Connect with us

Crypto

What is Dogecoin and where can you buy it?

Much meme. Many lolz. And so on.

dogecoin meme
Image: Wallpaper Cave

Quick Answer: Dogecoin is an alternative cryptocurrency (altcoin) created in 2013. It’s based on the doge internet meme and features a Shiba Inu as its mascot. Several major crypto exchanges, including Coinbase and Gemini, offer Dogecoin.

We all know about cryptocurrency at this point. 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.

Ethereum is a shade over $1,200. And Dogecoin is just $0.10. Somehow, we’ve reached the point where memes have real-world value.

Dogecoin’s history

dogecoin on table
Image: Forextime

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?

In the time since its inception, it’s taken hold as a tipping mechanism for content creators. r/tipworthy is a subreddit based around the very concept of tipping in cryptocurrency.

There have even been petitions begging OnlyFans to allow Dogecoin tipping.

It was developed using the protocols of two other currencies, Luckycoin and Litecoin because they used scrypt technology.

Because of this, miners can’t use SHA-256 bitcoin mining equipment to get hold of it. They need to use FGPA and ASIC devices instead, which are way more complex to produce.

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.

Dogecoin’s Coin-troversy

dogecoins on top of a chart
Image: Unsplash

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 (an admittedly accidental) $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? A few months after the third and final investment round, it filed for bankruptcy.

Every penny the Dogecoin community put into Moolah was lost.

It also seems that Alex Green was a fake name. The perpetrator was Ryan Kennedy, who had already pulled this stunt multiple times in the past.

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.

Investing

computer with stock trading chart opened
Image: Pexels

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 throughout each day, but there’s plenty of potential to make some money (not financial advice, mind you).

Download the Crypto.com app for Android and iOS.

Mining

a dog digging
Image: Pixabay

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’re looking to solo mine (sorry, I can’t bring myself to say dig), 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.

mining

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

dogecoin mining
Image: Pexels

A PC – Windows, macOS, or Linux will all do the trick. You won’t need much power under the hood if you’re just tinkering.

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.

EasyMiner is awesome for getting going on GPU mining, and if you’re going all in with ASICs, give CGMiner or MultiMiner a go.

For those jumping into pooling, try Prohashing or Multipool. Both of these support Scrypt mining pools, which is what you’ll need to get your digital paws on Dogecoin.

Is investing in Dogecoin worth it?

dogecoin on robinhood
Image: KnowTechie

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.

⚠️ I am NOT a financial advisor and have no financial qualifications. So don’t blame me if you invest and lose your home, partner, and firstborn child.

Have any thoughts on this? Carry the discussion over to our Twitter or Facebook.

Editors’ Recommendations:

More in Crypto