Dogecoin is developed by Jackson Palmer and Billy Marcus – software engineers who wanted to create an instant payment system for cryptocurrencies that are free from banking fees. Dogecoin features the Shiba Inu dog as its logo, taken from the Doge meme. Dogecoin is a well-known cryptocurrency, enables peer-to-peer transactions over a decentralized network, and you should be careful about its volatility. This is one of the reasons why it captivates more investors. Does that mean Dogecoin does not have issues or problems? Let’s find out.
Interesting Facts About Dogecoin
Here are a few interesting facts about Dogecoin:
- Dogecoin was founded in 2013 as a joke; Jackson Palmer developed it, and Billy Markus, a programmer, decided to bring Dogecoin into existence.
- Dogecoin is designed to be a more approachable and friendly form of cryptocurrency. It is easy for the users to use it when compared with the complexities involved with Bitcoin. Its name has been derived from one of the popular internet doge memes.
- Dogecoin has the most active and most extensive network communities in the world. The Dogecoin network has come together to fund several charitable causes and projects; also, they have sponsored NASCAR.
- There was a major spike in Dogecoin’s price at the beginning of 2021; this boost was given by Elon Musk, Tesla CEO where he began tweeting about Dogecoin, remarking it as “the cryptocurrency of the people.”
- Initially, Dogecoin was used as a tipping service. People used these coins to tip other users for their contributions, posts, or amazing content that deserved recognition. Tipping is similar to a “Like,” but it does have more impact. Dogecoin is associated with an upvote that has real value that can be used over the internet.
- More than 100 billion Dogecoins are in circulation by 2015. Its value spiked upon several situations; it has more than $340 million as market cap currently. Hence it is one of the most popular and important cryptocurrencies that are available in the market.
How to get Dogecoin?
Dogecoin is just like other cryptocurrencies, and it is highly volatile. They are prone to large spikes and big dips, in particular, Dogecoin has experienced quite a turbulent history, and it is susceptible to abrupt price changes. There are several ways to purchase Dogecoin using fiat currencies like the US dollar, but you need to buy Dogecoins through an exchange. Several traders buy Dogecoin through Coinbase, the most popular crypto exchange. This includes buying cryptocurrencies using fiat currencies, and you need to store them in an e-wallet. Since Dogecoin is more popular, it can be purchased from crypto exchanges. First, you need to compare the options about the deposit method, and also, you need a fiat currency that supports the right fit for an exchange. Let’s find out the steps you need to get Dogecoin.
Here are the few steps to get Dogecoin:
- First, you need to select the pair and the amount needed for an exchange like Bitcoin(BTC) to Doge.
- Next, you need to click the “start exchange” button.
- You need to provide the recipient address to where the coins need to be transferred.
- Choose the cryptocurrency for the exchange.
- After the exchange, you will receive your coins in your wallet.
What are the problems associated with Dogecoin?
- When Dogecoin’s founder Jack Palmer left the project, the Dogecoin network community did not have much faith in Coin’s future. With the founder leaving, the future of the coin looked vague.
- In recent years, no new enhancements have been carried out for the development of Dogecoin. New developments are added every week; Tron and Ripple make partnerships and products every other week.
- Further, Dogecoin’s value is a bit shaky when there are times of inflation, and investors should be careful while investing in Dogecoin during market fluctuations.
The factors mentioned above make Dogecoin less secure, stable, and widely accepted.
Disadvantages of Dogecoin
- The unlimited amount of coins that are mined created a huge supply of coins into circulation, making it difficult to grow in value.
- The supply of Dogecoin is large, and it does not have much value individually; this is the main reason why mining of the coin is not profitable. Dogecoins can be used for tipping and carrying out small transactions.
- One of the major disadvantages is that Dogecoin is an inflationary coin. Moreover, inflation limits the potential of the coin. This is one of the major reasons why it is not profitable to mine these coins.
- There is a famous saying – “Dogecoin pumps and dumps”. the network buys these coins, pumps the price up, eventually, the price goes up and dumps it.
- Although few businesses accept Dogecoin as a payment form, it is not growing because no one is developing it or marketing it. We cannot expect Dogecoin to be accepted by everyone in the near future.
To summarise, Dogecoin’s network community is using these coins for tipping as well as for donations. With more businesses embracing Dogecoin, its future looks bright. As per Dogecoin price forecast, if more people are using the coin for tipping, its value can go up. The major point that separates Dogecoin from other cryptocurrencies is, Dogecoin is inflationary, instead of a deflationary cryptocurrency. If you want to invest in Dogecoin, you need to check the market fluctuations and volatility and proceed with caution.