Dogecoin was created in December 2013 using the lucky coin fork of Litecoin. One of crypto’s strangest projects in the meme category is dogecoin. The market hasn’t changed much since its inception. While there are projects that have the potential to change the world, other cryptocurrency enthusiasts have stepped up to the plate to use memes to spread the word about the industry.
The most recent example is a cryptocurrency with the literal name meme that was airdropped to a small group of early adopters in 2020 before rising to a price of $2,000 per token. Satirical assets have previously experienced extreme valuations. With the introduction of dogecoin six years ago, internet culture infected cryptocurrency.
A software developer from Oregon created a parody cryptocurrency based on the popular doge meme that was circulating in online forums at the time in an effort to draw more mainstream users to bitcoin. Later that year, after collaborating with Jackson Palmer, an employee of Adobe who chose to launch the dogecoin.com website on his own, the creator of Dogecoin Billy Marcus launched the cryptocurrency.
Within a few months of its launch, the project quickly gained traction on social media and reached a market cap of $1 million, which was an incredible accomplishment at the time. Neither Marcus nor Palmer spent an excessive amount of time transforming Dogecoin into a revolutionary cryptocurrency. A few paragraphs in comic sans and a logo of the meme comprised the first version of dogecoin.com, but—believe it or not—that wasn’t a problem that prevented dogecoin from becoming well-known.
Doge investors could act kindly by rewarding content creators through dogecoin’s tipping system, which is integrated into numerous websites, including Reddit. Doge was used by cryptocurrency users to raise tens of thousands of dollars for a variety of projects and fundraisers. Doge was viewed by traders over the years as a speculative and incredibly volatile asset that consistently came before the so-called altcoin seasons. a time when all alternative coins went through a bullish phase and saw their values soar.
Because of that dogecoin always remained relevant and never faded into obscurity however its meme status also meant that the cryptocurrency would never move farther from being a joke. Dogecoin’s popularity increased significantly again this year as a result of numerous successful social media marketing campaigns. TikTok users started a bullish trend by discussing dodge’s unexpected price increase and urging other users in the community to invest in the expectation that the asset would soon reach one dollar.
Tik Tok FOMO happened in mid-2020 and it died down after a couple of months coinciding with the bearish pressure being projected into the rest of the altcoin market, But after bitcoin decisively crossed the $20,000 mark, the mania returned, and regular people once more began to invest.
Business tycoon and internet sensation Elon Musk was at the forefront of the most recent increase in interest in Dogecoin.
who, using his powerful online presence as a platform, used Twitter to spread dodge’s message. Elon Musk even went so far as to designate himself as the CEO of Dogecoin. He began tweeting about Doge in January to increase the buzz. Within that time the cryptocurrency rose from .004 cents to a new all-time high of 40 cents by April and then it also hits its all-time high at 0.68 cents.
Dogecoin managed to outperform not only its historical market performance but also all other altcoins, securing its place as one of the most lucrative cryptocurrencies during this bull run. We’re done with dogecoin’s history it’s time to get back to the fundamentals and learn more about how the project works and what its intended use cases are.
Dogecoin fundamentals and use cases
Dogecoin launched in December 2013 by using an existing Litecoin fork called lucky coin. Users had access to an open-source cryptocurrency with a proof-of-work algorithm that allowed for decentralized money transfers similar to bitcoin. New coins are generated by mining dogecoin. Which essentially amounts to using computing power to work through challenging mathematical puzzles in exchange for money.
Dogecoin miners used script rather than the conventional Sha-256 hash function because Litecoin itself didn’t implement the same mining algorithm that bitcoin did. Script has the advantage of being ASIC resistant, giving regular users an advantage over miners with specialized crypto mining equipment.
The fact that Litecoin miners additionally made doge thanks to a merged mining model put in place by dogecoin’s developers is another fantastic benefit that contributed to an astounding adoption rate.
The block confirmation time and block rewards of the project are where the main differences are found. Every minute, the dogecoin blockchain confirms a new block of transactions, and it pays miners 10,000 coins as a reward. The only issue is that, as a cryptocurrency, doge has no hard cap, meaning that, barring community agreement, there can be an infinite number of coins.
In actuality, the project has a circulating supply of 127 billion, which is incredibly high given its cost. It’s also important to note that, aside from its tipping system, which some people continue to use today, dogecoin has no real use cases. The main reason people buy cryptocurrencies is for speculation, and for the majority of investors, investing in doge when it was still affordable has paid off handsomely.
What started as a meme featuring the well-known Shiba Inu dog breed eventually evolved into a parody cryptocurrency that endured the market for digital assets for almost ten years, but by all measures possible we can at least say dogecoin achieved its creator’s ambitious intentions of attracting more mainstream users to cryptocurrencies. Even if Doge proves to be a bubble, at least it has made society aware of how massive a social experiment it is.
A coin has made cryptocurrency enthusiasts millionaires just by using internet memes. Showing how strongly markets can move when psychological forces are at play with the aid of FOMO. What do you think will dogecoin end its run by reaching the symbolic one-dollar price target or will wales attempt to front-run newcomers? Let us know what you think about dogecoin by leaving a comment below with your ideas.