Dogecoin – What is it, definition and concept

Dogecoin (DOGE) is a cryptocurrency that had its inspiration in Litecoin, and that is represented by a mascot inspired by «Doge», a dog of the Japanese shiba inu breed very popular on the Internet.

We are facing a cryptocurrency that has a technical aspect similar to Bitcoin.

Regarding the software, this is open source and allows several payment clients such as Multidoge, Dogechain or Crypto-pay. Of course, we must remember that it was born from a meme.

Origin of dogecoin

It was devised by Billy Marcus, an IBM programmer. At first it was due to his interest in the cryptocurrency “Bells”, based on a Nintendo character. His subsequent objective was to unseat Bitcoin, distancing himself from it by avoiding its bad reputation due to the black market.

Jackson Palmer, a friend of Marcus and an Adobe worker, contacted him to carry out and carry out the project. In December 2013 it had already been launched and its value rose more than 300% in a short period of time.

However, before the end of December, it experienced a crash. Its price was reduced by 80%. Also, within a few days there was a Dogecoin theft. A cracker created a static address where to send the fraudulent transactions.

Interesting information about Dogecoin

Some of the data that we expose affects this cryptocurrency in a positive way and others in a negative way.

  • First of all, we must not underestimate the subjective value that the social mass brings to it. In fact, it is the second with the most followers on Reddit.
  • Their commissions are cheaper than those of other competitors. This is because its listing price is low.
  • The currency suffers from an inflationary problem, due to the fact that there are no limits on its issuance.
  • The transaction speed is much higher than that of others like Bitcoin.
  • Security is a long way from older ones like Bitcoin.
See also  Sampling for convenience - What is it, definition and concept | 2022

The future of this cryptocurrency

To finish, let’s see what the future offers us in relation to this cryptocurrency:

  • Compared to Bitcoin, this cryptocurrency has certain shortcomings. Above all, those related to security, its inflationary trend and its too recent existence. This implies that it is not really a competitor to consider, in this case.
  • In addition, there are alternatives on the market that are considered better. For example, Ethereum, XRP, or Litecoin. The latter was his inspiration, but the original is usually better than the copy.
  • Its high volatility makes it too speculative. In fact, all cryptocurrencies are, but others enjoy greater stability.
  • Lastly, we can say that Dogecoin is not suitable for non-speculative and long-term investors. This is due to the problems mentioned in the previous points.

Leave a Comment