Two software engineers founded Dogecoin in 2013. They created it as a joke, but it became popular in 2021. It has become one of the five largest cryptocurrencies by market capitalization. If you are interested in investing in Dogecoin, it is better to fully understand it. Here we will talk about some of the essential features of this cryptocurrency, how to mine it, and everything you need to know about investing?
Dogecoin was a joke that made so many investors billionaires. Everything a coin needs to grow is people’s trust and belief when it comes to cryptocurrency.
What Is Dogecoin?
Billy Markus and Jackson Palmer developed Dogecoin in 2013 as an open-source, peer-to-peer cryptocurrency. Like any other cryptocurrency, Dogecoin operates on blockchain technology. The image of a Shiba Inu dog is the logo of this cryptocurrency.
The founder used the underlying technology of Litecoin to create this cryptocurrency. One of the most notable features of Dogecoin is that it uses a script algorithm that provides a low price and unlimited supply.
Existed for many years in the Shadows since 2013, but from 2015 to 2020, something big happened for Dogecoin. The increase in retail investment during the pandemic and Elon Musk’s Twitter resulted in the rise in popularity of Dogecoin. The price of Dogecoin with a 15700 percent increase reached 74 cents.
How Does Dogecoin Work?
As we have said earlier, Dogecoin runs on blockchain technology like any other cryptocurrency. And we all know what a blockchain is; it is a decentralized, digital ledger for storing all transactions made using a decentralized digital currency.
The Dogecoin blockchain is constantly updated with all new transactions.
Understanding The Special Features of Dogecoin
Some characteristics make Dogecoin different from other cryptocurrencies. The first and foremost difference between Dogecoin and other cryptocurrencies is that no definite number of Dogecoin can be mined.
The other difference between Dogecoin and other cryptocurrencies is how it is mined. We will talk about this process later but suffice to say that you can mine Dogecoin faster than other cryptocurrencies.
You can buy this cryptocurrency on exchanges like Bitunivex. Just like any other cryptocurrency, you need a wallet to store Dogecoin. You can find the best wallet to store your cryptocurrency on Bitunivex. If you are thinking about investing in this cryptocurrency, you should consider that miners earn millions of Dogecoin for participating in the network. So this coin is highly inflationary.
How to Mine Dogecoin?
You can mine Dogecoin individually or by participating in a pool and solving mathematical and algebra formulas to mine new Dogecoins. While the mining of Dogecoin is much easier than other coins, you still need expensive equipment to mine this cryptocurrency. But the mining process is unique. You need to use the scripting technology to mine this coin, and surprisingly this form of mining is much faster than other forms of mining.
Miners get something about 10000 Dogecoins for mining a new block. While for Bitcoin, you will get one Bitcoin for successful mining. Later we will talk about the differences between Bitcoin and Dogecoin.
What Is The Difference Between Dogecoin and Bitcoin?
Dogecoin is different than Bitcoin in many aspects. It takes less time to mine Dogecoin than Bitcoin. The mathematical solution which Dogecoin’s miners need to solve is a lot easier than the problem the miners of bitcoin try to solve. Bitcoin’s miners mine a bitcoin in 10 minutes, while it takes one minute for Dogecoin to be mined.
The total supply of bitcoin is predetermined, but there is no limited supply for Dogecoin. So, Bitcoin miners need to work harder to earn new bitcoin sooner than others. This process guarantees the increase of Bitcoin’s value over time.