Cryptocurrency got off to a great start this new year. Bitcoin and Ethereum have both set new all-time high price records. The top players in cryptocurrencies have always held the spotlight, but we cannot say that they have overshadowed other altcoins.
Just like the top dawgs in crypto, other altcoins too are seeing high gains. Some have had massive bull runs over the last few months. One such altcoin may not have been the biggest contender in decentralized finance, but is certainly one that has won the hearts of many crypto users — Dogecoin.
Launched in December 2013, the Dogecoin token was placed as a fun and simple option to broach cryptocurrency. The creators set off to bring more people into crypto, to show them that it was a good, easy-to-use investment.
What is Dogecoin?
Let’s meet Dogecoin — The Meme, The Myth, The Legend. One of the coolest things to have come from the internet is the gift of memes. It is millennial humor at its finest. Doge is one of the most popular memes out there. It is an image of Japan’s Shiba Inu.
The meme consists of an image of the Shiba Inu surrounded by colored text making silly, wholesome comments. This Doge meme is the same Shiba Inu that graces the face of Dogecoin (DOGE).
Famously, the meme is where the coin gets its name from. Initially, the coin was created as a joke to ridicule Bitcoin when it first launched. But, eventually, Dogecoin received a lot of attention and ultimately stepped onto the pedestal as an actually credible cryptocurrency.
How did Dogecoin come to be?
In December 2013, an Adobe product manager named Jackson Palmer created Dogecoin. He did so with the intention of making a sarcastic joke. He was surprised at the amount of attention his coin got. Amid the hype, he bought the domain for dogecoin.com.
At the same time, a software developer named Billy Markus came across the viral sensation. He was intrigued by the traction Dogecoin was gaining and immediately got in touch with Palmer. The two then decided to begin creating the actual software for Dogecoin.
On December 6th, 2013, Dogecoin was officially launched. A couple of weeks after, China made the decision to ban crypto trades. This led traders to invest in Dogecoin instead of Bitcoin as they saw this as a safer option. As a result, Dogecoin saw a massive increase in price value, it went up by 300% in just 72 hours.
Jackson Palmer stepped away from the crypto game in 2015. He decided to take an extended leave, claiming that the crypto field is too toxic. After this, DOGE stayed afloat thanks to its loyal users. The community consists of light-hearted members who believe in the original principles of DOGE.
Dogecoin officially debuted as a good, fun, easy to understand coin made for anyone — unlike the too technical, harsh, and boring aura that surrounded Bitcoin. And so, Dogecoin’s community grew larger and support for the coin increased. The coin, in turn, supported a lot of charities. We’ll get to that soon after we understand how Dogecoin works.
How does it work?
Dogecoin is a peer-to-peer open-source cryptocurrency. It is referred to as an internet currency for it is mainly used for tipping. If someone appreciates a piece of content on the internet, they can send the original creator rewards. Dogecoins would be gifted as rewards to anything that amused its holders. Even a funny comment could result in earning DOGE as a thoughtful tip.
Litecoin emerged from a fork in Bitcoin’s blockchain. Likewise, the Dogecoin blockchain came from a fork in Luckycoin’s blockchain; which came from a fork in Litecoin. Hence, Dogecoin uses the Proof-of-Work algorithm to process its transaction.
Yet, its transactions are much faster than Bitcoin thanks to Litecoin’s scrypt method for mining. Miners on Dogecoin’s blockchain cannot use SHA-256 mining equipment like Bitcoin. Instead, they use dedicated ASIC and FPGA devices.
Currently, Dogecoin holds a total market cap of $1,317,313,178. Dogecoin is not a finite coin like Bitcoin and Bitcoin Cash. It is an inflationary coin, making it versatile and paints an inviting picture to new buyers and miners. Dogecoin’s greatest price value to date was in January 2018 at $0.01758.
What can Dogecoin do?
Dogecoin can do most things that other Altcoins can do. For instance, Dogecoins can buy products and pay for services. They can also be bought and stored in crypto wallets. Mined Dogecoins can be traded for other cryptocurrencies on certain crypto exchanges.
Some Dogecoin holders purchase large amounts of Dogecoin and then sell it on the exchange after the coin sees a significant bull run. It’s a neat and convenient way to make a small profit. The community also tends to donate much of its profits to charities. While Bitcoin was created with a big vision, Dogecoin has a softer one at heart.
Dogecoin was meant to be used by the average joe. Hence, one of its biggest uses is as an internet currency for tipping. Seeing funny Reddit comments receive Dogecoins for their humor truly showcases the spirit of Dogecoin’s philosophy. Writers and artists on the internet are tipped with Dogecoins for their impressive work.
What has Dogecoin achieved?
At the height of its success, Dogecoin donated millions of coins to humanitarian projects and relief funds on a global range. The coin gained a sort of ‘Celebrity’ status. The Dogecoin community-funded quite a few significant charity donations.
The community set up the Dogecoin Foundation to give its members a platform to corroborate ideas. They aimed to promote the coin by providing help anywhere in the world when needed. They believe that Dogecoin will channel goodwill overtly to further establish their status as a friendly coin for all people.
Their first act of charity came during the 2014 Winter Olympics. On January 19th, Dogecoin set up a fundraising campaign. The community collectively raised $50,000 for Jamaica’s Bobsled team. The team had qualified for the Sochi Winter Olympics but sadly couldn’t afford the trip. Fortunately for them, Dogecoin stepped in.
