanges, the more exposure and growth the project sees.

Pros and Cons of Dogecoin Blockchain, Dogecoin Community, and how Dogecoin Operates

Pros

• One Of The Largest Digital Currencies In The World – Dogecoin has amassed an enormous market cap of over $20 billion to become the 12th largest cryptocurrency globally.
• Huge Community – The Dogecoin community is a die-hard community that has continued to grow over recent years. They ensure that the project is surrounded by hype and keeps growing as best as possible.
• It’s Grown Exponentially As An Investment – The price of Dogecoin has seen extreme volatility – if you invested $1,000 around the start of 2021, you would have been a return of $85,000 at its highest price.
• Cheap Transaction Fees – Dogecoin transaction fees are minimal. Its transaction fees are lower than Stellar, Litecoin, and other popular cryptocurrencies.

Cons

• Doesn’t Have a Supply Cap – Quite possibly, the biggest con of Dogecoin is that it lacks a capped supply. Unlike other cryptocurrencies with a fixed total supply – Dogecoin is devoid of a fixed cap. This means that Dogecoin won’t be able to achieve value through scarcity.
• Dogecoin Lacks Technical Support – There have been no updates to Dogecoin since 2015 – this is worrisome, especially regarding the rate of developments in the crypto space. It is unlikely that Dogecoin could keep up with other projects. It may be among the most popular choices in cryptocurrency trading but might not be the most profitable choice for your crypto wallet if the developers aren’t trying to improve the project.

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