Dogecoin with its native token DOGE is a distributed platform designed to ease the entry threshold for working with virtual currencies. The project was developed out of a joke made by its software developers — the title and identity of the token rest on the famous meme about a Great Dane giant breed.
What is Dogecoin?
Dogecoin was originally launched in 2013 by the American investor Billу Markus and the Australian developer Jасkson Palmer as the hard fork of Litecoin. As a result, the “Doge image” became a distinctive characteristic of this digital coin, but also the reason to consider it a bit frivolous and childish. The founders wanted the DOGE coin to be an entertaining and fun altcoin that would have greater approval beyond the Bitcoin society. DOGE was originally used on Twitter or Reddit to tip those people who distributed high-quality content. Over time, Dogecoin has proven to be an anonymous, decentralized, and secure payment solution for purchases, transfers, and other financial operations. What is more, Dogecoin is probably the first altcoin introduced in the crypto market almost seven years ago. The developers wanted to create a currency that will become popular among ordinary users because of its affordability and transparency. Despite its close connection to LTC and Bitcoin, this altcoin has some important differences. For example, its average block generation time is 2.5 times faster than that of LTC. Thanks to this fact, transactions are confirmed more quickly — in just 6 minutes.
Dogecoin is the pioneer of the crypto sector. In recent years it was in decline because of the need for an effective mechanism that would connect the “meme coin” and Ethereum ecosystem, but the platform has a lot of prospects for growth. It strives to build a reliable platform for business payments and operations, which will ultimately result in more growth.
How is Dogecoin different from other cryptocurrencies?
After the successful Dogecoin creation 7 years ago and the unprecedented interest from traders and investors, its founders decided to prove that DOGE is way more than just a “joke token”. Particularly, the Dogecoin project aimed to develop a simple, affordable, and practical virtual token. Dogecoin’s characteristics are consistent with this statement:
- DOGE is relatively cheap. Even a novice investor with limited capital can invest in DOGE.
- The initial DOGE emission was 100 000 000 tokens, but it was later decided to make the emission unlimited. Now the number of coins has already exceeded 120 billion.
- DOGE has practical applications. Some investors utilize tokens to make personal payments and pay for goods and services on the Internet.
How to obtain Dogecoin?
How to Mine Dogecoin
When it comes to cryptocurrency mining, it all starts with understanding the main technical characteristics of the coin:
- block generation time: around 1 minute;
- block reward: 10,000 DOGE;
- evaluation of mining complexity occurs once every 240 blocks (after about 4 hours).
Thanks to the aforementioned technical characteristics, the token is less exposed to hacking attacks and scammers. Dogecoin is based on the Scrypt algorithm, which allows miners to mine coins using special ASIC equipment. Due to the constant increase of the network complexity, it became unprofitable to mine the DOGE token with the CPU and GPU equipment. For the same reason, individual cryptocurrency mining also becomes unprofitable. Therefore, many miners decide to join mining pools, which are also backed by the Scrypt algorithm.
To start mining, you do not need to join a mining farm, buy the latest ASIC equipment or order expensive graphic cards. The complexity of DOGE mining is low, and the founders do not plan to increase it. Moreover, the moon Dogecoin founders have introduced a mechanism of artificial inflation, which is 5% of the annual emission. It means that every year, about five billion new coins available for mining appear in the system. Due to the low cost of the cryptocurrency, DOGE mining has never been popular among miners. Because of the unlimited mining and excessive emission, the price of the “meme coin” is growing very slowly.
Collect Dogecoin on different sites
In order to develop an open and easily accessible digital token, the developers decided to distribute them for free through different sites. However, the sites on which the distribution is performed are overflowed with ads. To get free DOGE coins, you need to find the site and earn coins by entering captchas, clicking on banners, or performing other activities. As a rule, earned funds can be withdrawn once a week. The method is extremely simple, but it is not very profitable. On average, for an hour of continuous mouse-clicking, it is possible to earn around 300 DOGE (60 cents at the current exchange rate).
Popular DOGE distribution sites: Moondoge, Freedog, Doge-moonfaucet, 777Doge, Dogefaucet, Doge-cryptority, and others.
