What is Dogecoin and what does DOES derive its value from?
Dogecoin is one of the most popular digital currencies and is represented with the face of a Shiba Inu dog. The properties of Dogecoin differ from many other coins in terms of its unlimited supply of coins. While other coins, such as Bitcoin, are limited to a total volume of 21 million coins, Dogecoin is more suitable as a currency for spending rather than a store of value.
Founders of Dogecoin
Dogecoin was developed by programmers, Billy Markus and Jackson Palmer in 2013 which was inspired by the Shiba dog meme and the U.S. cartoon comedy series “Homestar Runner” by using Shiba dog as the coin’s symbol to create a friendly approach to the cryptocurrency industry, while also being meme-focused and accessible for users.
Dogecoin is a digital currency that is simple and easy to use. It is used in a decentralized exchange (DEX), a cryptocurrency exchange that allows for a peer-to-peer coin exchange or trading system in which buyers and sellers make a direct exchange through the service of DEX. DOGE uses the same consensus system as the world's No. 1 coin, Bitcoin, which is Proof-of-Work.
Dogecoin uses the Scrypt cryptographic technology, which takes only 1 minute to create each block with an unlimited amount of coins. This means that there is no limit to the number of Dogecoin that can be mined. As a result, miners can earn satisfying returns.
Although Dogecoin is designed to have no limitation to its coin supply, which may affect the value of the coin. However, in terms of system security, it benefits the network by making 51% Attacks more difficult for those who aim to gain control over the network and manipulate its consensus algorithm, because new coins can be generated every day.
Dogecoin is also primarily used for tipping on Reddit and Twitter to reward users that share useful content in the DOGE community and to trade items within a group of people or shops that use Dogecoin as a medium of exchange such, as KhonKaen Technology College, which accepts Dogecoin as tuition fees, and Nanyang Shops, where Dogecoin can be exchanged for products.
Dogecoin’s Turning Point
Dogecoin has gained immense popularity after the famous businessman Elon Musk, the founder of Tesla, made an open vote on the Twitter platform about “What is the future currency of the world?” which Dogecoin received the most votes with 71% of the 2,432,725 votes, bringing the price of Dogecoin up by more than 1000% in just one month.
Dogecoin has no limit on how many coins can be created, which means the number of DOGE will always be increasing. This makes it unsuitable for being a store of value.
Dogecoin is more suitable for being a transactional currency because it can process transactions more efficiently. Compared to Bitcoin, which takes around 10 minutes to create a block, Dogecoin only takes 1 minute to do so.
Dogecoin gas fee is also lower, hovering around 0.65 USD (around 20 baht) per 1 transaction, while the gas fee for Bitcoin can be as high as 15 USD (around 500 baht)
Where can I find Dogecoin?
Other than buying Dogecoin directly on exchanges, we can also mine it. The process uses a hashing algorithm called Scrypt, which is less complex than SHA-256. Furthermore, you can also get dogecoin by receiving tips in r/dogecoin on Reddit, which is a community for dogecoin enthusiasts.
In reference to statistics from Coinmarketcap on December 18, 2022, Dogecoin is ranked as the 13th highest in terms of market capitalization, with around 15 billion U.S. dollars or around 508 billion Thai baht. There are currently 132,670,764,300 DOGE in circulation.
Additionally, dogecoin once made an all-time high at 24.55 baht and is hovering around the price of 3.83 baht at the time of writing.
Dogecoin is an increasingly popular digital currency today. Although in the past Dogecoin was not as popular, its turning point appeared in the case of Elon Musk, causing its price to skyrocket. Additionally, the usage of Dogecoin is not complicated and there is no limit on the number of coins that can be created, allowing the coin to be accessible to the community. What will the future of Dogecoin be like? We will have to wait and see!