Though cryptocurrency has been around since the late 1980s it didn’t become popular until about 12 years ago at the advent of Bitcoin. Bitcoin was the first decentralized cryptocurrency. Since that time, many other cryptocurrencies have come on the market. This includes Dogecoin, which has been around since 2013.
Dogecoin is a decentralized, peer-to-peer digital currency that started as a joke by Jackson Palmer - one of the founders. He combines a popular meme and cryptocurrency which were among the most popular topics talked about on social media. There was a Japanese dog meme; “Doge”. The tweet went viral. It was seen by software Engineer Billy Markus who contacted Palmer about making it a real cryptocurrency.
Originally, Palmer and Markus created a total supply of 100 billion hoping that it would create a lack of desirability. They have since removed the limit on the supply. Today there are 129.2 billion in circulation with an infinite amount to be released in the future.
When asked why and how it has become so popular, many people refer to the community around Dogecoin. This community can be found on Reddit. The participants post fun stories, memes, and jokes. Additionally, celebrities like Snoop Dog and Elon Musk have called out Dogecoin on social media apps like Twitter. This past Monday, Dogecoin surged an astonishing 8,100% ending the day at $.38 and started in January at less than $.01.
There are a few ways to obtain Dogecoin. First, there are 348 exchanges where you can buy, sell, and trade Dogecoin; similar to the way you would buy other investments like stocks, ETFs, and Mutual Funds. Additionally, you have the option of mining. Because there is no central bank printing new currency in the world of crypto, miners dig up new coins according to a pre-set schedule. The currency is then released into circulation. Ultimately, the miners are adding new currency to the blockchain ledger, which publically details who owns the currency.
Miners are rewarded with payment in the cryptocurrency that they are mining. While this may sound simple, in today’s crypto mining world, your regular PC is not powerful enough to perform the associated tasks of mining. It requires specific hardware that can be costly. In addition, you should consider the cost of energy and the internet speed requirements to facilitate the mining process. You could also consider a mining pool or cloud mining. Finally, you could join a Dogecoin club and buy it from other people.
If you don’t already have a cryptocurrency wallet, you will need to obtain one. There are really three choices for this. The first, and easiest, is an online wallet or app that can be downloaded onto your smartphone or mobile device. This is considered the least secure, though there are several security features on many of these applications. This option is good for beginners as long as you are not planning to invest large amounts into Dogecoin or other cryptocurrencies. There are also software options available for purchase and the most secure is a hardware wallet. Because the hardware wallet is considered the most secure option, it is advised that it is used if you are planning to make larger investments in any cryptocurrency.
One of the largest risks of investing in Dogecoin or other cryptocurrencies is the lack of regulation. Many countries, including the US, are working toward more regulation with the high demand for crypto. The US introduced the US Crytpo Currency Act 2020-2022 last March. It aims to provide a legal framework for crypto. These new regulations will likely provide strict laws that could slow the growth of crypto in years to come.
Another risk consideration is the potential of the Dogecoin network being hacked. In fact, the Dogecoin network was hacked back in 2014 and 21 million coins were stolen. Fortunately, at that time the Dogecoin community came together and was able to restore some of the losses from the hack.
Another consideration is that there are consistently new cryptocurrencies joining the market and they often come with new features that could outweigh the features of Dogecoin. As with any product, innovation is an important aspect to remaining popular or enticing to consumers. With new crypto coming on the market, Dogecoin and others will have to innovate to stay competitive and not become a thing of the past.
Dogecoin is very volatile. The community itself often refers to the common crypto slang word “HODL”. Which essentially stands for “Hold On for Dear Life”. This is not the feeling I want to have when investing for my future.
One of the main reasons I would consider owning a small amount of Dogecoin is the community. The community around Dogecoin is fun. They seem to enjoy the lighter side. Again, it started as a joke. The community has a sense of humor. They have a great following. It’s fun. I’ll admit, with recent notoriety, I became interested and made a $20 purchase just to see what happens and to be a part of the exciting community of Dogecoin. Additionally, Dogecoin has been on the market since 2013. They have a history. Though the value has not yet achieved $1, most of the features have been tested and proven. Newer forms of crypto don
1. What is Dogecoin?
Dogecoin is a decentralized, peer-to-peer digital currency that started as a joke by Jackson Palmer - one of the founders. He combines a popular meme and cryptocurrency which were among the most popular topics talked about on social media. There was a Japanese dog meme; “Doge”. The tweet went viral. It was seen by software Engineer Billy Markus who contacted Palmer about making it a real cryptocurrency.
