In 2013, Jackson Palmer and Billy Markus, two crypto enthusiasts, collaborated to introduce a cryptocurrency with its native blockchain. They also wanted the crypto to be friendlier and used for transactions, trading, and support the community. To convey their message more clearly, they decided to use the popular Internet meme “Doge” (the Japanese dog breed Shibu Inu) as its logo. Such is the origin story of Dogecoin. Since then, Dogecoin has been part of various charitable donations and micro-tipping to reward the contents on social media platforms like Reddit.
It is a proof-of-work altcoin and derivative of the project LuckyCoin that uses the Scrypt algorithm from another altcoin, Litecoin. The decentralized digital currency is based on the peer-to-peer transaction model and can be mined and stored in a digital wallet like other cryptos. Today, Dogecoin has a total supply of 127 billion with 113 billion coins in circulation and 5 billion new coins coming into circulation every year. Dogecoin is also the 10th largest cryptocurrency with a market capitalization of over 8.722 billion.
If you are astonished by the concept of Dogecoin and cannot resist the urge to mining, this guide is definitely for you then.
Why mine Dogecoin?
Since cryptocurrency works without intermediaries, it needs people to validate the asset exchange and reward them with new coins in return. Mining is the process of confirming transactions taking place over the blockchain network.
Dogecoin miners can earn 10,000 DOGE as a mining reward for confirming every transaction. But given the price of Dogecoin as per dogecoin price prediction, which is less than a cent, because of no cap on supply, and heavy computer power and electricity that go into this, one might wonder why mine Dogecoin.
To find out the answer, you need to think beyond the common mining belief of earning some passive income. Dogecoin is a new cryptocurrency compared to Bitcoin and Ethereum, so it has a higher chance of gaining value in coming years, as did its predecessors. Again, you will learn a lot about how the cryptoverse works by being a part of the community passionate about cryptos. But the most beautiful thing about Dogecoin is its fun-filled and friendly community that leaves no stone unturned when it comes to contributing to a cause or making a difference to society.
It is worth mentioning that the traditional method of cryptocurrency mining using graphics processing unit (GPU)-powered computers went useless with the advent of application-specific integrated circuits (ASICs) and industrial-grade mining facilities providing cloud mining service. GPUs were infamous for using more computing power, consuming more energy, and providing a limited supply of hash power. With ASICs, miners can mine Dogecoin without worrying about any of these things.
While it is true that mining Dogecoin will not be as profitable as Bitcoin or other cryptocurrencies because of the cost involved, you can still make a meager profit by using different mining techniques.
What do you really need to start mining Dogecoin?
Before you begin Dogecoin mining, know the three approaches to do this – solo, pool, and cloud. Solo mining is where miners provide hash power on their own to confirm transactions, keep all the rewards but pay no fees. Miners share their computing power in pool mining to process transactions, distribute the reward among them but pay fees. In practice, pool mining is preferred to solo mining for increasing the odds of earning rewards. We will talk about cloud mining in the following section.
The two main components of Dogecoin mining are the hardware and software. The basic requirements are a personal computer operating on Windows, Mac OS, or Linux systems and a high-speed stable Internet connection. You will also need a digital wallet to store the DOGE earned as a reward.
- Central Processing Unit (CPU)
- GPU – SAPPHIRE Pulse Radeon RX 580, ASUS RX Vega 64, and Nvidia GeForce GTX
- Scrypt ASIC – Innosilicon A2 Terminator, BW L21 Scrypt Miner, and Bitmain Antminer L3
- CPU Mining – CPUminer
- GPU Mining – CudaMiner, EasyMiner, SGMiner, and CGminer
- Scrypt ASIC Mining – CGminer, MultiMIner, and EasyMiner
- Digital Wallets – Coinbase, Trezor Model T, Ledger Nano S, and Dogecoin Core
Best Dogecoin Cloud Mining
Cloud mining has recently picked up the trend for eliminating the need for miners to spend on expensive mining hardware or software. All miners need a wallet to store Dogecoins. Instead, many large data centers provide the hardware on rent. Thus, the mining of Dogecoins takes place at the data center, but it takes a share from the reward and charges the electricity fees. It is a simple, cheaper, and popular method of mining. Also, it provides a steady source of earning Dogecoins. Below is a list of the best Dogecoin cloud mining services (in no particular order):
Dogecoin serves all the primary functions of a default cryptocurrency while being innovative in its mining approach, community service, and coin supply. While the infinite supply allows Dogecoin to inflate, it is impossible to overlook the success it has experienced in the last seven years. Now that you know either side of mining Dogecoin, it is up to you to make a choice.