Cryptocurrency Dogecoin (DOGE): What It Is, History, and Uses

Cryptocurrency Dogecoin (DOGE): What It Is, History, and Uses

What Is Dogecoin (DOGE)?
Dogecoin (DOGE) is a peer-to-peer, open-source cryptocurrency. It is considered an altcoin and was launched in December 2013 with the image of a Shiba Inu dog as its logo. Dogecoin’s blockchain has merit with its underlying technology derived from Litecoin. Notable features of Dogecoin—which uses the Scrypt algorithm (pronounced ess-crypt)—are its low price and unlimited supply.
Key Takeaways
– Dogecoin is an open-source cryptocurrency established in 2013 by Jackson Palmer and Billy Markus.
– Dogecoin features a Shiba Inu, a Japanese dog breed, as its logo.
– It is based on Litecoin and uses the same proof-of-work technology.
– Dogecoin has a loyal community of supporters who trade it and use it as a tipping currency for social media content.
History of Dogecoin
Jackson Palmer, a product manager at the Sydney, Australia, office of Adobe Inc., created Dogecoin with Billy Markus, a software developer at IBM. The intent behind the cryptocurrency was to be a way to satirize the hype surrounding cryptocurrencies.
Palmer and Markus launched the coin on Dec. 6, 2013. By Dec. 19, the value of Dogecoin jumped 300%, bolstered by China’s policy to forbid its banks from investing in cryptocurrency. Markus and Palmer based Dogecoin’s code on Luckycoin, derived from Litecoin (a Bitcoin fork). Initially, they used a randomized block mining reward, but that was changed to a static reward in March 2014. Dogecoin uses Litecoin’s
Scrypt technology and uses proof-of-work (PoW) on its blockchain.
In the summer of 2019, Dogecoin enthusiasts celebrated when the crypto exchange
Binance listed the coin. As of December 2023, Dogecoin’s market capitalization was nearly $13.1 billion. Dogecoin’s infrastructure is slowly gaining traction with fans and developers and continues to operate and trade due to its active community of miners.
Dogecoin surpassed a $1 billion market capitalization for the first time in the crypto bull run of 2017 to 2018.
Concerns About Dogecoin
Dogecoin, with beginnings as a memecoin and no blockchain utility other than existing, has an established following who argue—with a fair amount of validity—that their crypto does indeed have utility based on how it has been used. Blockchain and cryptocurrency use cases are often associated with longevity and value, so there are those who claim that the cryptocurrency has no utility. These concerns likely have some influence on Dogecoin’s market price.
However, the community and active developers argue otherwise. Some of their claims for proof of utility are:
– It is used as money, based on a history of tipping and donations for charities and humanitarian initiatives.
– Many online retailers accept it as payment.
– It stores value.
– Development continues.
There doesn’t appear to be any other Dogecoin uses as of (December 2023) besides blockchain fees, which are very low compared to Bitcoin’s and Ethereum’s.
But to be fair, Bitcoin didn’t have much utility initially, either. It was a payment method, just like Dogecoin. Bitcoin’s blockchain has been improved, and layers have been built that give it more uses, but the same can be said of Dogecoin. So, if Bitcoin has utility, it stands to reason that Dogecoin also does.
Dogecoin vs. Bitcoin
Dogecoin marketed itself as a “fun” version of
Bitcoin with a Shibu Inu dog as its logo. Dogecoin’s casual presentation suited the mood of the burgeoning crypto community. Its Scrypt algorithm and unlimited supply were an argument for a faster, more adaptable, and more consumer-friendly version of Bitcoin.
Dogecoin is considered an “inflationary coin,” while cryptocurrencies like Bitcoin are
deflationary because there’s a ceiling on the number of coins that will be created. Every four years, the amount of Bitcoin released into circulation via mining rewards is halved, and its inflation rate is halved along with it until all coins are released.
Where Is Dogecoin Traded?
You can
purchase Dogecoin (DOGE) by establishing an account with one of many cryptocurrency exchanges including Coinbase, Binance, and Kraken. Robinhood, a traditional brokerage that enables crypto trades, also supports Dogecoin.
What Is Dogecoin Used for?
You can spend your Dogecoin with any merchant that chooses to accept it. Many different types of businesses accept DOGE including Elon Musk’s SpaceX and the Dallas Mavericks. Many Dogecoin holders use their DOGE to tip content creators on Reddit and other social media platforms.
What Will Dogecoin Be Worth In 2025?
The future market prices are difficult for anyone to predict. It depends on market conditions, cryptocurrency developments, and investor and user sentiments.
The Bottom Line
Dogecoin (DOGE) is a peer-to-peer,
open-source cryptocurrency established in 2013. Originally created as somewhat of a joke about cryptocurrency, the token became fairly popular with cryptocurrency fans. The community and developer humor included in the project adds to its appeal and is probably what has made it last longer than many other cryptocurrencies.

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