04/02/21

What is Dogecoin and Why Would You Buy it?

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Dogecoin (XDG) is now available on Xcoins! But why would you buy the famous canine-themed coin?
 
In 2009, Bitcoin (BTC), the world’s first cryptocurrency, set in motion the idea of decentralized finance. The idea quickly grew into an entire industry, which, according to data from CoinMarketCap, now hosts over 8,500 cryptocurrencies, with a combined market capitalization of over $2 trillion at press time. 
 
Each of these cryptocurrencies is backed by a team or community with its own proposition as to how the decentralized finance space should evolve. One of the most famous of these projects is the canine-themed cryptocurrency Dogecoin (XDG) AKA “Doge”. 
 
Having started life as a meme, Doge and its community grew to become the 9th most valuable cryptocurrency in the market, with a market capitalization of over $15 billion. The community even recently attracted the attention of the world’s richest man, Elon Musk who has been declared Doge’s honorary CEO.
 
Now Xcoins users can purchase the canine-themed cryptocurrency and become part of one of the market’s oldest projects. But before you go ahead and do so, here’s a little bit about cryptocurrency’s favorite “meme-coin”. 
 
What is Dogecoin? 
Dogecoin was originally created as a joke on December 6th, 2013 by software engineers Billy Markus and Jackson Palmer. The cryptocurrency was named after a popular internet meme that referred to the Japanese dog breed, Shiba Inu, as doge. 
 
Indeed, in reference to the dog breed and taking inspiration from Bitcoin’s pseudonymous founder Satoshi Nakamoto, Markus, as lead developer, was referred to as Shibetoshi Nakamoto.
 
Dogecoin’s blockchain was based on Litecoin’s proof-of-work algorithm, which was specified such that only the more complex ASIC devices could be used to mine Doge. Currently, 10,000 Doges are given to the miners who discover each block and there is just over 129 billion Doge in existence. 
 
Much fame, much wow
Currently, those 129 billion Doge are worth around $0.003 each, putting the canine-based cryptocurrency amongst the top ten most valuable cryptocurrencies. It reached an all-time high of $0.084 on February 8th, after gaining over 1000% in less than two weeks. 
 
The meteoric rally was the result of several efforts to popularize cryptocurrency’s resident meme-coin, starting with the efforts of Tesla’s Elon Musk. Last year, the eccentric billionaire began a Twitter campaign endorsing Doge, which included a number of memes and even a DOGE-themed Christmas message. 
 
The tweets had a powerful effect on the Doge price, even prompting an investigation by the Blockchain Research Lab into exactly how Musk’s tweets affect prices in the cryptocurrency market. 
 
The Shiba Inu-loving Doge community informally acknowledged the power of Musk in the Dogecoin world, prompting his honorary appointment, in absentia, as Dogecoin’s CEO. 
 
Moreover, following the GameStop “short-squeeze” event, the Redditors involved turned their attention to Doge, giving it more time in the limelight. Doge was actually one of the most traded cryptocurrencies in the space for several days. 
 
So, why would you buy it?
The question for Dogecoin has never so much been why, but “why not?”. 
 
However, encouraged by Doge’s newly found popularity and with its “CEO” now suggesting it might become one of the most used cryptocurrencies in the space (a far cry from the original intention when it was created), the wheels of progress have begun turning. 
 
Dogecoin’s core development team is on a mission to turn the canine-themed cryptocurrency into a platform for development in the DeFi space. Instead of simply copying Bitcoin’s upgrades line-for-line as has become a tradition for many lesser coins, the Doge team is proposing exciting new ways to improve its scalability issues. 
 
Furthermore, Dogeo, a Doge-inspired stablecoin, can now be minted by staking Doge, thanks to a partnership between OpenDAO and Ren. 
 
To a seasoned crypto-enthusiast, owning Doge has long been seen as a right of passage for becoming a true member of the cryptocurrency space.
 
As far as the future goes, these developments, in combination with its popularization, might give DOGE the push it needs to get serious and compete in the cryptocurrency space. 
 
Simply put, it’s an old Doge, with new tricks. 
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Updated on 04/02/21

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