Dogecoin (DOGE) is a peer-to-peer, open-source cryptocurrency. It is regarded as a meme coin and an alternative cryptocurrency. Dogecoin was introduced in December 2013 and uses a Shiba Inu dog as its logo. Even though Dogecoin's blockchain seems to be designed as a joke, it nevertheless retains value. It uses Litecoin-derived technology as its foundation. Dogecoin, which employs the scrypt algorithm, is notable for its low cost and limitless supply.

Although Dogecoin was first intended to be a joke, it soon acquired popularity. By the end of 2017, it was taking part in the cryptocurrency bubble, which considerably increased the value of several currencies. Dogecoin's value declined significantly when the bubble broke in 2018, but it still maintains a core of fans who trade it and use it as tips for content on Twitter and Reddit.

History

In order to mock the hype around cryptocurrencies, Jackson Palmer, a product manager at Adobe Inc., developed Dogecoin in 2013. Palmer, who has been referred to be a "skeptic-analytic" watcher of developing technologies, initially tweeted in joke about his new cryptocurrency business. But after reading favorable comments on social media, he decided to purchase the domain name dogecoin.com.

Billy Markus, an IBM software developer in Portland, Oregon, learned about the Dogecoin buzz while trying to promote his attempts to design a digital currency. Palmer was contacted by Markus to request permission to create the code for a real Dogecoin. Markus originally utilized a randomized payout for block mining and based Dogecoin's code on Luckycoin, which is descended from Litecoin.

Important

With a Shibu Inu (Japanese dog) as its logo, Dogecoin promoted itself as a "fun" variant of Bitcoin. The informal presentation of Dogecoin matched the mindset of the developing crypto community. Its scrypt technology and limitless supply served as justification for a speedier, more flexible, and user-friendly Bitcoin version.

Because there is a cap on the total number of coins that may be issued, cryptocurrencies like Bitcoin are deflationary, but Dogecoin is an inflationary coin. The number of Bitcoins released into circulation as mining rewards is half every four years, and until all coins are issued, so is the inflation rate.

Risks

2015 saw a decline in the levity of Dogecoin as the cryptocurrency industry as a whole began to take itself more seriously. The resignation of Jackson Palmer, who claimed that a toxic culture had developed around the coin and the money it was generating, was the first indication that all was not well in the Dogecoin community.

Alex Green, also known as Ryan Kennedy, a British national who founded the Dogecoin exchange Moolah, was a part of that poisonous environment. His alias, Alex Green, was well-known in the neighborhood as an extravagant tipper who reportedly mistakenly paid 15,000 USD to the NASCAR event rather than the intended 1,500 USD.

Green's exchange persuaded members of the community to provide significant sums to support the establishment of his exchange, but it eventually came to light that he had used the donations to purchase more than 1.5 million USD worth of Bitcoin, which in turn allowed him to live a luxurious lifestyle.