Dogecoin was launched in 2013, and it is a peer-to-peer and open-source cryptocurrency and an alternative coin based on a sarcastic meme.
Dogecoin is well-known for the Shiba Inu dog that is its logo. Dogecoin was created as a joke, but its blockchain is legit, and its underlying technology is based on that of Litecoin.
Some notable features of Dogecoin are that it uses a Scrypt algorithm and a Proof-of-Work consensus mechanism. Dogecoin is also known for its extremely low price and unlimited supply.
|Technology||Scrypt technology adapted from Litecoin|
|Market Value||$32 billion+|
|Open-Source – Yes/No?||Yes|
|Consensus Method||Proof-of-Work (PoW)|
|DApp relation||Dogecoin interacts with DApps through the Ren Project|
|Founders||Billy Markus and Jackson Palmer|
Dogecoin currently has a market cap of more than $32 billion, and it is ranked #9 on the Altcoin list that features over 12,000 different alternative coins.
The technology that Dogecoin uses was derived from Litecoin, namely Scrypt, which is faster than the SHA-256 algorithm that Bitcoin uses.
Scrypt is a slow-by-design key derivation function that was developed to create extremely strong cryptographic keys in blockchain technology.
How does Dogecoin Work?
Dogecoin is a digital currency that is based on blockchain technology, much like Ethereum, Litecoin, and Bitcoin. Blockchain can simply be defined as a distributed and secure digital ledger.
This ledger contains all transactions that are made using decentralised digital currencies such as DOGE, BTC, ETH, and others.
In a decentralised ecosystem, all nodes or computers have an identical copy of the Dogecoin blockchain ledger. This ledger is frequently updated as new transactions are carried out in DOGE.
Like other cryptos, the blockchain network of Dogecoin uses cryptography to ensure that all transactions on the network remain secure.
Dogecoin employs a Proof-of-Work consensus mechanism to release new coins, verify transactions, and ensure network security.
In the Proof-of-Work consensus, miners use computers to solve complex mathematical equations that process transactions and subsequently add new blocks onto the Dogecoin blockchain.
Miners are rewarded for their efforts in processing transactions and supporting the ledger by receiving newly minted Dogecoin and a portion of transaction fees, which miners can then hold as an investment, or they can sell their DOGE on the open market.
DOGE can be used for payments and purchases like any other currency, but DOGE is not a very effective store of value like Bitcoin and others.
The reason why DOGE is not a very good store of value relates to the fact that there is no lifetime cap on the number of DOGE that will be created through mining, which means that Dogecoin is highly inflationary by default design.
The blockchain rewards that miners earn for their work by creating DOGE daily make it extremely difficult for DOGE to achieve speculative price gains, which means that the cryptocurrency will not hold up over time.
In terms of transaction speed, Dogecoin's network speed is 1 minute to verify a block, which makes Dogecoin ten times faster than Bitcoin, which has a 10-minute block time. Dogecoin can process 70 transactions a minute while Bitcoin processes 7 per second.
In terms of projects, Dogecoin is not a platform like Ethereum where projects can be developed and launched. However, Dogecoin, like many other cryptocurrencies, is establishing a position in Decentralised Finance (DeFi), which is made possible through projects such as Ren.
Because Dogecoin cannot interact with smart contracts directly because of the limits of its blockchain, DOGE must be “wrapped” so that they can be locked into a state where they become interoperable with a smart contract.
Through the Ren project, Dogecoin (renDOGE) can be used on the Ethereum blockchain to access the DeFi network. Through this, Dogecoin now has a connection to decentralised applications (DApps), which allows for transactions and interactions on decentralised exchanges (DExs).
In terms of its advantage above other cryptocurrencies, Dogecoin's success is attributable to the third-richest man in the world, Elon Musk, who is a loyal follower of the coin.
Elon Musk often pitches in with memes on his Twitter account, and it has been proven that he has a lot of influence over certain cryptocurrencies, especially Bitcoin and Dogecoin.
Dogecoin has the backing of a loyal online community, also known as the #DogeArmy, and it is well-known as a “Meme Currency” that has strong social media action.
What are the Dogecoin-based Projects?
There are no Dogecoin-based projects because Dogecoin is not a blockchain project that allows for the development and launch of projects on its platform.
However, Dogecoin can interact with DeFi and DApps through blockchain projects such as Ren. Through the Ren Project, DOGE is “Wrapped” to form renDOGE, which can then be used on the Ethereum blockchain to access the DeFi network and DApps, allowing for transactions and trade on DExs, such as Uniswap.
For what is Dogecoin used?
Dogecoin is an alternative coin that has a significant userbase. DOGE is bought, sold, traded, and exchanged on different cryptocurrency trading platforms against fiat/paper money and other cryptocurrencies.
DOGE can also be used to exchange physical and tangible items across online communities such as Reddit and Twitch. On these platforms, users in circles often share cryptocurrency-related information.
Furthermore, DOGE is also used to tip content creators on these platforms, and Dogecoin has even been used in an attempted property sale. It also has other uses in the pornography and gambling industries.
Another use for Dogecoin is Dogetipbot, which is a cryptocurrency transaction service that is used especially on Twitch and Reddit. This allows users to transfer Dogecoins to other users through certain commands in the Reddit comments section.
However, Dogetipbot was discontinued in 2017 and taken offline after the creator was declared bankrupt, which resulted in users losing the funds that they had stored in the Dogetipbot system.
DOGE is used as currency, much like Litecoin, Ethereum, Bitcoin, and others. It is not a good store of value like Bitcoin because it is a highly inflationary coin because of its unlimited supply.
It is important to understand Dogecoin because it is one of the top 10 alternative coins, it is prominent on social media platforms, and it can have a future as a digital currency that can be used for payments if merchants and retailers accept it.
Dogecoin is popular for many reasons, including the influence that Elon Musk has over DOGE and Bitcoin, which makes it a coin that is worthy of attention.
Is understanding Dogecoin hard?
No, understanding Dogecoin is not hard.
Dogecoin is an alternative coin that is often described as the “fun” version of Bitcoin, but that functions in a similar way to digital coins such as Bitcoin, Litecoin, and others, that are used as currency to pay for products and services.
Dogecoin is useful for payments and purchases, but it cannot be used as a store of value like Bitcoin. This is because Dogecoin does not have a limited supply, making it extremely inflationary by default design.
Dogecoin uses the same technology as Litecoin, namely a Proof-of-Work consensus mechanism along with Scrypt to verify transactions and add blocks to the blockchain, which makes DOGE a mining-based coin, unlike Cardano, Solana, and many other cryptocurrencies.
Dogecoin is not a blockchain-based platform that uses unique technology such as NEO, Cardano, Solana, or Ethereum that allows for Decentralised Applications to be developed and built on the ecosystem, and by default, Dogecoin is not compatible with DApps or DeFi applications.
However, through the Ren Project, renDOGE can be produced and used on platforms such as Ethereum, where DOGE can be used in DApps and form part of DeFi, which paves the way forward for the use of DOGE in these applications in the future.
What is Dogecoin's Technology?
- Dogecoin's technology involves the following:
- Blockchain Technology
- Consensus Mechanisms (Proof-of-Work)
1. Blockchain Technology
A blockchain can be defined as a system that records information in such a secure way that it makes it difficult or impossible to alter, hack, or cheat.
A blockchain is a digital ledger that records transactions. This ledger is duplicated and sent across a large network of computer systems that are known as nodes.
Every block on Dogecoin's blockchain has several transactions, and when a new transaction is initiated, the transaction must be recorded and added to the ledger of the participant.
This overall system is known as Distributed Ledger Technology (DLT), and the transactions on this are recorded with an immutable cryptographic signature also known as a “Hash.”
When one block on the entire chain is changed, it would be picked up immediately. This means that if hackers wanted to corrupt a blockchain, they would have to change every single block on the chain across all the versions of the chain that is distributed across thousands of nodes.
The Dogecoin blockchain is continuously growing as more people transact, adding more blocks to the chain, subsequently increasing the security of Dogecoin's blockchain, making it almost impossible to hack the blockchain itself.
