All About Dogecoin
Where is dogecoin headed? Launched as a joke why is it hitting the headlines? Read the whole report to understand.
The DEFINITION Of Dogecoin
Falling under the category of altcoins Dogecoin is a peer-to-peer open-source cryptocurrency launched in December 2013 with Shibu Inus the Japanese dog as its logo as it looked casual in its approach thereby gaining wide acceptance for online transactions whereas it is a decentralized virtual currency using peer-to-peer technology carrying out its operations. Hence enabling fast payments to anyone, anywhere across the globe as Dogecoin is scrypt based i.e. based on a password key.
Thereby Breaking Down Dogecoin
Created by Billy Markus and Jackson Palmer Dogecoin is the currently fastest growing cryptocurrencies with the community having a slogan which is ‘to the moon !’ showing their optimism and enthusiasm towards this virtual currency. Launched after the success of Bitcoin, Dogecoin is one of the many digital currencies broadly based on the Litecoin protocol differing from Bitcoin in that it uses scrypt technology as a proof-of-work scheme with a block time of 60 seconds and the difficulty retarget time is four hours.
The supply of coins would remain uncapped as there is no limit to how many Dogecoins can be produced with an inflationary coin as most cryptocurrencies are deflationary and dogecoin deals with the large numbers of the coin which are lesser in the value individually. Hence it is here that making the currency more accessible with a low entry barrier that is fit for carrying out smaller transactions as these traits are becoming popular in Dogecoin for tipping fellow internet goers for sharing or creating great content.
How Did Dogecoin Market Cap Hit $2 Billion: Launched As 'Joke Currency'
Cryptocurrencies truly stepped over the line when dogecoin was launched as a joke currency in 2013 to many investors and analysts as it is based on a popular meme about a Shibu Inu dog offering some benefit in terms of transaction speed, blockchain usefulness, or practical application, appearing to simply be an attempt to cash in on the popularity of cryptocurrencies.
Some investors have as such speculated that the fact that dogecoin is not the only one to remain in existence as it has also become increasingly popular since its launch with spotlights a cryptocurrency bubble where speculators invest in anything and everything out of a sense of investment fervor.
There Is No Laughing Matter: Market Cap Tops $2 Billion
Earlier on dogecoin’s market cap has since then soared to more than $ 2 billion as reported by the CNBC for the very first time taking place around the same time where ripple which is yet another popular digital currency is surpassing Ethereum to become the second-largest cryptocurrency by market cap making its co-founders billionaires in the process. Mimicking the massive growth in dogecoin the increase in the value of many digital currencies including Bitcoin, Ethereum, and others.
Therefore it was looked upon as Dogecoin is nothing more than a joke where for its detractors as launched in late 2013 as the internet currency it is according to Vice with designs aimed at creating a community of generous participants rather than a get-rich-quick scheme. It hit headline es in 2014 when it was used as a tool to help send the Jamaican bobsledding team to the Winter Olympics as it has since then sponsored a Nascar team also.
As The Price Spiked 400% In The Past Month
Dogecoin has remained relatively obscure since its brief stint in the spotlight in 2014 whereas there have been no software updates taken place in more than two years while the cryptocurrency has not made headlines for publicity stunts like it did in the first year of existence. Climbing in value by more than 400% the result is that a single dogecoin is worth just over $ 0.01.
Therefore, the dogecoin co-founder Jackson Palmer has expressed concern as it says a lot about the state of the cryptocurrency space in general where a currency with a dog on it hasn’t released a software update in over two years has a $ 1 billion+ market cap.
The Conclusion On Dogecoin
While the recent spurt of growth in dogecoin is speculation gone out of control or is the part of a more sustainable and overwhelming revolution propelling digital currencies into the future as only time can tell. It is important to make sure there is a leading position attributed to dogecoin as its simplicity helps win the investors. Hence, we need to scrutinize what the cryptocurrency is being looked upon for. We need the same diligence to watch dogecoin as we had with Bitcoin and others. So, watch the market carefully before you decide on dogecoin. Does it suit your interests and tastes?