Dogecoin is an open-source, peer-to-peer cryptocurrency like Bitcoin, Litecoin and Dashcoin. It uses the blockchain technology to function. The idea to introduce this currency came from an internet meme. It is named after the doge meme featuring the Shiba Inu breed of dogs.
It was developed by Billy Marcus and Jackson Palmer on December 6, 2013. Introduced as a joke currency, Dogecoin quickly gained success reaching $60 million worth of capitalization in 2014. The dogecoin community is one of its kinds where people support good causes and helps the community to grow and flourish.
Features That Make Dogecoin Unique:
Although Dogecoin works on the same decentralized technique used by other cryptocurrencies; however, there are several features which distinguish Dogecoin from other cryptocurrencies and make it unique. The features are as follows.
- Mining: All the miner need to have is a Dogecoin wallet and software to install, and he can quickly start mining. The software is safe, secure and easy and can be used on any computer. It does not need a powerful computer. Also, the time required for mining is very less compared to other cryptocurrencies.
- Tipping feature: It is one of the main features which keep miners engaged by providing then incentives. The social media users offer Dogecoin as a tip for various tasks. If the user completes the job, they get tips. The tasks usually include creating content, surveys, watching the advertisement, etc.
- Inflationary Currency: Dogecoin is an inflationary cryptocurrency. It means Dogecoin will be in constant supply. It is an advantage for Dogecoin as a massive amount of coins are lost due to negligence, loss of a wallet, damaged hardware, etc. This feature makes sure that there are enough Dogecoin in the market to make mining profitable. It is one of its most unique features as it is not seen in other cryptocurrencies. Cryptocurrencies like Bitcoin, Litecoin and Dashcoin, are non-inflationary in nature.
- Strong community: Dogecoin has a robust and supportive community. People in the community stick together and helps various causes. It is a fun-loving, friendly and approachable community. They keep growing strong even after two huge scams in 2014. The main reason why Dogecoin is still in the market is because of its population.
- 1 DOGE = 1 DOGE: No matter what the dollar prices are 1 DOGE will always be equal to 1 DOGE. This feature saves it from becoming a speculative cryptocurrency. This makes the transaction easy and helps Dogecoin to be generally accepted.
- Fundraising: The dogecoin community supports various events and raises funds for the same. They have raised USD 50,000 for Jamaican Bobsled Team in 2014 Winter Olympics. USD 30,000 was raised to build a well in the Tana River basin in Kenya, USD 55,000 was raised to support a member from the community to participate in NASCAR. Fundraising is a critical feature of Dogecoin, which makes it better than all the other cryptocurrencies.
Advantages and Disadvantages of using Dogecoin:
Like all the cryptocurrencies, Dogecoin has its own advantages and disadvantages. The advantages and disadvantages of using Dogecoin are as follows:
- Advantages of Dogecoin:
- Dogecoin has a very low transaction fee compared to all the other cryptocurrencies. The transaction fees are as low as $0.01. This encourages people to use Dogecoin.
- Dogecoin is very simple to use. It was created to be a fun a simple cryptocurrency. The users don’t need advanced technology and software to use it. It can be operated using a simple computer.
- The transactions are simple to make, and if any new users face problem while using Dogecoin, the community members guide them.
- The users get tipped when they provide useful details and complete some tasks. It engages the users and motivates them to use Dogecoin by offering them incentives.
- Dogecoin is faster than most of the cryptocurrencies. It has a block time of 60 seconds, which makes it quick and easy to use. Users do not have to wait for a long time to process their transactions.
- Dogecoin is readily available in the market. The supply of Dogecoin is abundant in the market, and it is readily accessible in most of the exchanges.
- It is a fun cryptocurrency with a very lively community. The community members are fun and support. They help the members and raise funds to support them.
- Disadvantages of Dogecoin:
- Dogecoin has very less value compared to other cryptocurrencies. The current market value of Dogecoin is very less.
- Dogecoin is less profitable. The miners don’t get much reward in dogecoin transaction. Other cryptocurrencies like Bitcoin and Litecoin are more profitable.
- Dogecoin has security concerns. It has already suffered from two major scams in the past. Other cryptocurrencies are more secure to prevent scams and frauds.
- Dogecoin has no updates since 2015 when Jackson Palmer left. There is no update and improvement in the cryptocurrency since then.
- Dogecoin has many competitors in the market. Cryptocurrencies like Bitcoin, Litecoin and Dashcoin which are well established in the market are a major threat to Dogecoin.
Future of Dogecoin:
Dogecoin was created as a joke, but it proved everyone wrong with its success. Dogecoin faced many hurdles and scams to date. It all started when Jackson Palmer, the father of Dogecoin, left in 2015.
Even after facing all these problems, Dogecoin is still surviving in the market. The main reason behind the survival of Dogecoin is its active community. The community came together during every tough time and saved Dogecoin from getting kicked off from the market.
As for the future of Dogecoin, we can say that it is very unique and loved by people in the market due to its simple and fun environment. Unity is strength proved correct for Dogecoin, and with the support of its community, and some developments, dogecoin can shine again and be better than ever.
We can all take some risks by investing in Dogecoin as its value is less. If it loses in the market, the loss will be less, but if it survives and grows like bitcoin, the profit will be sweet.