2. Dogecoin's Proof-of-Work Consensus
Dogecoin uses a Proof-of-Work consensus mechanism, which was first introduced by Bitcoin in 2009. Proof-of-Work, or PoW as it is also known, is used to confirm transactions and to add new blocks to a blockchain.
With a PoW, miners compete against one another to discover the hash and to complete transactions on the network, allowing the miner to be rewarded in doing so.
It takes a significant amount of computational power to solve these algorithms, and the difficulty frequently increases, which means that to be able to continue mining and gain rewards, miners keep having to use stronger and faster computers.
This is detrimental to the environment because of the amount of electricity mining operations used in a PoW. This is where Scrypt PoW comes in.
Scrypt was one of the first hashing algorithms that were introduced to improve on the SHA-256 algorithm, which is a pure PoW consensus mechanism.
Scrypt is based on the password-key derivation function (KDF), which is a hash function that derives one, or more, keys from a secret value. This can be anything from a master key, password, passphrase, and so on.
Scrypt is a solution that was developed to eliminate the need for powerful machines such as ASICs, which dominate the PoW mining market.
As opposed to SHA-256, Scrypt requires that miners generate random numbers in quick succession. These numbers are then stored in the Random-Access Memory of the miner's processor, which is then accessed continuously before submitting a result.
This makes it possible for anyone with a decent computer to mine DOGE and other Scrypt PoW-based cryptocurrencies.
In terms of evolution, Dogecoin's history is as follows:
- Dogecoin was initially developed as a “joke” by Billy Markus and Jackson Palmer.
- At the time, Billy Markus worked as an IBM software engineer while Jackson Palmer was a software engineer for Adobe.
- Both Markus and Palmer wanted to create a peer-to-peer digital currency that could become more widespread than Bitcoin. They also wanted to distance their digital coin from the controversial history that other coins experienced.
- Dogecoin was officially launched in 2013, and within the first month, the official website, Dogecoin.com, experienced more than one million visitors.
- Palmer was the reason why the idea of Dogecoin became a reality because he purchased the domain Dogecoin.com and added a splash screen to it, featuring the logo of Dogecoin and scattered Comic Sans text, the exact thing that sparked the memes behind Dogecoin that are still popular today.
- Markus saw the website, and he reached out to Palmer, and together they started working on further developments for Dogecoin.
- The protocol of Dogecoin was designed based on Litecoin and Luckycoin, which both employ Scrypt technology alongside a Proof-of-Work consensus mechanism.
- With the use of Scrypt, it meant that miners who traditionally mine SHA-256 coins such as Bitcoin could not use their specialised ASIC mining rigs to gain an advantage over other miners.
- By December 2013, Dogecoin increased by 300% in value within 72 hours of trading, rising from $0.00026 to $0.00095. During this time, DOGE saw billions in trading volume daily.
- This significant boost in DOGE came after many other cryptocurrencies were severely impacted by China's decision to ban Chinese banks from investing in Bitcoin.
- After three days, however, DOGE experienced a significant crash, with its value dropping by 80% because of the event, followed by large mining pools exploiting a small amount of mining power that is required to mine DOGE.
- During the same time, Dogecoin experienced its first major hack when millions of coins were stolen from the native Dogewallet platform. The hacker accessed the filesystem of the wallet and modified the send/receive page to send all coins to a static address.
- In 2014, Dogecoin's trading volume momentarily surpassed that of Bitcoin and all other cryptocurrencies in circulation combined. However, its market cap remained behind Bitcoin, and this achievement was short-lived.
- In its beginning stages, Dogecoin has a randomised reward that was issued for each block that was mined, but in March 2014, the behaviour was updated to a static block reward instead.
- In 2015, Jackson Palmer left Dogecoin without any plans to return. The reason for his departure was that Dogecoin was initially conceived to be a libertarian alternative to money, but it had been transformed into something exploitative and built to enrich the top proponents.
- Cryptocurrencies experienced a bubble between 2017 and 2018, where Dogecoin briefly peaked at $0.017 per coin, placing its market capitalisation close to $2 billion.
- In 2020, Dogecoin's price spiked after a TikTok trend which was aimed at pushing the price on DOGE to $1.
- Dogecoin saw a significant increase in January 2022 to a price of $0.07 because of the attention that it received from Reddit users. This was sparked by Elon Musk and the GameStop “short-squeeze.”
- In February 2022, Dogecoin reached a new all-time high price of $0.08 after Elon Musk, Snoop Dogg, and Gene Simmons encouraged the cryptocurrency.
- In March 2022, Mark Cuban, owner of the Dallas Mavericks, announced that his NBA team would allow fans to purchase both tickets and merchandise using DOGE, and within two days, Cuban announced that his franchise had become the top Dogecoin-based merchant, experiencing more than 20,000 transactions.
- In April 2022, the altcoin market saw a significant boost following the direct listing for Coinbase, even though the platform did not feature DOGE. This caused DOGE's price to surge to $0.10 before it experienced an all-time high of $0.45 shortly after.
- Dogecoin's value surpassed $0.50 on May 8, 2022, and later during the month, the crypto saw a drop of 34% after Elon Musk's appearance on Saturday Night Live.
- The following day, Elon Musk's company SpaceX announced a rideshare mission to the Moon that was entirely funded by DOGE. This milestone meant that it was the first space mission that was funded by crypto, and the internet was flooded with memes relating to Dogecoin going to the moon.
- In August 2022, the Dogecoin Foundation announced its re-establishment with plans to realign its focus on supporting the Dogecoin ecosystem along with its community and to promote the future of the Dogecoin Blockchain as well.
In terms of Dogecoin's potential and future, it is a guessing game because of the polarization of opinion, especially when derived from commentators, influencers, and prominent figures such as Elon Musk.
However, the uptick associated with attention forms part of a larger phenomenon of investors who are still showing interest in speculative assets.
For example, Andres Lapthorne, who is the global head of quantitative strategy at Société Générale SA, has cited that Dogecoin is the perfect example of what is known as an increasingly large number of “weird” and “wonderful” signs of market excess.
Dogecoin was the first meme currency, and it has resulted in more than 50 others that are now listed on websites that feature all altcoins.
However, like any other cryptocurrency, the largest inhibitor of these coins' growth will be the inability to use them for transactions, unlike Dogecoin.
Some meme currencies, unlike other digital currencies, face the issue that their usage heavily relies on the number of users that demand the meme. If investors lose interest in the meme, the price will inevitably collapse, making the memes worthless.
This is something that can affect Dogecoin as well but what counts in its favour, is the fact that Dogecoin is one of the most speculative and volatile cryptocurrencies in the market, which means that there is future potential for now.
What is Dogecoin’s price?
Dogecoin was launched in 2013, and its price average for the past five years is as follows:
|2017||2018||2019||2020||2021 To date|
|DOGE Price High||$0.003||$0.01||$0.003||$0.004||$0.68|
|DOGE Price Low||$0.0001||$0.002||$0.001||$0.001||$0.009|
|Market Cap||$424 M||$1.93 B||$464 M||$595 M||$88.6 B|
Is Dogecoin Open-source?
Yes, Dogecoin is an open-source project.
Open-source means that software is collaboratively produced and that it can be shared freely. In addition to this, it also means that it is transparently published and that it is developed to be a community instead of being the property of a single entity or a group.
An open-source project is developed without a single chokepoint in the process, and that there is not a single company or one individual that can make, own, sell, or distribute it.
There is no single owner of Dogecoin's network, and there are several different benefits to the decentralization of this technology.
There are some concerns that the technology may become vulnerable if the technology is open-source, but the open-source nature of Dogecoin helps to protect it and to maintain its transparency.
One of the main philosophies involved with open-source projects such as Dogecoin is that several efficiencies can be gained. When developers allow for the input of others, they can boost the potential applications that are available and spread the technology.
Open-source projects mean that it is a public and transparent way for transactions to be recorded. This eliminates any sort of operator tampering and revisions.
