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Friday, April 19, 2024

All you need to know about Dogecoin

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Dogecoin is like any other cryptocurrency that occupies the cryptocurrency space. It is similar, but it has some differences from these well-established and standard forms of cryptocurrency. More info : https://www.btcrevolution.io/

Dogecoin originated as a silly little joke in the crypto world, named after a popular meme, and denoted by a funny little image of a dog. This cute coin, however, has turned into something very different in the modern day of crypto, making it a very different thing from what it had once been.

The initiation of Dogecoin

Dogecoin was started by Jackson Palmer and Billy Markus back in 2014, which used a funny image of a meme that was very popular in the space. Dogecoin was a piece of satire, created to make fun of the recently emerging Bitcoin, and similar cryptocurrencies. The idea was to not let these cryptocurrencies take themselves too seriously. With the emergence of WallStreetBets, a Reddit Community dedicated to investing, and also the community behind the infamous GameStop and Robinhood situation, Dogecoin evolved into something else. The community dedicated itself to making sure the coin went to the moon, and the goal was to raise the value of the coin as high as possible, simply for the joke of it all.

With Big names such as Elon Musk jumping onto the meme and raising its value and popularity, Dogecoin grew immensely through his influence and it became a very big cryptocurrency option. In 2021, Dogecoin had become one of the top 5 Cryptocurrencies in terms of value and market cap.

Of course, like any other joke and meme, Dogecoin has fallen out of favour and out of popularity. Now that the joke is over, its value has dropped drastically and it no longer holds any position. Should you wish to join in on the fun and delve into this world of crypto might be a great tool to access and utilize.

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How does it Work?

Dogecoin is a system that works on blockchain like any other cryptocurrency and has a ledger that is constantly updating with new information, transactions and sales taking information. The information is kept very secure but also kept within the public domain where it is visible to any who may want to read through and look through its history.

Dogecoin uses a very interesting system, which requires to solve some complex mathematical equations validate the transactions. This processing is then recorded. Miners get some additional Dogecoin, which can then be sold onto the market.

Dogecoin does not have a very stable store value, however, some locations might accept Dogecoin as a form of payment. Anyone can mine their Dogecoin and there is no limit to how much Dogecoin can exist, making the ecosystem difficult, as its value would eventually drop due to too much of the currency being present.

The system rewards miners, but for traders, it can be difficult to gauge the price of bitcoin on a regular enough basis as it does not follow the normal rules.

Dogecoin as an investment

Dogecoin is a coin that can be mined endlessly, and many coins enter the market daily, hence there is no real reason to hold onto Dogecoin, as its value can go down on regular basis. It is a meme coin that has no real value, and you can invest in crypto like BTC and ETH to get the best returns.  

The value of bitcoin rises since there is a limited amount of it that is present in the market and only a limited amount of the coin can be created, Dogecoin is not a good investment option and is rather created to be spent above all else.

NFT or non-fungible tokens are available in different forms and you can find these tokens online. For example, images, logos, photos and social media posts are also considered as NFTs. But, people do not consider these creative pieces for their investment portfolio and they need something real like assets and currencies.

Final Overview

Dogecoin has an interesting history within the crypto space, and it is important to remember that the coin itself was started as a joke and a piece of satire. It can be a tool for commentary in the crypto space and should be viewed as such.

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