Dogecoin is one of the most popular cryptocurrencies out there and has attracted billions of dollars in investment over the course of years. In this Dogecoin review, you will learn more about the origin, use cases, and other fundamentals of this popular cryptocurrency.
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What is Dogecoin (DOGE)?
Dogecoin, also known as DOGE, is a first-generation cryptocurrency that allows users to transfer funds globally in a secure manner.
The name Dogecoin comes from the famous Shiba Inu meme that the currency uses as its symbol. It makes the project look more casual and is one of the main reasons behind its popularity.
People can send and receive funds directly without needing a third party to assist the transaction.
In the recent past, Dogecoin has got a lot of attention from the media and has risen in popularity. More mainstream investors are now interested in investing in Dogecoin because of its growing reputation as a reliable cryptocurrency.
DOGE has yielded some serious profits for investors lately as it has attracted billions of dollars in investment.
What Problems Are Being Solved by Dogecoin (DOGE)?
Dogecoin is a first-generation cryptocurrency, so it does not offer anything that is unique or exciting. There are projects out there that are now offering features like smart contracts, and that can make Dogecoin look ordinary.
However, the main goal of this crypto was to create a secure network for peer-to-peer transactions, and it managed to achieve that successfully.
Dogecoin has faced some serious challenges and roadblocks in the past, but it is still considered a highly secure network.
Dogecoin is changing the crypto space because it does not take itself too seriously. The idea behind the token was to add something fun and entertaining into the crypto space.
The main goal behind this project was not to shift the world’s economic structure but to have a simple transaction network that will lighten up the crypto community.
How Does Dogecoin (DOGE) Work?
When it comes to technology discussions, Dogecoin does not offer anything unique. Dogecoin is basically a slightly altered copy of the Bitcoin blockchain that was developed in less than 4 hours.
One of the co-founders of the project mentioned that they basically copied all the Bitcoin’s code and replaced the term Bitcoin with Dogecoin in the data, alongside a few more alterations.
He also changed the term for validating transactions from mining to digging and changed the block production time from ten minutes to one minute.
Dogecoin Consensus Mechanism
Just like Bitcoin, Dogecoin also uses a proof-of-work consensus mechanism where transactions are validated through mining (or digging in DOGE’s case).
However, this consensus mechanism is not exactly identical to Bitcoin’s SHA-256 model. It uses a scrypt technology that allows Dogecoin to only be mined through dedicated ASIC and FPGA devices.
This was done so people do not have to use high-powered mining rigs to validate transactions.
Can You Mine Dogecoin?
Dogecoin is a minable cryptocurrency and uses miners as nodes to validate new transactions. Mining Dogecoin is much easier because it does not require too much power or time. There were no pre-mined tokens when Dogecoin was introduced, which also makes the mining process convenient.
Total DOGE Tokens
Unlike Bitcoin, Dogecoin does not have a hard cap. This means that the number of Dogecoin that can be mined is not finite. It started with a cap of 100 billion tokens, but all of them were mined in 2015. Since then, 5 billion coins are added to Dogecoin’s reserves every year.
History of Dogecoin (DOGE)
Dogecoin was first introduced in December 2013 by two developer friends Billy Markus and Jackson Palmer.
Both the developers had plenty of experience in the programming field as Markus was a software engineer at IBM and Palmer worked at Adobe as a computer programmer.
The coin was initially created as a joke and only attracted attention from certain communities on Reddit. The developers decided to go live with the coin on 3rd December 2013 and saw astonishing results straight away.
More than a million people visited the website on day one, and the value of Dogecoin rose by 3x.
However, this success was short-lived, and the coin dropped more than 80% within three days.
Things got even worse within a few days as the company’s native wallet got hacked, which resulted in the loss of 1 million Doge tokens.
The Dogecoin Community
What makes Dogecoin so impressive is its community. The project had a really poor start and would have been buried if it was not for its community.
The community, along with the developers, started a donation campaign to save Dogecoin and recover the funds stolen by the hacker.
The campaign was labeled “SaveDogemas” and it did manage to cover the project’s losses and put it on a recovery path.
After that, the community also started charity projects for multiple causes, including getting clean water in Kenya and assistance-dogs training for autistic children.
Another big breakthrough came when Dogecoin was finally listed on an exchange called Moolah. It added to the network’s liquidity and gave more credibility to the project.
After this listing, Dogecoin started to get more attention and reached its new all-time high in 2017. It again had a few ups and downs later, but it was nothing out of the ordinary for the crypto market.
Dogecoin again managed to create some new all-time highs as it got a lot of media coverage in 2021.
Elon Musk Support
Elon Musk is the CEO and founder of Space X and also the current CEO of Tesla, inc. He is arguably one of the most influential personalities in the world and has been a vocal supporter of blockchain technologies.
In 2021, the crypto space saw a lot of support for Dogecoin from Elon Musk as the billionaire turned to Twitter to show his interest in this cryptocurrency.
Elon Musk has tweeted about DOGE several times in the past and has played a significant role in its recent price surges.
How to Buy Dogecoin?
Buying Dogecoin might have been a little complicated in the past, but nowadays, it is easier than ever. You can now buy Dogecoin on any of the below-mentioned centralized cryptocurrency exchanges.
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Depending on the exchange you choose, you can pay for your Dogecoin via the following methods:
- Debit/Credit Card
- Bank Transfer
- Peer-to-peer exchange
Dogecoin (DOGE) Price Predictions for 2025
There is no doubt that Dogecoin has offered some serious returns in the past, but that does not guarantee that its price will only go high in the future.
However, the crypto markets, in general, are still quite new and yet have not experienced proper mass adoption.
According to Digitalcoinprice, the price predictions for DOGE for 2025 are as follow:
Conclusion: Should You Buy Dogecoin?
Dogecoin is a project that is famous for a number of reasons, but when you look at its fundamentals, it is not the best option out there.
The crypto space is quite unpredictable, and no one can accurately predict any coin’s future prices.
Dogecoin can certainly climb higher in the long term and create new all-time highs but is also a highly volatile project and can prove a risky investment.