Dogecoin, like Bitcoin, ensures transparency by requiring that all new entries include a proof-of-work. In addition to this, this type of transparency can expand the use of applications of blockchain technology to be used in elections and several others.
With Dogecoin being open-source, it instills more confidence and faith from investors because of the security and transparency that it ensures.
What is the best Dogecoin wallet?
Simply defined, a Dogecoin wallet is a piece of software where users store the necessary data to access their Dogecoin (DOGE) funds. This data contains a private key, which is like a password, and a wallet address, also known as a public key, which acts as an account number would.
In terms of the types of Dogecoin wallets, users can distinguish between the following:
- Cold Wallets – which are offline wallets that store funds in an application that is not connected to the internet.
- Hot Wallets are online applications that require an internet connection.
- Physical wallets are unique pieces of hardware like USB devices that keep crypto funds offline.
- Web wallets are web browser ad-on wallets.
- Desktop wallets – which are applications that allow users to manage their finds on macOS, Microsoft Windows, or Linux.
- Paper wallets which is a piece of paper with a code or QR code on them. To access the assets, the user enters the key or scans the code to access their account.
The functions and importance of a Dogecoin wallet are the same as owning and using a physical wallet where fiat currencies are stored. Dogecoin wallets can be used to store, transfer, receive and manage DOGE in one central place.
When crypto coins are stored in a wallet, it does not mean that the actual coins are there, but the wallet instead generates a private key, also known as a hexadecimal code, that is used alongside another hexadecimal code, or a public key, which is linked to a certain amount of currency.
When users search for the best Dogecoin wallet in which to store their DOGE, they must consider these factors:
- Customer Support – if users have issues with their wallet or transactions, they must be able to contact their wallet service provider quickly to resolve any issues.
- Positive Reviews – one of the best ways to compare wallets is to compare different user reviews that provide an honest opinion of the wallet.
- User-friendly – for those who are new to cryptocurrencies or who are not good with technology, it is important to choose a wallet that is simple yet has the security features that the user needs.
- Development and technology – the team behind the wallet must be working on continuous improvements and developments to ensure that the wallet's features and functions are updated.
- Backup and Restore Options – the wallet must be backed up, and the user should be able to restore it if they need to, ensuring that they do not lose any funds.
- Security – Security features are one of the most important components. Users must ensure that they are provided with two-factor authentication, multi-signature, biometrics, and other security features that ensure that their funds are safe.
- DOGE support – to use a wallet to store DOGE, the user must choose a wallet that is compatible with Dogecoin amongst several other coins.
The best Dogecoin wallets are:
Ledger Nano S – Hardware Wallet
- KeepKey – Hardware Wallet
- Jaxx – Desktop and Mobile Wallet
- Coinomi – Mobile Wallet
- Trezor One – Hardware Wallet
- Atomic Wallet – Mobile and Desktop
- Official Dogecoin Wallet – Desktop and Mobile
1. Ledger Nano S – Hardware Wallet
Ledger Nano S is one of the safest cryptocurrency wallets because it is offline and does not need to be connected to the Internet. Ledger Nano S is popular, and it has a plethora of security features.
It is a small USB device that stores the user's private keys and is protected by a PIN. The device also has easy backup and restore features along with additional safety features, such as 2FA.
The device also has a built-in OLED display along with buttons on the device that must be physically pressed and can be used for manual transaction verification, further adding to its robust security.
Ledger Nano S has a user-friendly and quick setup process, and there are more than 20 cryptocurrencies supported by the device, including Dash, Ethereum, Bitcoin, and many others.
The only drawback of this device is the costs involved. However, the robust security, ease of use, and cross-compatibility make it worth the price tag.
2. KeepKey – Hardware Wallet
Like Ledger Nano S, KeepKey is another leading hardware wallet that has been around since 2015. KeepKey is an offline wallet that is compatible with different cryptocurrencies.
KeepKey is focused on offering robust security, and because it has a hierarchical deterministic (HD) function, users can generate and store unlimited numbers of private keys on the device.
The device is protected by a PIN, and it has a large screen display that allows users to track transactions. Another benefit of the device is that it has a button on the body that must be pressed for transactions to be physically confirmed by the user.
Users can easily transact between different cryptocurrencies using ShapeShift in combination with KeepKey, and the wallet can easily work on Linux, Windows, macOS, and Android systems. However, KeepKey is one of the most expensive wallets on the market because of its sophisticated functions and features.
3. Jaxx – Desktop and Mobile Wallet
Jaxx is one of the most popular cryptocurrency wallets available on mobile and desktop platforms. It was launched in 2014, and it supports a wide range of different crypto coins.
It is the perfect cross-platform wallet that can be accessed through desktop or mobile phones, with seamless account synchronization and integration over all devices.
Jaxx allows users to manage their private keys, and the wallet already has the ShapeShift functionality added to it.
4. Coinomi – Mobile Wallet
Coinomi is user-friendly, and it has a plethora of features offered to cryptocurrency users. Coinomi emphasizes fast and easy management of more than 1,000 coins.
Coinomi is an HD wallet, and it can quickly be set up and used from the get-go. In addition, Coinomi does not have an extensive “Know Your Customer” (KYC) process where users must verify their identity and their proof of residence before they can transact.
Users can easily start sending and receiving payments, and Coinomi is also compatible with ShapeShift exchange for additional functionality.
5. Trezor One – Hardware Wallet
Trezor is a trusted name in the crypto space, and the Trezor one was developed by a Czech-based company, SatoshiLabs. Trezor is known to be one of the most trusted hardware wallets that supports more than 700 different coins.
The private keys to the Dogecoin wallet are kept on the Trezor device, making it extremely hard for hackers to get to it via online connections.
The Trezor wallet interacts with the corresponding Trezor Bridge that offers a connection between the user's device and their browser.
Trezor one is an entry-level hardware wallet, but it offers a user-friendly user interface, and manual transaction confirmation is needed by using the button on the device.
6. Atomic Wallet – Desktop and Mobile
The Atomic Wallet is another popular option that is decentralized and downloadable on mobile devices with either Android or iOS and desktops that run on Windows, macOS, and Linux.
The user's private keys are saved and kept on the application, and users also do not need to go through extensive, tedious KYC checks when they download, install, and use Atomic Wallet.
Apart from being compatible with Dogecoin, Atomic Wallet is compatible with 300 other cryptocurrencies. In addition, users also have the option to buy Bitcoin, Ethereum, and several other coins through the wallet.
The Atomic Wallet also offers the option for staking of coins and an exchange where users can swap between 60 different coins. Atomic Wallet has more than a million users, which makes it extremely popular in the crypto space.
7. The Official Dogecoin Wallet – Mobile and Desktop
This is the native Dogecoin wallet, and the desktop version of it includes the core wallet that will download the entire Dogecoin blockchain and help secure the entire network.
There is also a lite version called MultiDoge which can be used to store and transfer Dogecoin. The wallet comes in a desktop version, but there is also a mobile version for Android devices.
Both Core and Lite are available for use on PCs that run Linus, macOS X, and Windows. However, it should be noted that the lite version of the wallet cannot be used for mining.
The Dogecoin wallet is not physically alluring, but it is quick and easy to set up and use, providing users with basic functionality.
What is Dogecoin’s Burn rate?
Coin burns can simply be defined as the process where coins are sent to a public address where they cannot be spent because the private keys of these addresses are unobtainable.
Coins are burnt for various reasons, including:
- To create new coins
- To reward token holders
- To destroy any coins that were not sold after an Initial Coin Offering (ICO) or a token sale.
Dogecoin does not have a burn schedule.
Dogecoin is inflationary because it does not have a maximum supply. Dogecoin's miners are rewarded 10,000 coins per minute when a new block is added to the blockchain.
At this rate, there is 14.4 million DOGE added to the blockchain per day. However, miners do not tend to keep these coins. They convert these coins into either Bitcoin, Ethereum, or other cryptocurrencies.
To ensure that the price of Dogecoin is kept stable, 14.4 million DOGE x the current price of DOGE must flow into the blockchain, or the price will never increase.
