What is Dogecoin?
Dogecoin is a relatively new Cryptocurrency designed by software developers Billy Markus and Jackson Palmer, that decided to develop a free, instant, fun, online payment method without the typical fees typically associated with other forms of currency. Dogecoin has the image of the Shiba Inu Dog from the popular “Doge” Meme as its mascot and logo. Its distinctive yellow/brown color is attributed to the original Shiba Inu breed. Dogecoin was created in early 2006 by Traceable Limited, which is an Australian company.
Dogecoin’s main attraction is the no-fuss, instant transaction process. Customers can load dogecoin onto digital debit or credit cards using popular web payment methods such as PayPal or WorldPay. Then they can use those same cards to instantly send dogecads (a unit of currency) to their friends and family. The idea is for individuals to get involved in a fun online activity and not worry about where their money is going next.
It is important to note that dogecoin has not been around long. Its origins date all the way back to October first, before the launch of Facebook. It was one of many alternative currencies developed by members of a community called the “cryptocoin forum”. These members included internet marketer Marcus Leary and an enterprising businessman named Travis Sago. They wanted to create a “deflationary” form of money because they felt it would reduce the power of governments and lead to a better economy overall.
One of the ways they came up with dogecoin was to introduce the concept of a mining algorithm. The algorithm was based on the technology behind the popular World Wide Web. In other words, dogecoin’s mining process happens through an Internet connection. So basically, instead of running computers and gathering physical gold from various countries all over the world, people gather dogecoin along the same network. That’s how dogecoin was born.
Since then dogecoin have gone through some major growth and changes. Dogecoin’s price has fluctuated greatly over the course of just a few months. Some analysts believe it is the product of inexperienced marketers who have decided to cash in on the trend. Others say it is the product of savvy investors who have taken advantage of the hype dogecoin is known for. Regardless of who is responsible for dogecoin’s recent rise and fall, the point is this: it has exploded onto the international scene and has become something of a joke among internet-savvy enthusiasts.
One reason dogecoin has taken off so well is because it has a lot in common with other successful currencies. For example, it shares a lot in common with Litecoin, which has been popular since its inception as well. Both of these currencies operate off of proof-of-work (PoW). PoW, also called Proof of Work, is the backbone of the entire cryptosystem. Without it, any system is useless and can’t function because no one can make any money.
Another thing dogecoin has in common with Litecoin is its use of the Twitter application to facilitate transactions. Many Litecoin traders and users have created Twitter accounts specifically for dogecoin use and the dogecoincards follow the popular social networking site. Due to dogecoincards flooding the market, many large online retailers like Overstock and Amazon have begun selling dogecoin as a form of virtual currency.
Dogecoin has really come a long way since its beginning as a joke on an internet forum. It has grown in popularity to the point that it now has a daily trade volume that is almost equal to the size of a major stock exchange like NYSE. Dogecoin trades are now free on many popular financial trading platforms due to the extensive work done by the dogecoin developers. If you are interested in learning how to trade dogecoin, there are several great guides available that will show you step-by-step everything you need to know.