Way back in 2013, a couple of guys thought the cryptocurrency industry was taking itself too seriously. So they launched their own crypto coin as a way to poke fun at the industry. It features the image of a dog – a play on an internet meme that was popular at the time. But it’s evolved […]
Way back in 2013, a couple of guys thought the cryptocurrency industry was taking itself too seriously. So they launched their own crypto coin as a way to poke fun at the industry. It features the image of a dog - a play on an internet meme that was popular at the time. But it’s evolved since then into a legitimate player in the industry. Step into the lighter side of altcoins with this quick guide on how a dog meme became a pillar of stability.
Even though he tweeted in jest, several people though he was on to something. They said the industry really needed a light-hearted token that could counter the more controversial coins on offer. So Palmer teamed up with Billy Markus, a programmer, to make Dogecoin a reality.
📈 Unlimited supply – Originally the coin was capped at 100 billion coins, but it was later changed to an unlimited supply. That keeps the price relatively stable.
🗣 Community – The heart of Dogecoin is its active community. The more than 100,000 members on Reddit are renowned for being a friendly and welcoming bunch.
✋ Philanthropy – That same community has been known to rally around good causes. They raised more than $25,000 in Dogecoin to help send the cash-strapped Jamaican bobsled team to the 2014 Olympics. They also teamed up with a water charity to raise thousands to improve clean water access in Kenya.
Miners can mine Dogecoin by themselves, or as part of a mining pool (a group of people who share computing power to improve their chances of cracking the code first).
Since there is an unlimited supply of Dogecoin tokens, the value of a single token is very low compared to other altcoins. That means Dogecoin mining isn’t very profitable, so there isn’t much incentive. The low reward doesn’t deter Dogecoin enthusiasts, though. To them, Dogecoin was never intended to be an investment; it was meant to be a dynamic currency.
Not so with Dogecoin. Since the token supply is high and price is low, it’s not attractive to investors looking to hold. Instead, it flows freely as a peer-to-peer digital currency.
You can also trade Dogecoin for other cryptocurrencies on several exchanges, which has made the currency an unlikely medium by which people hop from exchange to another.
When Dogecoin briefly hit a $2 billion market cap in January 2018, Palmer remained critical. He tweeted, “I think it says a lot about the state of the cryptocurrency space in general that a currency with a dog on it which hasn’t released a software update in over 2 years has a $1B+ market cap.”
That said, the Dogecoin community remains active and loyal. With the ease of acquiring Dogecoin, the low trading cost, and the relatively stable price, it could very well stick around for a long time.