It does not mean that DOGE cannot be burnt because any cryptocurrency can be burnt. Cryptos can easily be burnt when users send them to a public address for which there is no private key. Therefore they cannot be retrieved from this address.
Some people burn certain amounts of Dogecoin, and according to the Dogecoin Reddit Community, this is in support of the platform.
Binance burns coins a few times a year, with its 7th coin burn having destroyed 830,000 BNB ($16 million), with VeChain and TRON using the same model.
EOS is another coin with frequent burns, with a burn that took place in 2019 where 34 million EOS was destroyed, worth more than $150 million. There are cryptocurrencies such as VeChain and Ripple that burn tokens during every transaction.
What can you do with Dogecoin?
Dogecoin can be used for a variety of applications, including:
- It can be used to tip content creators
- It can be used to pay for products and services
- It can be exchanged for other cryptos
- It can be traded through brokers
1. It can be used to tip content creators.
This is one of the largest uses for Dogecoin, especially on Reddit and Twitch. Users who hold DOGE can spend their coins tipping content creators for valuable contributions on these forums and platforms.
This also helps to spread the use of DOGE, ensuring that it sees continued appreciation as more people start using it.
2. It can be used to pay for products and services.
Businesses around the world are starting to accept payments from currencies such as Ethereum, Bitcoin, Litecoin, and even Dogecoin.
Dogecoin is seeing increased numbers of people that purchase the coin across different cryptocurrency platforms, and a rise in demand from consumers means an increase in interest from other businesses.
There are over 1,300 merchants who accept Dogecoin payments from the end of May, with this number steadily increasing. This is attributable to the following factors:
- Extremely high liquidity is associated with DOGE, unlike many other deflationary cryptocurrencies like Bitcoin. Dogecoin is inflationary because it does not have a limited supply, leaving a lot of room for the supply to inflate.
- Fixed number of issued tokens – Dogecoin sees a fixed number of tokens that are released yearly, which keeps the value of Dogecoin increasing. The number of coins that are introduced yearly is still smaller than the number of coins that are in circulation.
- Dogecoin's block verification is a minute, ten times faster than Bitcoin's 10 minutes to verification.
15 Well-known companies that allow for uses to use DOGE as a method of payment for goods include:
- Dallas Mavericks
- Kessler Collection
- BOTS, Inc.
- Post Oak Motor Cars
- Energy Electronics
- Estate Diamond Jewellery
3. It can be exchanged for other cryptos.
Several large cryptocurrency exchange trading platforms allow for DOGE to be exchanged/traded either for fiat/paper money or for other cryptocurrencies at competitive rates.
Multiple exchanges allow for speculative and leveraged trading of crypto assets, allowing users to profit from the differences between prices.
4. It can be traded through brokers.
Brokers are offering a great variety of cryptocurrencies that can be traded as contracts for difference (CFDs). This means that traders do not own the physical coin but that they can speculate on the price movements of the underlying asset to earn a profit.
What are the criticisms against Dogecoin?
While Dogecoin is widely popular amongst many influential figures, traders, investors, and retailers, there are many criticism and controversies involved with Dogecoin that cannot be ignored.
- Dogecoin was initially created as a joke in 2013. This is one of the main things that stands in the way of the coin being taken seriously by the mainstream media as well as financial experts.
- Dogecoin has a long history with several problems and scams.
- Alex Green started a cryptocurrency exchange in the United Kingdom, Moolah, intending to handle Dogecoin and other cryptocurrencies. Green tipped thousands of dollars and started selling shares in Moolah on Reddit. His methods were questioned, and Green threatened to sue the founders of Dogecoin for harassment. Moolah subsequently shut down in 2014, and he disappeared with the money he had obtained from investors.
- In addition to this, Dogecoin has been part of several different pumps and dump events.
- Dogecoin is extremely susceptible to the whims of influential people such as Elon Musk, who had the power to make Bitcoin's value drop significantly after a comment about the impact of Bitcoin mining on the environment.
- Dogecoin does not have a supply cap but has a stable, deterministic inflation rate of 10,000 coins per block, with a block time of a minute.
- Jackson Palmer, Co-Founder of Dogecoin, exited the project in 2015 because of the toxic community that had evolved around the coin and the money that it was producing, which was against the initial purpose of the project.
- Several Dogecoin wallets have been hacked, funds were stolen over the years, and some were native Dogecoin wallets. In 2013, a Dogecoin wallet was hacked, and $12,000 worth of DOGE was stolen. The year after, $750,000 was lost in DOGE fraud.
- The interest in Dogecoin will only last if there is interest in the meme. Once this trend ends, Dogecoin could plummet, making it an extremely risky investment.
- According to experts, the price of DOGE could increase, but as soon as people start selling their coins, the price will plummet, and not everyone will get their money's worth from such a sale as the price continues to decrease.
- Close to 70% of the total circulating supply of DOGE is kept in just 100 wallets, which means that Elon Musk is not the only person that may have a significant impact on the price of Dogecoin. There is one person who owns 28% of all Dogecoin in existence, and this person is not known.
What is the biggest competitor of Dogecoin?
The biggest competitor of Dogecoin is Shiba Inu.
This may sound like the same thing, but it is not. Dogecoin (DOGE) and Shiba Inu (SHIB) are two completely different meme currencies.
The areas for comparison between DOGE and SHIB are as follows:
- Price Stability
- Retail interest
- Coin Issuance
- Market Cap
- Which is the best?
Dogecoin was created as a joke, and it received this treatment for years after its launch. However, despite its initial purpose, it managed to build a community that focussed on two primary things, the ability of DOGE to remain relevant long-term and the fact that it is one of the cheapest coins on the market.
This makes DOGE extremely speculative and retail-oriented, and the Dogecoin community has steadily grown through the years because of the influence of persons of interest, such as Elon Musk.
Shiba Inu was created anonymously in 2020 under the pseudonym “Ryoshi,” and it saw a significant amount of growth that landed it in the top 25 alternative coins.
Shiba Inu was discovered when retail and Twitter lurkers discovered it as the perfect opportunity to make profits.
Dogecoin has a massive high-profile group of supporters, and there is a lot of uncertainty whether this is for real or whether it is a joke. Some of the most popular supporters of Dogecoin are Elon Musk, the founder of SpaceX and Tesla. Elon Musk has been actively promoting Dogecoin on several different platforms, which has resulted in many other influential people backing the project.
Shiba Inu does not feature esteemed supporters that could help to influence its price direction positive. However, half of SHIB's tokens were transferred to Vitalik Buterin, who drafted a letter about SHIB investors before a large portion was donated to charity.
This announcement caused a bullish market for SHIB, and the trend has not yet ended.
3. Price Stability
Both DOGE and SHIB are volatile, and their prices fluctuate drastically, but DOGE is more unstable than SHIB.
- DOGE's price has increased by over 7,300% in a year to date. In the past three months, the price has increased by 26%, and in the last month, it has increased by 9.09% after it dropped to $0.19 at the end of October.
- SHIB's price only started trending at the end of March at $0.0000001, and it has skyrocketed with more than 27,900% to a price of $0.000024. Over the past three months and a month, SHIB's price has experienced a significant amount more stability.
4. Retail interest
Both DOGE and SHIB have an equal amount of retail interest with new investors who are not focused on either the history or the strength of the coins, but they are more concerned about the price, growth potential, and availability of these coins on exchange trading platforms.
Dogecoin was initially created as a joke, while Shiba Inu was developed to support a community that felt like it was left out in addition to being used towards charitable causes.
6. Coin Issuance
Dogecoin creates 10,000 new coins per block that are mined every minute. This increases the overall supply by 14,000,000 per day. This results in repetitive coin pumps that are unsustainable.
However, Shiba Inu does not use a PoW consensus mechanism to mint new coins and uses a Proof-of-Stake, which means that SHIB is not a mining-based coin.
Shiba Inu does not issue more coins than the ones that are in the market because, at launch, all coins were already pre-mined. Vitalik Buterin donated 50% of the total supply of SHIB that he had received from developers, which left 394 trillion SHIB tokens in the market.
