Background of the DogeCoin
Known as the cryptocurrency that started off from an internet parody, the Dogecoin has come a long way since when it first started in 2013. It was started by Billy Markus and Jackson Palmer as an alternative to Bitcoin – a satire on the numerous fraud cryptocurrencies of those times. Dogecoin displays the face of the Shiba Inu dog from the "Doge" meme as its namesake and logo. About the Dogecoin Dogecoin does not have an upper limit fixed and has nearly 100 billion in existence till date. It can be mined on Windows, Mac, or Linux and can be traded on crypto exchanges such as BuyUcoin, WazirX etc. The coins are also stored in an online cryptocurrency wallet called the Dogewallet.
How Does Dogecoin Work?
It primarily works on the concept of smart contracts that work in the absence of intermediaries and work using the online blockchain technology. It is a decentralized system without any overseer or external regulator. This cryptocurrency is monitored by peer-to-peer internet protocol. Like most other cryptocurrencies, the dogecoin does not have any intrinsic value, and is susceptible to extreme volatility and manipulation. It can be used for mainstream commercial applications such as in poker games, in selling houses, and the tipping system, in which social media users, “tip” others for noteworthy content published online.
What are the Causes for the Meteoric Rise of Dogecoin?
SatoshiStreetBets and its members have built up enthusiasm for the currency. It has received the support of numerous big weights such as Elon Musk, rapper Snoop Dog etc. There has been an overt push to the ‘doge’ name by SpaceX announcing a rideshare mission to the moon funded by the cryptocurrency. Several fundraising events such as the 2014 Winter Olympics, NASCAR Sprint Cup series etc. has also added to its publicity. Its listing in Coinbase, the most popular virtual currency exchange in the US, has added to its credibility.
What are the Concerns Regarding Dogecoin?
Dogecoin has a history of scams. A large portion of the coins are in the hands of a few people (a.k.a cryptocurrency whales) and liquidating their holdings in the market will result in a steep drop in the price of the coin. There is no supply cap on the coin which leads to doubts in its long-term value potential. It is highly volatile and lacks any backing in tangible assets.
