What is Dogecoin?
Dogecoin is a digital currency, which is decentralized and very secure. The Dogecoin coin is used as a crypto currency primarily in the private sector, but also in some online shops. What clearly distinguishes Dogecoin Coin from other crypto currencies is its social purpose: on the websites “Reddit” and “Twitter” Dogecoin Coins are used to show users appreciation for successful comments or contributions. It is because of this media presence that Dogecoin Coin has quickly gained recognition.
Who created the Dogecoin?
Originally, Dogecoin was developed in 2013 as a parody of the Bitcoin and launched on the market. The crypto currency was invented by the programmer Billy Markus and the marketing expert Jackson Palmer and underwent a very rapid development. The two founders took advantage of the social networks and their fast-paced nature to establish their product on the market.
At about the same time, the Internet phenomenon “Doge” was circulating. A so-called “Meme”, which shows the head of a dog of the breed Shiba Inu and is surtitled with humorous sentences. This resulted in the name for Dogecoin. The fact that the resonance of Dogecoin was so increased, although at the beginning it was only a gag, is especially due to the social character of the currency. Dodgecoin coins are not only used as “tips” on social platforms, but were also donated in the context of some large charity events Dogecoin coins, which sharpened the public focus on the currency significantly.
But what exactly is Dogecoin?
The Dogecoin is a crypto currency separated from the Litecoin which also uses the Peer-to-Peer Connection and works similar to the crypto silver (Litecoin).
Actually the Dogecoin was meant as a kind of joke to parody the Bitcoin. If you want to know more about the hype about the Dogecoin, you can enter “Doge Meme” at Google and have a look at the first hits.
The Dogecoin uses the Proof-of-Work algorithm in its Skrypt. The creation of a new blog does not take half as long as with Litecoin, namely 1 minute instead of 2.5 minutes.
In contrast to other crypto currencies, the number of coins is not limited. Originally, the coin was originally designed for 100 billion coins and therefore more numerous than for example the Bitcoin (21 million Bitcoin units as maximum) or the Litecoin (84 million Litecoin units as maximum). However, the Dogecoin founder decided on 02.02.2014 that there should be no limit for this cryptocurrencie.
Thus this virtual currency has a slightly inflationary character. Since the year 2015, approximately 5.25 billion new currency has been washed into the market every year. This corresponds to an inflation rate of 5.3%. However, it should be noted that the Dogecoin amount spent remains constant and thus the inflation rate will be relatively lower in the coming years and decades. In 2050 it will still be just under 1.9%.
What are Dogecoins used for ?
Like many other crypto currencies, Dogecoins offer a certain anonymity. The wallet only consists of a pair of keys and does not provide any information about the owner. This means that certain digital services can be used without having to reveal one’s own identity.
Of course, this anonymity is lost as soon as you buy something in an online shop, for example, and also deposit your address.
There are quite a few shops that accept Dogecoins as a means of payment. Often the coins are also used as tips at blogposts or e.g. in Reddit (//www.reddit.com/r/dogecoin/).