In four words or less: Meme coin
Amusingly, the inspiration for Dogecoin (DOGE) came from the Shiba Inu “Doge” Internet meme. In 2013 Sydney based marketing geek Jackson Palmer tweeted, “Investing in Dogecoin, pretty sure it’s the next big thing.” Billy Markus, a Portland based software engineer saw the tweet, loved the idea and worked with Palmer to bring the idea to life. The Internet loves a meme, and the crypto community are no exception so it won’t surprise you to learn that DOGE quickly gained a cult following with a fun, vibrant community of supporters. DOGE has established itself as a “decentralised, peer-to-peer digital currency that enables you to easily send money online.”
What problem does Dogecoin solve:Dogecoin is a cryptocurrency designed for fast digital payments. An early use case was to tip DOGE to fellow Internet-goers who create great content. Dogecoin. Dogecoin is widely accepted on crypto exchanges and it’s often used by traders to move between other cryptos when transferring to exchanges as DOGE transactions are fast and cheap.
Properties of Dogecoin:
- Dogecoin is based on Luckycoin, which is based on Litecoin, and uses the same scrypt technology that Litecoin uses in its proof-of-work algorithm
- The Dogecoin network was originally intended to produce 100 billion Dogecoins only. In 2014 Jackson Palmer announced there would no limit to how many Dogecoins would be produced which makes it an inflationary coin
- Dogecoin transactions are fast and cheap
- The Dogecoin community is fun and supportive. In 2014 the Dogecoin community raised $50,000 in DOGE in Dogecoin to help fund the Jamaican National Bobsleigh team in their quest to get to the 2014 Winter Olympics.
- Also, in 2014 the community raised $55,000 in DOGE to sponsor NASCAR driver Josh Wise. You’ll find them at https://www.reddit.com/r/dogecoin/
Adoption and penetration:
DOGE is tradable on most of the bigger crypto exchanges. DOGE can be used as a currency to make purchases at various Internet retailers.
Management and governance:
The Dogecoin team is made up of volunteer developers. Updates are rare.
Risks and limitations:
Dogecoin is a simple cryptocurrency for payments. That is its strength. Due to its inflationary supply, DOGE is best thought of as a cryptocurrency to use for day to day payments. It might not be the best long term investment. However Doge is popular with traders as it can experience sudden swings in price.
Competition: Bitcoin, Litecoin, Dash