What is Dogecoin? Everything about the world’s first successful meme coin

Dogecoin is a cryptocurrency that was first created for fun, but a few years after its creation reached a billion-dollar market cap and received the support of a famous pioneer like Elon Musk. Although we can refer to a number of reasons for Dogecoin’s success, it’s undeniable that the hype around this meme coin was unpredictable and surprised the whole crypto community.

In this article, we are going to cover Dogecoin’s unique features and interesting stories. We will also take a look at its price history and the best digital wallets to hold this cryptocurrency. Stay with us.

Dogecoin; from creation to market cap appreciation

Dogecoin was created in 2013 by two developers called Billy Markus and Jackson Palmer. It is actually a means for conducting digital payments like Bitcoin, but it also differs from Bitcoin in many fundamental ways. The most significant difference that exists between Dogecoin and other cryptocurrencies like Bitcoin is the aim for which Dogecoin was created.

Dogecoin was created for fun and it did not mean to be serious at all.

Dogecoin’s name and logo are taken from a Japanese dog breed called Shiba Inu. Before Dogecoin, this dog’s face was known as an Internet meme and people used it in their funny texts.

That Dogecoin’s developers made use of an Internet meme for their project’s name and logo proves that they really aimed to create something unserious. Dogecoin’s developers didn’t care about marketing and acceptance at all. The only thing they thought of was creating a friendly payment system.

Despite all these facts, Dogecoin gained huge popularity. Only one month after its creation, its official website had one million views. So, the question that arises here is what factors led to this success?

We’ll answer this question in the following section.

Factors leading to Dogecoin’s success

If we want to name a few factors that have led to Dogecoin’s success, we can refer to:

• Funny name and logo: Dogecoin’s funny name and logo attract almost everyone and according to a lot of experts, this is a leading factor in Dogecoin’s success.

• Getting issued at the right time: dogecoin was issued in late 2013. At that time, Bitcoin was about to get banned in China, and its price after recording a new high had been caught in a bearish trend. Exactly at that time, Dogecoin was introduced on Reddit and attracted a lot of investors. On December 18, 2013, when Bitcoin had lost half of its value, Dogecoin’s price increased by %450.

• Being appropriate for small payments: due to its low price and lack of complexity, Dogecoin is usually known as a convenient and low-cost means for conducting small payments.

• Having the support of famous people: Dogecoin has received the support of so many famous people including Elon Musk and Mark Cuban and according to many, this has been the most important factor for its success. Elon Musk and his stories with Dogecoin were so attractive and influential that we decided to dedicate a separate part to it.

Elon Musk; the so-called “Dogefather”

Elon Musk, the world’s richest person and the CEO of Tesla and SpaceX, is an active Twitter user. On his Twitter account, he has repeatedly supported Dogecoin. He usually uses the phrase “to the moon” for Dogecoin. Some people believe that Elon refers to Dogecoin’s price that is going to go to the moon and some others believe that Elon is going to use Dodge in his spatial projects. He even calls himself “the Dodgefather”!

Besides all these tweets that have a fun nature, in a tweet he shared on May 14, 2020, he officially announced his partnership with Dogecoin developers to improve transaction efficiency. Following this tweet, Dogecoin’s price reached its then all-time high ($0.56).

It’s worth mentioning that Elon Musk wasn’t the only famous person who supported Dogecoin. Mark Cuban, the famous billionaire investor, is another pioneer who has revealed his interest in Dogecoin. Insisting that he does not prefer Dogecoin over Bitcoin, Mark Cuban explained that he owns some amount of Dogecoin and believes this meme coin has unique features and use cases.

How does Dogecoin work?

Dogecoin is a blockchain-based cryptocurrency that like other cryptocurrencies, has its own nodes and its transactions go through the consensus process. The consensus algorithm Dogecoin uses is “proof of work”. Therefore, Dogecoin should be mined like Bitcoin.

Dogecoin was a fork of a network called Luckycoin. Luckycoin itself was a fork of Litecoin and Litecoin is a fork of Bitcoin. So, you can easily conclude that Dogecoin, Litecoin, and Bitcoin have similar structures and they only have slight differences.

For example, one difference that Dogecoin has with Bitcoin is that Dogecoin does not have a supply cap. The number of DOGE units that can be issued per year is limited to 100,000 units, but the total supply is infinite.

Dogecoin price and wallets

At the time of writing, each unit of Dogecoin is being traded at around $0.14. This meme coin’s all-time high has been $0.73 and its market cap has surpassed 18 billion dollars.

There are several digital wallets you can use to store Dogecoin (both software and hardware). The table below covers some of the most used wallets for storing DOGE.

 

Name Type Download/ Access Link
Trust Wallet Software/ Mobile Download
Atomic Software/ Mobile and Desktop Download
Exodus Software/ Mobile and Desktop Download
The official Dogecoin Wallet Software/ Mobile (only for Android) Download
Ledger Hardware Physical
Trezor Hardware Physical