Because Shiba Inu has a limited supply and it is deflationary, it makes the coin a better store of value for investors than Dogecoin which has an unlimited supply.
Dogecoin uses a Scrypt PoW consensus mechanism to verify transactions, relying on mining to mint and release new DOGE into circulation. While the Scrypt PoW mechanism is more eco-friendly than the SHA-256 PoW that Bitcoin uses, it still requires computational power.
Shiba Inu uses a PoS consensus mechanism which means that SHIB holders with the highest stake can add the next block to the blockchain.
8. Market Cap
Dogecoin has a market cap of more than $32 billion, while Shiba Inu has a market cap of more than $11.1 billion.
9. Which is the best?
Doge is better for people who want less risk while they invest in the altcoin market while they adjust their expectations. Dogecoin's large market cap and position make it an ideal option for investors who want smaller risks and smaller rewards.
Shiba Inu is a wild bet that has a plethora of short-term opportunities for investors and traders alike. Shiba Inu is known for offering a wide range of profit-making opportunities to those who are willing to face the risks involved.
Is Dogecoin better than Bitcoin?
No, Dogecoin is not better than Bitcoin.
There are some technologies and improvements on Bitcoin, but overall, Bitcoin is the reigning king of cryptocurrency and is expected to be that for years to come.
Bitcoin was created in 2009 by the pseudonymous Satoshi Nakamoto, while Dogecoin was created to be a joke to make fun of the hype that surrounded Bitcoin.
Dogecoin has a lot of redeeming qualities, especially considering that it is an open-source, peer-to-peer project with volunteering developers.
Both Dogecoin and Bitcoin use a Proof-of-Work consensus mechanism that makes use of Miners to verify transactions, add blocks to the chain, and ensure the security of the network.
However, Bitcoin's mining is dominated by highly specialized equipment such as ASIC mining rigs because of the increasingly difficult algorithms that must be solved for blocks to be added.
This means that there is a lot of computational power involved, which uses a significant amount of electricity. Something that Bitcoin has been harshly criticized for. Yet, despite this, Bitcoin is still the top cryptocurrency in the world.
Dogecoin uses a Scrypt PoW, which is immune to specialized equipment like ASICs and requires that users use their CPU and GPU to mine DOGE.
However, there is one critical flaw that Dogecoin has, and that is that there is a hard cap on Bitcoin of 21 million BTC, while Dogecoin has an unlimited supply.
Inflationary coins such as Dogecoin tend to lose supporters over time because the price will never really increase enough to make it worthwhile for investors.
One of the many reasons why Bitcoin is so popular is because it is scarce, and its supply is diminishing. Once the last Bitcoin is mined, there will not be any more coins produced.
When the demand for a coin is held at a constant, the price will decrease as the supply increases. If the supply of a coin such as Dogecoin inflates into infinity, the price must theoretically drop to zero.
Unless Dogecoin's code is rewritten to introduce scarcity, Dogecoin's popularity will inevitably wane as supply overwhelms demand.
Can Dogecoin and Bitcoin Coexist?
Yes, Dogecoin and Bitcoin can coexist.
Both Bitcoin and Dogecoin are used as currency, but Bitcoin is ahead of Dogecoin because it is more widely accepted as an alternative payment method.
In addition to this, Bitcoin is deflationary and therefore an ideal store of value. Dogecoin does not threaten Bitcoin, and vice versa.
However, Elon Musk has created a lot of turbulence between the two coins and even caused Bitcoin's value to plummet after he turned against it earlier in 2022.
Elon Musk stopped accepting Bitcoin as a payment for Tesla Car purchases, and when he was questioned, he simply expressed the environmental concerns surrounding Bitcoin mining and he also claimed that Bitcoin is no longer as decentralized as many would believe.
Simultaneously, Elon Musk also started boosting Dogecoin, and he also claimed that low transaction fees and high trading volumes must become the currency of Earth.
How does Dogecoin make revenue?
Many blockchain companies make money in different ways, including the following:
- Developing software solutions that serve a specific use case
- By providing a software service
- Earning through transaction fees
- Contractual Agreements
- Speculation on cryptocurrencies
1. Developing software solutions that serve a specific use case
Large corporations develop software that can be used by different clients for different uses, such as for cross-border payments.
This helps businesses settle transactions transparently and effectively.
2. By providing a software service
Blockchain companies also earn money when they develop software services that can be used by a range of businesses, such as APIs, cloud storage, data management software, and several others.
3. Earning through transaction fees
Most blockchain projects make money through transaction fees when businesses pay a subscription fee and transaction fee to developers.
These businesses pay for making transactions and for service delivery. This is a way through which Dogecoin makes money.
4. Contractual Agreements
There are blockchain developers that go into partnerships with other companies to offer blockchain infrastructure when they design and develop a wide range of applications.
How long does it take to mine Dogecoin?
It would take a miner 0.002 days to mine 1 Dogecoin.
This is according to the current Dogecoin difficulty level, and it also includes the hash rate and the current block reward.
Therefore, at a mining hash rate of 9,500.00 MH/s and a block reward of 10,000 Doge, a miner will take 0.002 days to mine a single Dogecoin.
The following cryptocurrencies have different mining times, including:
- Bitcoin – with a hash rate of 110.00 TH/s, 0.00072799 Bitcoin can be mined per day.
- Dash – depending on the mining inputs, 0.01893066 Dash can be mined per day with a hash rate of 65,000.00 MH/s.
- Litecoin – With a mining hash rate of 9,500.00 MH/s, 0.22498243 Litecoin can be mined per day.
The blockchain network of Dogecoin uses the same system to add new blocks that Litecoin, Ethereum, and Bitcoin currently use. This system adds blocks to the ledger, and they reach agreement among all nodes in the network, also known as a Proof-of-Work mechanism.
The PoW consensus mechanism involves mining, where either individuals or groups can compete for the chance to add the next block of pending transactions to the blockchain.
These miners use specialized computer equipment to create along with code or “hash” that has a value that is either equal to or lower than the target value of the new block.
The node that successfully creates the winning code will earn the exclusive right to add the new transaction to a block on the chain, and they also receive the 10,000 DOGE mining reward for doing so.
Every hash is random, which means that it is a process entirely dependent on trial and error. As a typical rule of thumb, blockchains such as Litecoin and Bitcoin have a total supply of coins that must be mined so that they can be released into circulation.
There is a limited supply, which means that once the very last coin has been mined, there will never be any other coins created.
Dogecoin differs from this because there is no maximum cap or limited supply. This means that the more DOGE is mined, the more the supply of DOGE will increase.
The block time of Dogecoin is one minute, which means that a new block is added to the blockchain each minute.
Bitcoin uses an SHA-256 algorithm for hashing, which is a function that generates a code of a certain length using a specific technique. This differs from both Litecoin and Dogecoin because they use “merged mining” through Scrypt.
This means that both LTC and DOGE can be mined without the operational efficiency being affected. Dogecoin shares an algorithm with Litecoin because its design is based on Luckycoin, which was derived from Litecoin.
Dogecoin mining was easy after its launch because there were only a few participants in the network. This made it easier for participants to mine individually without relying on mining pools.
However, Dogecoin's popularity increased over time, and the mining process increased, which led Dogecoin miners to start forming mining pools.
Miners who want to mine DOGE can do so with a decent computer using a GPU through software or a decent CPU.
Does Dogecoin have Smart Contracts?
No, Dogecoin does not have Smart Contracts.
A smart contract can simply be defined as a program that runs on a certain platform and ecosystem, such as Ethereum, Cardano, Solana, and others.
Smart contracts are not controlled by the user. They are deployed to the network and subsequently run as they were programmed.
Smart contracts can define certain rules, like any typical contract, and these rules are automatically enforced through the code. Smart contracts cannot be deleted, and the interactions with them are irreversible.
In terms of necessity, smart contracts are important because they help to solve the issue associated with mistrust between different parties as well as business partners.
Smart contracts have several advantages for many industries, and they can reduce unnecessary costs as well as time expenditure while simultaneously enhancing transparency.