Originally, Palmer and Markus created a total supply of 100 billion hoping that it would create a lack of desirability. They have since removed the limit on the supply. Today there are 129.2 billion in circulation with an infinite amount to be released in the future.
2. Why has Dogecoin become so popular?
When asked why and how it has become so popular, many people refer to the community around Dogecoin. This community can be found on Reddit. The participants post fun stories, memes, and jokes. Additionally, celebrities like Snoop Dog and Elon Musk have called out Dogecoin on social media apps like Twitter. This past Monday, Dogecoin surged an astonishing 8,100% ending the day at $.38 and started in January at less than $.01.
3. How can you obtain Dogecoin?
There are a few ways to obtain Dogecoin. First, there are 348 exchanges where you can buy, sell, and trade Dogecoin; similar to the way you would buy other investments like stocks, ETFs, and Mutual Funds. Additionally, you have the option of mining. Because there is no central bank printing new currency in the world of crypto, miners dig up new coins according to a pre-set schedule. The currency is then released into circulation. Ultimately, the miners are adding new currency to the blockchain ledger, which publically details who owns the currency.
Miners are rewarded with payment in the cryptocurrency that they are mining. While this may sound simple, in today’s crypto mining world, your regular PC is not powerful enough to perform the associated tasks of mining. It requires specific hardware that can be costly. In addition, you should consider the cost of energy and the internet speed requirements to facilitate the mining process. You could also consider a mining pool or cloud mining. Finally, you could join a Dogecoin club and buy it from other people.
4. What is needed to buy Dogecoin?
If you don’t already have a cryptocurrency wallet, you will need to obtain one. There are really three choices for this. The first, and easiest, is an online wallet or app that can be downloaded onto your smartphone or mobile device. This is considered the least secure, though there are several security features on many of these applications. This option is good for beginners as long as you are not planning to invest large amounts into Dogecoin or other cryptocurrencies. There are also software options available for purchase and the most secure is a hardware wallet. Because the hardware wallet is considered the most secure option, it is advised that it is used if you are planning to make larger investments in any cryptocurrency.
5. What are the risks associated with buying Dogecoin?
One of the largest risks of investing in Dogecoin or other cryptocurrencies is the lack of regulation. Many countries, including the US, are working toward more regulation with the high demand for crypto. The US introduced the US Crytpo Currency Act 2020-2022 last March. It aims to provide a legal framework for crypto. These new regulations will likely provide strict laws that could slow the growth of crypto in years to come.
Another risk consideration is the potential of the Dogecoin network being hacked. In fact, the Dogecoin network was hacked back in 2014 and 21 million coins were stolen. Fortunately, at that time the Dogecoin community came together and was able to restore some of the losses from the hack.
Another consideration is that there are consistently new cryptocurrencies joining the market and they often come with new features that could outweigh the features of Dogecoin. As with any product, innovation is an important aspect to remaining popular or enticing to consumers. With new crypto coming on the market, Dogecoin and others will have to innovate to stay competitive and not become a thing of the past.
Dogecoin is very volatile. The community itself often refers to the common crypto slang word “HODL”. Which essentially stands for “Hold On for Dear Life”. This is not the feeling I want to have when investing for my future.
6. What are some reasons to own Dogecoin?
One of the main reasons I would consider owning a small amount of Dogecoin is the community. The community around Dogecoin is fun. They seem to enjoy the lighter side. Again, it started as a joke. The community has a sense of humor. They have a great following. It’s fun. I’ll admit, with recent notoriety, I became interested and made a $20 purchase just to see what happens and to be a part of the exciting community of Dogecoin. Additionally, Dogecoin has been on the market since 2013. They have a history. Though the value has not yet achieved $1, most of the features have been tested and proven. Newer forms of crypto don