Quick Answer: Dogecoin is an alternative cryptocurrency created in 2013. It’s based on the doge internet meme and features a Shiba Inu as its mascot.
We all know about cryptocurrency at this point, right?
Bitcoin started the trend in 2009 and has increased in value from just 30 cents a decade ago to more than $40,000 at the time of this writing.
This incredible growth has prompted other companies to follow suit, and now there are many altcoins to invest in.
Take a look at any crypto stock site. You’ll see plenty to fritter your money on. At the time of writing, Tether is $1.
To explain Dogecoin, you need to delve into the internet’s history. You need to go all the way back to 2013.
You’ve probably seen the dogecoin meme – the one with the Shiba Inu surrounded by badly spelled, lolcat-style dialog. Very wow. Much doge.
Late in 2013, Dogecoin was created by a pair of software engineers, Billy Markus and Jackson Palmer. Initially created as a joke, the aim was to design a more recognizable peer-to-peer currency than Bitcoin.
And what better way to make something instantly identifiable than taking inspiration from a flash-in-the-pan meme?
Since its inception, it’s taken hold as a tipping mechanism for content creators, specifically the Doge Gif:
It was developed using the protocols of two other currencies, Luckycoin and Litecoin because they used scrypt technology.
Making Dogecoin meme-ories
Weirdly (or not so weirdly given its origins), Dogecoin seems to be at the center of trends in the last couple of years.
In June 2020, a TikTok trend was trying to help raise its price to $1.
Obviously, that’s nowhere near Bitcoin’s $40k, but it would raise the total value to $127 billion. Which is kind of a big deal.
Reddit users drove the value up by more than 800% when the Gamestop short squeeze drama was going on.
It’s also had a bit of promotion from everybody’s favorite rich genius, Elon Musk, along with Snoop Dogg and Gene Simmons.
Recently, Twitter desktop users reported a strange bug where the Twitter logo was replaced with a Shiba Inu dog, also known as ‘a Doge.’
Many theories are flying around, including speculation that it may be related to a $258 million lawsuit involving the $DOGE coin that Twitter’s owner, Elon Musk, is trying to get dismissed.
The case involves Musk’s promotion of the coin, which investors claim tanked after a 36,000% pump-and-dump. Musk’s lawyers have claimed that there is nothing unlawful about promoting a legitimate cryptocurrency like Dogecoin.
The crypto world has certainly taken notice, and as he loves to do, Elon Musk Tweeted about it. It turns out the Doge logo on Twitter was all thanks to an epic tweet exchange with the @WSBChairman account on March 26, 2022.
Because you can’t have a good story without a little scandal, it’s worth mentioning the Moolah scam. The short version is that Moolah was a cryptocurrency set up to make it easier for people to buy and sell Dogecoin.
It initially immersed itself in the community with charitable acts, including a $2500 donation to a cancer charity and $15,000 donation to a Dogecoin Nascar racer.
Eventually, the guy running Moolah, Alex Green, began to solicit investment. Want to know how much he received? More than $500,000.
Want to know what happened to Moolah? It filed for bankruptcy a few months after the third and final investment round. Every penny the Dogecoin community put into Moolah was lost.
Alex Green was also a fake name. The perpetrator was Ryan Kennedy, who had pulled this stunt multiple times.
He was also tried and convicted on three counts of rape. He sounds like an all-round class act, I think we can all agree.
How to buy and invest in Dogecoin
If you are interested in Dogecoin and want to get in on the action, here’s what to know.
There are a few online exchanges that offer Dogecoin. Personally, I’ve used Crypto.com, which is really easy to get to grips with.
Once you’ve registered and it’s set up, you can add funds and pick which currency you want to put your real-world money into.
You’ll need to pay a little attention to the app daily, but there’s plenty of potentials to make some money (not financial advice, mind you).
Other than that, your other option is to mine for it yourself. Or, in this case, dig. Because dogs dig.
If you’ve got a halfway decent PC, you’ll be able to start getting your own share of the pie.
However, as the currency begins to reach its limit, it becomes more difficult to get hold of.
Which, in theory, should drive the value up.
If you want to soley mine, you’ll provide the hashing power yourself. The benefit of this is that you’ll be the only person to reap the rewards.
This is also a riskier option, as solo mining is better for large-scale operations. You’re more likely to suffer a loss in this way.
As the currency has become more scarce (there is a limit to each altcoin), the hash rate has become incredibly bloated.
This means the juice probably isn’t worth the squeeze. You’re more likely to end up with the closely-related Litecoin with this approach.
Pooled mining is where lots of people combine their powers.
It’s almost as if the Power Rangers grew up, ditched the Megazord, and became a team of investment bankers. With attitude.
You’re more likely to get a return on your investment in this way, but the rewards are shared between the members mining.
Doing things this way also means you have more chance of beating the larger operations to the punch.
What you’ll need for mining
Still, if you’re getting serious about it, you’ll need a meaty GPU and some ASICs (application-specific integrated circuits).
When it comes to software, it’ll depend on what you’re using to mine in the first place. CPUminer by Pooler is ideal for, well, CPU mining.
Both of these support Scrypt mining pools, which is what you’ll need to get your digital paws on Dogecoin.
Should you invest in Dogecoin?
Dogecoin has never gone above 68 cents since its inception eight years ago. There are also concerns that it’s close to being mined out.
For comparison, Bitcoin won’t be fully mined out until 2041. This means a couple of things.
First, it’s getting harder to get hold of.
Second, it was initially created with 100 billion coins, so there’s a chance it’ll never become particularly successful.
On the other hand, just like any new currency, there’s the possibility that it could be the next big thing.