Currency

Dogecoin: Everything you need to know about the cryptocurrency

Dogecoin: Everything you need to know about the cryptocurrency

Dogecoin

We’re going to the moon.

The proponents of Dogecoin or DOGE, a cryptocurrency that started as a joke but is now one of the most popular coins around, would have you believe that the sentence above is all you need to know about Dogecoin.

In a way, they’d be right. Dogecoin does not require a lot of thinking. Fans of the cryptocurrency simply buy it and hodl it (a crypto way of saying “not selling”) until…well, until something great happens. Until you become rich, perhaps.

But is it really that simple? Read on.

The history of Dogecoin

It started as a joke. Bitcoin, the original cryptocurrency, was an impressive technical innovation that let anyone exchange digital money at low fees and without the need to ask for anyone’s permission. But Bitcoin was also open source, meaning everyone could copy it, and at one point, everyone did, with clones such as Litecoin and Peercoin popping up everywhere.

Dogecoin is the funny answer to this trend. Created in December 2013 by software engineers Billy Markus and Jackson Palmer, it’s a copy of Bitcoin (more precisely, Litecoin, which itself is fairly similar to Bitcoin) that features the Shiba Inu dog and is almost always referred to in foolish language that abounds with dog- and moon-related metaphors.

Almost from the get-go, Dogecoin garnered a devoted following. It attracted people who liked the idea of crypto but wanted to make fun of Bitcoin. It attracted people who liked dogs. It attracted anyone who wasn’t particularly serious about crypto, but still wanted to participate.

dogecoin

Not everyone gets it. Even its co-founder Palmer washed his hands off it — in 2018, he said that the skyrocketing price of Dogecoin was a signal that the crypto market was overheated. “I think it says a lot about the state of the cryptocurrency space in general {that a} currency with a dog on it which hasn’t released a software update in over 2 years has a $1B+ market cap,” he said in January 2018 — and sure enough, the crypto market suffered a horrible crash a few days later.

But Dogecoin persevered. Partly, most likely, due to the fact that it doesn’t require a lot of active management, and partly due to the crypto space recovering tremendously in 2020, Dogecoin has become bigger than it ever was.

Is Dogecoin technically sound?

Not really. Well, it is, in the sense that it started out as a copy of Litecoin, which is fairly technically sound. It’s a cryptographically protected online network that lets one user send DOGE to another in a permissionless way. It works, though it’s not nearly as secure or decentralized as Bitcoin.

SEE ALSO: How to buy, use, and spend Bitcoin

Source: Dogecoin: Everything you need to know about the cryptocurrency

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