Jamaica’s athletes weren’t the only ones who received Dogecoin’s help at the Sochi Winter Olympics. Indian athlete Shiva Keshavan was also in a similar predicament. The Dogecoin community pooled in coins to raise a total of $6,000 to help get him to Sochi.
Dogecoin’s next notable wonder project was Doge4Water. After the success of the Winter Olympics donations, Dogecoin Foundation began raising funds to build wells in Kenya in honor of World Water Day.
More specifically, it worked with a non-profit organization called Charity: Water, to provide drinking water in the Tana river basin. The project was a huge success, donations came through from over 4,000 donors. The project amassed a total of 40,000,000 Dogecoins. At the time, that amounted up to $30,000.
Another notable donation from Dogecoin happened on March 25th, 2014 with NASCAR. The community raised a whopping total of 67.8 million Dogecoins to sponsor NASCAR driver Josh Wise. That was a total of $55,000. This donation, funded his racecar, the #98 Moonrocket.
The #98 Moonrocket debuted on May 4th, 2014 at the Aarons 499 Sprint Series Cup Race. The race car sported the name and symbol of Dogecoin on its side and back respectively. This was a huge moment for Dogecoin as the race anchors discussed Dogecoin’s charity efforts while #98 Moonrocket graced the big screen.
Josh Wise went on to win a spot at the Sprint All-Star Race via an online fan vote. This was all thanks to the support of the Dogecoin community. Wise continued to use the race car at a couple more races to show his gratitude to Dogecoin GEICO 500.
Dogecoin’s NASCAR charity endeavor received a lot of attention. So much so that the developer of the NASCAR’14 video game, Eutechynx went on to add the Dogecoin car to its DLC package. Gamers could cruise the virtual streets in the #98 Moonrocket as a drivable race car.
Dogecoin’s valiant efforts to spread good vibes have placed DOGE in our minds as man’s best friend. Even though there haven’t been more big projects from the Dogecoin Foundation, the community still very much exists. Loyal Dogecoin miners are still keeping the coin afloat. DOGE still sees bull runs on occasion, these highs are usually caused by some new trend or influencer promoting the coin.
Dogecoin and Elon Musk
One such prominent influencer is the Founder of SpaceX and CEO of Tesla — Elon Musk. The man who recently became richer than Jeff Bezos himself. Since Dogecoin’s arrival, Elon Musk has let his fondness for the coin slip through on many occasions.
A single visit to Musk’s Twitter page will prove that his love for memes is no big secret. He often shares memes on all his tweets including ones about cryptocurrencies like Bitcoin, Ethereum, and Dogecoin.
In April 2019, the Dogecoin community decided to pick a new CEO to lead them. They did so through a poll on Twitter. Elon Musk swept the poll, upon which he replied saying — Dogecoin may just be his favorite cryptocurrency. He openly shows his approval of Dogecoin on many more tweets on his account.
Every time Elon Musk tweeted anything about Dogecoin, its value soared. Most recently, in December 2020, DOGE rose by nearly 40%. This was because Musk said Bitcoin was as worthless as fiat money. He drew light to DOGE instead and even changed his Twitter title to say ‘former CEO of Dogecoin’.
It’s nearly impossible to talk about Dogecoin and not mention Elon Musk. The tech lord often expresses his affection for DOGE and its simplistic values. He even makes memes calling the currency cool, and posting the Shiba Inu meme saying ‘Dogecoin rulz’ with related captions like ‘dogs rock’.
Above all, he believes in the moral code of Dogecoin much like its community. On July 18th, 2020 amid the Twitter Hacks and Bitcoin scams, he tweeted that Dogecoin is inevitable.
Dogecoin and TikTok
In mid-2020, Dogecoin received a lot of attention and a pump in value thanks to a viral video on the social media app — TikTok. One user urged all TikTok users to invest in DOGE. He reasoned that if TikTok’s 800 million users all bought some tokens then the stocks would rise eventually.
The TikTok post got over 800,000 views in a week. The video nudged viewers to invest $25 in the coin, especially while its value was still very low. It said that all these investors would hold 10 grand when the coin hit $1 in value.
Dogecoin of course took to Twitter to call attention to the video. It advised all traders to heed caution. The tweet told viewers to be mindful and to make informed decisions. It stressed not riding along on someone else’s choices.
However, thanks to the viral video DOGE’s price value soared up by 35% and grew over 2000% in volume in just two days. Overall, the tweet recommended traders study the market and take guidance from trading specialists. And above all, never jump on a bandwagon without prior knowledge of the way things run in the market.
What does Dogecoin’s future look like?
For something that started as a joke, Dogecoin has certainly come a long way. It’s a coin on a mission that goes beyond creating epic memes. It tethers a strong and gallant community and once established itself as the charity boss of cryptocurrencies. And for all its worth, Dogecoin still ranks in the top 50 cryptocurrencies out there.
Just like every cryptocurrency out there, Dogecoin still has an interesting future ahead. Cryptocurrencies are still at their starting line, there’s no telling how far they can go. Compared to coins like Bitcoin and Ethereum, Dogecoin is more a coin for average citizens than it is for the business types. If Bitcoin is gold, Dogecoin would be copper.
Some experts still believe DOGE will hit $1 someday. For new traders hoping to enter the field but are low on funds, Dogecoin is a good option. Besides, Dogecoin has very loyal fans, basically a cult following, who won’t ever give up on the coin.
Furthermore, meme culture is very strong, do not underestimate its power. Millennials and Gen Z almost raided Area 51, a highly guarded military base, just for the sake of memes! DOGE was born from that sense of community and it’s probably going to stick around for a long time.