Purchase Dogecoin on crypto platforms
You can always purchase DOGE tokens on crypto platforms and brokerage services. How to buy Dogecoin? Dogecoin is presented on top exchanges (Bittrex, Poloniex, HitBTC, etc.), as well as decentralized non-KYC exchanges, such as Godex.io. Dogecoin can be stored in different cryptocurrency wallets, such as Exodus, Cryptonator, Holy Transaction, and many others. But it is much safer to keep Dogecoin in its official crypto wallet that can be found on Dogecoin website.
How much is Dogecoin worth?
In December 2013, DOGE entered the crypto market with an initial cost of $0.0006. For a whole year, Dogecoin was in an upward trend and soon multiplied its indicators. Unfortunately, 2014 wаs unsuccessful for Dоgecoin. Investors and ordinary users turned their heads towards new and more advanced altcoins. Consequently, its price dropped to $0.0002. A year later, Jаkson Pаlmer also decided to leave the company arguing that Dogecoin was probably moving towards turmoil and scam. Dogecoin creator Jackson Palmer has received quite a lot of unfriendly criticism on Twitter for his recent comments regarding the DOGE cryptocurrency. To counter this reaction, he has now created a script that blocks DOGE followers from commenting on him on Twitter. After his negative remarks about DOGE, he was attacked by a huge army of the coin followers, and so he decided to create a script called DOGE Gone. The extension was originally created to combat Ethereum bots after Elon Musk asked for a tool to counter the messages he received from ill-wishers.
The “meme” fans began rumoring аbout thе ultimate decline of the “funny currency”, but thіs wаsn’t the cаse. Many experts argue that the initial DOGE growth was associated with a steady upward trend at the beginning of 2013. Thus, there was a natural pullback, which grew into a bearish trend.
DOGE market cap is $240 million, which makes Dogecoin 40th on the CoinMarketCap site. By the way, in 2019 it was placed 30 lines lower, from which we can conclude the “unusual coin” is constantly progressing. But what will happen to Dоgecoin then?
Dogеcoin pricе prеdiction
Even though Dogecoin has come a hard way from a questionable newcomer to a rather well-known online coin, serious investors still avoid it in 2020. They are confused by the meager Dogecoin value, the unrestrained emission of the DOGE currency, and, as a necessary consequence, that the founders originally introduced the “meme currency” as a joke. Nevertheless, there is a belief that Dogecoin is one of the few altcoins that have a real practical value. Despite the prevailing opinion that the value of a cryptocurrency is determined by its volatility, the ideological meaning lies in the possibilities of its application. Simply put, it is more important how many people use DOGE in everyday life.
Some experts suggest that DOGE has a real chance to grow in price to up to 8 cents in the near future. Dogecoin has also significantly climbed in the market cap rating, which means that more money has been invested in it compared to other altcoins. If altcoin can maintain its current pace, it has all chances of returning to its price maximum of $ 0.02 by the end of 2021.
This online currency was worth $ 0.0003 in 2019, and by the end of this year, it is worth $ 0.002. That is, investors who bought DOGE in 2019 received almost 600% of net profit today. Consequently, it is not worth excluding Dogecoin from the investors' portfolio. Despite the general bearish trend and the low value of the coin, DOGE maintains its position and demonstrates great perspectives to earn profit.
Zakaria M, a well-known Steemit blogger and cryptocurrency trader, assumes that Dogecoin will be traded at $1 level in a few years from now. The Dogecoin price has all chances to rise to $0.0186 in December 2020. Next year, DOGE could hang around the $0.03 level with the highest price reaching $ 0.0284 point and the low of $0.0214.
As reported by the CryptoGround, DOGE is expected to reach $0.0041 in December 2020, and in five years — $0.0129;
The Wallet Investor platform provides price analyses for almost every cryptocurrency in the market. This platform claims that the token will be traded at $ 0.00376 level in one year. The platform also states that it could rise to $ 0.00878 in three or four years from now. In autumn 2020, Dogecoin will most probably grow by 0.5% or even more, as it has finally been recognized as a legitimate payment solution for products by global companies and numerous services. There is a possibility that DOGE will also partner with influential corporations, which can grow the coin’s value over time.
Dogecoin is probably the most well-established altcoin in the market with great potential for growth and further development.