Smart Contracts have a wide range of uses across industries and sectors, including:
- Supply Chain Management
- Protection of Copyright content
- Digital Identity
- Financial Data Recording
- Mortgage contracts
Because smart contracts are used between parties and handled as well as executed by a computerised protocol, there are several reasons why people are using blockchain projects that run these.
Dogecoin developers have already stated that the blockchain project will not be developed to become compatible with smart contracts.
While this would be beneficial to Dogecoin's ecosystem, this is not what Dogecoin set out to do when it was launched.
However, because of the Ren Project, Dogecoin can still operate on Ethereum because DOGE can be wrapped to become renDOGE, an ERC-20 token. This means that DOGE could interact indirectly with smart contracts, DApps, and a wide range of DeFi projects.
Can Dogecoin reach $100k?
No, Dogecoin will never reach $100,000.
The price of a cryptocurrency coin is determined by the supply and demand of a coin.
If a coin, such as Bitcoin, has a fixed supply, the demand for the coin will increase over time as the supply wanes.
However, Dogecoin does not have a fixed supply, and therefore the supply will always surpass the demand.
In addition, increases in the price of Dogecoin are driven by influential people like Elon Musk, which means that there is a hype that surrounds currencies such as Dogecoin, and this hype is not sustainable long-term.
To keep Dogecoin's network secure and operational, the incentive that miners are paid for verifying transactions is 5 billion DOGE per year. By the end of 2030, Dogecoin will have 180 billion DOGE in circulation.
If Dogecoin reaches a $1 price per coin, Dogecoin's market capitalisation will be $180 billion, which is not that high when considering Ethereum and Bitcoin.
There are currently 18.8 million Bitcoins that are in circulation, and Bitcoin has a market capitalisation of over a trillion US dollars.
While a $1 price is completely possible for Dogecoin, even just $100 is unachievable, let alone $100,000.
This can further be explained by examining the following explanation:
The United States has a Gross Domestic Product (GDP) of 20.94 Trill USD, while China has a GDP of 14.72 trillion USD.
These are the two largest nations in the world, and if the GDP of all the countries in the world were added together, it would give you a total of 84.54 trillion USD for the 2020 full year.
For every dollar that Dogecoin's price increases, the market capitalization must increase by $180 billion.
Therefore, for each $100 per Dogecoin, the total market cap of Dogecoin would exceed $18 trillion, which is higher than the economy of China and nearly as much as the United Economy, which is not possible, and because of Dogecoin's lack of a coin cap, this would just increase infinitely.
Can Dogecoin be used as currency?
Yes, Dogecoin can be used as currency to pay for purchases at online stores where it is accepted.
15 Well-known companies that allow for uses to use DOGE as a method of payment for goods include:
- Dallas Mavericks
- Kessler Collection
- BOTS, Inc.
- Post Oak Motor Cars
- Energy Electronics
- Estate Diamond Jewellery
Can Dogecoin be tracked?
Dogecoin is open-source, and the blockchain is public, which means that transactions on the blockchain can be viewed by anyone.
The Dogecoin blockchain information is available from several reliable sources, including the official Dogecoin website that displays the latest blocks.
The information that is displayed includes:
- The block number
- The time that the block was added
- The number of transactions in the block
- The miner that verified the block
- The hash difficulty at which the hash was solved.
The hash of individual transactions can be accessed to view different information such as:
- The unique hash
- The number of inputs
- The DOGE in
- Number of outputs
- The total DOGE out
- The size of the transaction
- The transaction fee
- The confirmations
- The status of the transaction
The inputs provide information on the index number, the previous output which is selected to a previous transaction, and it also shows the address from where the funds came.
When viewing the address where the funds came from, users can see the following:
- The balance of the account
- The number of transactions received to this address
- How much has been received and sent to/from the address
- The number of transactions sent
Further down on the page, users can see all the transactions of the address in detail, and there is also an option to send Dogecoin to the address by using a QR Code.
Can Dogecoin be hacked?
No, Dogecoin cannot be hacked directly.
The decentralization and cryptographic nature that blockchain projects are known for makes it hard to hack them, but not entirely impossible.
While Dogecoin's proprietary blockchain is secure, wallets are not immune to hacking.
In 2013, there was $12,000 worth of DOGE (21 million coins) stolen from a native Dogecoin wallet. The next year, DOGE investors lost $750,000 in a massive fraud event.
Can Dogecoin make you rich?
No, Dogecoin will not make you rich.
Dogecoin has a loyal following on social media, and it has the support of investors such as Elon Musk, but because of the inflationary nature of Dogecoin, where supply will always surpass demand, it will not make you rich.
Investors can make a generous return on investment when their investment appreciates, especially if it appreciates in the way that Bitcoin and other cryptocurrencies have.
If you invested $100 in Bitcoin when it was launched in 2009, at $0.0008, you could have bought 125,000 BTC. Bitcoin's price reached an all-time high on October 20 at $66,974.77, and your investment would have been worth billions.
Some investors have become millionaires by investing in Dogecoin, such as:
- Glauber Contessoto – who invested more than $250,000 in Dogecoin in February when DOGE was $0.45 and whose holdings surpassed a value of $1 million.
Is it worth buying Dogecoin?
No, it is not worth buying Dogecoin because of the risks involved.
However, some investors are willing to take the risks that are involved with a highly speculative and highly volatile cryptocurrency.
Dogecoin can experience explosive returns, but it is one of the riskiest investments, and many other options have fewer risks.
Dogecoin's value has been on a rollercoaster in the past year, with its price seeing an increase of more than 5,000% since the beginning of 2022, and after the recent downturn, the price is increasing yet again.
Dogecoin is a very tempting investment because of these bursts where the price increases and investors are hanging onto the belief that Dogecoin will be worth $1 before the end of the year.
The issue with high-reward investments is the risks that it involves because investors must pump a lot of capital to see a fraction of return on investments such as Dogecoin, and the chances are 50/50 that the coin may depreciate rapidly.
The massive gains that Dogecoin experiences sporadically are attributed to its supporters, such as Elon Musk, and it's a loyal community of followers.
The more people buy DOGE, the higher the price climbs. However, the supply of Dogecoin always surpasses the demand because of its unlimited cap and the reward amount for every block mined.
Dogecoin might be gaining steam in the cryptocurrency market, but it does not have a very strong competitive advantage. Cryptocurrency, in general, is extremely speculative, and people have just begun to trust Bitcoin and Ethereum, and Dogecoin is still not being taken seriously by large players in the market.
You can make money with Dogecoin, but it is difficult. Dogecoin's millionaire Glauber Contessoto invested $250,000 (which is a hefty sum) in Dogecoin in February when he bought the dip, and he made over $1 million back, which is not a lot when compared to the return on investment of Bitcoin, Ethereum or other stores of value.
In terms of price stability, Dogecoin is not known for its lack of volatility, and the coin sees rapid and drastic surges in its price in split seconds.
Dogecoin can be profitable, but it is also extremely risky, and this questions its overall profitability and whether it is worth the risk or whether investors should consider safer options.
In addition to this, Dogecoin's appreciation relies heavily on its supporters, loyal community, and the voice of influencers such as Elon Musk. If the hype that surrounds Dogecoin dies down, its price will rapidly decline.
Is Dogecoin a good investment?
Dogecoin is a good short-term option for speculative trading because of the high volatility of the coin. Its price can fluctuate rapidly and drastically, making it the perfect asset for day traders and scalpers.
Dogecoin is not a store of value like Bitcoin because it is inflationary by default, which does not make it a good long-term investment. In addition to this, there is a lot of hype that drives the price of Dogecoin, and it is extremely susceptible to the whims of its supporters and community.
Is Dogecoin Legit?
Dogecoin is legitimate.
According to “isthiscoinascam,” Dogecoin has a project safety score of 8.77/10, which is very good because its rating is “Strong.” Dogecoin's rating has the following metrics:
- Development – 6.5/10
- Sentiment – 8.1/10
- Community – 10/10
- Awareness – 6.3/10
- Credibility – 8/10
- Volume – 10/10
Dogecoin is a 1st Generation blockchain that is based on the technology of Luckycoin, which was derived from Litecoin. The whitepaper of Dogecoin is available, but its developing team is not known because many volunteers work on the project.
The keywords used to characterize Dogecoin include:
- Medium of Exchange
- Binance Smart Chain
- Meme Tokens
- Doggone Doggorel
The keywords under its technology relate to PoW, Scrypt, and Proof of Work, while its features are tagged under mineable.
Several exchanges have Dogecoin listed, including the following:
- Huobi Global
- Bitcoin.com Exchange
- Binance US
There are several different Dogecoin explorers, including ViaBTC, TokenView, Dogechain, BSC Scan, and Blockchain.
Is Dogecoin Supply limited?
No, Dogecoin's supply is not limited.
Dogecoin does not have a maximum supply, and there is currently a circulating supply of 131,814,392,665 DOGE coins.
In terms of other cryptocurrencies, the following cryptos also have limited supplies:
- Bitcoin (BTC) – 21,000,000 BTC
- Cardano (ADA) – 45,000,000,000 ADA
- Binance Coin (BNB) – 168,137,036 BNB
The unlimited supply of Dogecoin is built into its code, making it inflationary, and it means that there is DOGE minted daily, giving it a potentially infinite supply.
The effects of this can be negative over time because it means that supply will always be higher than demand. It also means that there is no scarcity linked to Dogecoin like there is to Bitcoin, which has a cap of 21 million BTC.
Scarce things are inherently more valuable because demand is higher than supply.
Dogecoin's popularity is attributed to the fact that there is no maximum supply, but it is more relating to the hype behind Dogecoin and the credibility that influencers such as Elon Musk give to it that makes it popular.
Does Dogecoin have a fixed supply?
No, Dogecoin does not have a fixed supply.
- Fixed or maximum supply can be defined as the total number of coins that can ever be in circulation.
- Total Supply refers to the number of coins that have been mined, including the missing coins that are no longer in circulation or that have been lost.
- Circulating supply refers to the total number of coins that are in circulation.
Dogecoin has an unlimited supply, making it an inflationary coin. The price of cryptocurrencies is determined by supply and demand.
Because the supply of Dogecoin is higher than its demand, the price will always stay extremely lower than other coins such as Bitcoin. Bitcoin's supply is limited, and the demand for it is increasing. Thus the price will increase steadily.
Is Dogecoin best Altcoin?
Dogecoin is a good alternative coin, ranked #9 out of over 12,000 other alternative coins, but it is not the best altcoin.
Dogecoin is a good altcoin in terms of the following components:
- Transparency – All transactions on the Dogecoin blockchain can be viewed easily by anyone, with all information relating to every single transaction that is ever carried out on the network.
- Security – There are high volumes of transactions processed on the Dogecoin network, which means that the more blocks are added, the more secure the network becomes.
- Hacking – Dogecoin has never experienced a hacking attempt to its actual blockchain, but there have been wallets that experienced hacking.
- Technology – Dogecoin uses a Scrypt Proof of Work for mining which is more eco-friendly than the conventional POW and requires less computational power.
- Transactions – Dogecoin can process a significant number of transactions in a minute, even though it is not the fastest.
But Dogecoin is not a good altcoin in terms of:
- Trackability – Dogecoin has a public blockchain which means that all transactions and all aspects of them can be viewed and traced. There is no anonymity or privacy.
- Price Change – Dogecoin is extremely volatile, and prices fluctuate rapidly and drastically.
- Investing Potential – Dogecoin is not a good store of value and not a good long-term investment option, especially if the hype that surrounds it can be influenced easily or it can end suddenly.
Any cryptocurrency that isn't Bitcoin is referred to as an altcoin.
What are the differences between Dogecoin and Bitcoin?
Bitcoin is the original cryptocurrency in the world that has the largest market cap of all cryptocurrencies. In October, Bitcoin finally hit a new all-time high of over $66,000, and there are more countries worldwide that are accepting Bitcoin as an official tender.
Bitcoin is the most credible cryptocurrency in the world, and it follows the same standard as the conventional gold standard that was followed in previous years.
There is a limited supply of 21 million BTC, and when the value of the dollar was pegged to gold resources, it followed the same principles.
Bitcoin and other cryptocurrencies are a hedge against inflation and centralized government currencies, giving investors a haven and the perfect alternative.
Supply is but one difference between Dogecoin and Bitcoin, with Dogecoin that has an unlimited supply and no cap, which makes Dogecoin extremely inflationary, especially because it is not anchored to anything.
Bitcoin and Dogecoin both use blockchain technology that features a decentralized ledger where every transaction is recorded, including all the information on the transaction.
Bitcoin uses the conventional Proof-of-Work, which requires highly specialized mining rigs, called ASICs, to correctly solve complex algorithms to award the miner with the exclusive right of adding a new block to the chain and bagging the rewards for doing so.
Dogecoin is also mining-based, but it employs Scrypt technology to make the mining eco-friendlier and more user-friendly, with miners able to verify block with a decent CPU or GPU.
Bitcoin mining has been criticized harshly for the detrimental effect that it has on the environment, one of the reasons why Elon Musk promotes Dogecoin over Bitcoin.
Dogecoin is a highly speculative asset that is better for short-term investing and trading, while Bitcoin is better as a store of value and a long-term investment.
|Price change 20/21||+$400%||+7,300%|
|Market Cap||$1 Trillion+||$32 Billion+|
|Popularity||Very High||Very High|
|Altcoin Rank||#1 – Original Crypto||#9|
What is the difference between Dogecoin and Ethereum?
Ethereum is the second-largest cryptocurrency right after Bitcoin, attributable to the unique and powerful technology and potential that it has for real-world applications.
Ethereum is well-known as the global computing platform where developers can build decentralized applications (DApps) in finance, insurance, supply management, and many others.
While both ETH and DOGE are digital currencies that can be used to make payments, the selling point of Dogecoin is the main weakness of Ethereum, the transaction fees.
Dogecoin has some of the lowest transaction fees, and a transaction on Dogecoin will also process faster. However, Ethereum allows for smart contracts to be executed. The blockchain is more decentralized and secure than Dogecoin.
Ethereum is also the most actively developed project between the two, while Dogecoin's development team is in the background, without any plans for further updates.
Therefore, Ethereum is the best for the running of Smart Contracts, the development of DApps, and more, while Dogecoin is best for tipping content creators on platforms such as Reddit and Twitch.
|Price change 20/21||+880%||+7,300%|
|Market Cap||$480 Billion+||$32 Billion+|
|Popularity||Very High||Very High|
What is the difference between Dogecoin and Cortex?
Cortex is an open-source and peer-to-peer decentralized blockchain platform that supports a wide range of different Artificial Intelligence models.
These models are uploaded and distributed on the Cortex network, where they can be used across different smart contracts that will subsequently create AI-compatible DApps.
The technology of Cortex is vastly different from that of Dogecoin, and Cortex is not intended for use as a currency, but it is a project that is involved in further developments, especially in the way that AI-driven technologies can be applied in real-world applications.
Dogecoin is better suited to being used as a currency for some payments and as a tipping currency on some platforms.
|Price change 20/21||+170%||+7,300%|
|Market Cap||$42 Million+||$32 Billion+|
What is the difference between Dogecoin and NEO?
NEO is well-known as a cryptocurrency ecosystem that is experiencing rapid growth and development. NEO aims to become a solid foundation for the next generation of the Internet.
This new economy aims to be a perfect platform where digitized payments, identities, and assets can be combined harmoniously.
NEO was designed to be the first public blockchain in Chine, and it has a global community of developers that created new infrastructure as well as significantly lower entry barriers.
NEO is used in the same way as Ethereum, where developers can create and launch different DApps, and where smart contracts can be run.
Therefore, NEO's native token is better being used to fuel the ecosystem and to pay for transaction fees on the network, while Dogecoin serves as an actual currency that can be used as an alternative payment option and a store of value.
|Price change 20/21||+160%||+7,300%|
|Market Cap||$3.1 Billion+||$32 Billion+|
What is the difference between Dogecoin and NFT?
Nonfungible tokens (NFTs) are digital assets that each have a unique value, with no two NFTs holding the same characteristics or value as another. Dogecoin, on the other hand, is fungible, which means that one DOGE has the same value and characteristics as another DOGE.
Dogecoin is used as a currency on different social media platforms such as Reddit and Twitch to tip content creators. The market cap for DOGE is over $32 billion, while the NFT market is expected to rise to over $1 billion by the end of 2022.
NFTs consist of any digital collectibles such as art, games, video clips, and many other tokens that often sell for millions at auctions.
What is the difference between Dogecoin and Cardano?
Cardano is one of the most sophisticated blockchain projects on the market. Cardano is peer-reviewed, and it is a multi-layer smart platform that supports different smart contracts, DApps, and a wide range of DeFi applications.
Dogecoin, on the other hand, is a single cryptocurrency that is mostly driven by its community and influencers instead of by technical components that will ensure continued growth.
Dogecoin has seen various drastic price runs because of its Reddit supporters, while Cardano is one of the only blockchain-based projects that can rival Ethereum, despite many others in the game, such as NEO and Solana.
Cardano is the first peer-reviewed cryptocurrency, and it is a third-generation blockchain that can support a wide range of projects, from the creation of NFTs to DApps, and more.
Since its launch in 2015, Cardano has made excellent progress, and it is one of the top alternative coin projects in the cryptocurrency market, ranking fourth on the altcoin market of 12,000+ coins.
Dogecoin has a solid architecture despite it being created as a joke, with its technology based on the solid fundamentals on which Litecoin was built.
Cardano can process 257 transactions per second, while Dogecoin can only process 70 a second. Cardano has seen a significant number of upgrades, with the most recent being the Hydra layer.
This not only brings about improved scalability of the blockchain, but it also guarantees more transactions per second, with the outlook that Cardano will one day be able to process up to a million transactions per second.
Dogecoin may not have the impressive speed of Cardano or the potential for more, but Dogecoin still has a faster transaction speed than Bitcoin.
Therefore, Dogecoin is best used as a currency that can pay for certain products, while Cardano, along with other blockchains, can do the heavy lifting in supporting DApps, smart contracts, and DeFi.
|Price change 20/21||+2,100%||+7,300%|
|Market Cap||$73.7 Billion+||$32 Billion+|
|Popularity||Very High||Very High|
What is the difference between Dogecoin and Shiba Inu?
The hype that surrounds Dogecoin is still in effect, and several competitors have emerged to ride this trend.
Shiba Inu is also well-known as the “Dogecoin Killer,” and this crypto was created more than a year ago by a pseudonymous person known as “Ryoshi.”
Shiba Inu was created on the Ethereum blockchain, and it is an ERC-20 token that was named after the same Japanese dog breed that adorns Dogecoin's token.
Shiba Inu has been extremely popular amongst Chinese traders who have helped boost the coin's value significantly. Shiba Inu is not much different from Dogecoin, where its utility and underlying value are concerned. It is like Dogecoin in that it can only be used as a token of transfer.
The founder of Shiba Inu gave Vitalik Buterin, the founder of Ethereum, half the initial supply of SHIB, followed by Buterin donating 50 million SHIB to the India Covid-19 relief fund, which significantly boosted Shiba Inu's reputation but caused the price on SHIB to plummet.
Dogecoin does not have a limited supply, while Shiba Inu has a maximum token supply of 1 quadrillion SHIB coins. Half of these coins were held by Vitalik Buterin, and he recently burnt 90% of these tokens, which is 410 trillion SHIB (worth $6.7 billion).
The removal of these coins from circulation decreased the supply automatically and boosted the demand, starting another bullish run for Shiba Inu.
There is no way to know whether Shiba Inu could realistically overtake Dogecoin in the future, especially when considering that Shiba Inu is not even halfway to the market capitalization that Dogecoin has.
Both Dogecoin and Shiba Inu have a lot of potential, and they can both be used as alternative payment methods for products and services. They are also both highly speculative, and they have truly little fundamental value, with the weight of their communities holding them up in a competitive, cutthroat market.
|Price change 20/21||27,900%||+7,300%|
|Market Cap||$12.8 Billion+||$33 Billion+|
What is the best platform to buy Dogecoin?
The best platforms where Dogecoin can be bought are:
Kraken is a large, popular United States-based Cryptocurrency exchange changing platform that offers the trade-in Dogecoin, Ripple, Ethereum, and many other crypto coins.
|Sophisticated mobile trading app||Unregulated platform|
|Traders have advanced educational sources||Limited non-crypto assets|
|24/7 customer support|
|A wide range of coins offered|
eToro is the leading online social trading platform and a well-regulated broker in the industry that offers many trading opportunities in traditional and cryptocurrency markets.
eToro is a multi-asset platform that is user-friendly, intuitive, and offers many analytical tools that will help traders of all experience levels trade, invest, and explore financial markets.
|Commission-free trading||Inactivity fees are charged|
|CopyPortfolios offered||Does not accept US clients|
|Popular Investor club||Live chat support is not available|
|Large online trading community||Scalping and hedging is not allowed|
|eToro club membership offered|
|Well-regulated and safe|
|Offers a decent range of crypto assets|
Gemini is a popular cryptocurrency exchange trading platform that offers a choice between different trading technologies, a range of coins that can be traded, and access to a stable coin, the Gemini Dollar.
Traders who use Gemini can also access useful trading tools as well as a range of helpful educational sources and materials.
|Well-regulated platform||Limited funding options|
|First SOC 1 Type 1 and SOC 2 Type 1 and 2 certified exchange and custodian|
|There is an Advanced mobile trading app provided|
|Range of coins supported|
Binance is one of the largest, most trusted cryptocurrency exchange trading platforms where traders can exchange cryptocurrencies with low charges.
Binance supports more than 150 cryptocurrencies that can be traded and exchanged. Binance's platforms are fast, innovative and they can be used across devices including the web, mobile, and desktops.
|More than 150 crypto coins supported||Unregulated|
|Powerful, flexible trading platforms offered||Telephonic support not given|
|24/7 multilingual customer support offered||US clients are not accepted|
|Training academy provided|
|Cryptos can be bought with credit cards|
Coinbase is a leading digital currency wallet as well as a powerful trading platform where merchants and customers can exchange digital coins.
Coinbase provides a user-friendly trading platform and a wide range of educational materials that can help beginners start their crypto trading journey easily.
|Useful trading tools provided||Demo accounts are not provided|
|Educational materials offered|
|Low minimum deposit required|
|Trading platforms are user-friendly|
|Wide range of coins that are offered|
You can buy DOGECOIN safely from these cryptocurrency platforms.
Is Dogecoin a Stablecoin?
No, Dogecoin is not a stablecoin.
A stablecoin can simply be defined as a cryptocurrency that offers increased price stability by pegging its market value to another source, such as gold or the US dollar.
Stablecoins serve as a bridge between the cryptocurrency world and paper or fiat currencies. By using the flexibility that digital currencies offer in combination with the stability of traditional assets, users can benefit from the security, instant transaction settlements, and more.
Stablecoins can be divided into three main categories, namely:
- Fiat-collateralised stablecoins – these stablecoins are the most common type. They are backed by major currencies such as the Euro, GBP, or the United States Dollar. Stablecoins that are fiat-collateralised are pegged to a currency in a ratio of 1:1, where one stablecoin is equal to one unit of the currency to which they are pegged, for example, Tether, USDC, and others.
- Commodity-based stablecoins – these are backed by other kinds of assets such as precious metals, especially gold, oil, real estate, and other forms of commodities, for example, Digix Gold (DGX), which is backed against physical gold.
- Crypto-collateralised stablecoins are backed by other cryptocurrencies. These stablecoins are more decentralized and tend to be over-collateralised, allowing them to absorb collateral more effectively.
Even when Dogecoin reaches a $1 price, it will not be considered as a stablecoin unless its code is specifically rewritten to peg its value to the USD at a 1:1 ratio.