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What is Dogecoin?
Dogecoin was created on December 6, 2013 as a "joke". Its purpose was to make fun of other cryptocurrencies, which at the time were rather frowned upon. But things didn't go exactly as planned for its creator Billy Markus. A month later, a large community had formed around this currency and its capitalization already reached $ 60 million.
This crypto-active has as logo the famous Japanese dog breed Shiba Inu, which is at the origin of the internet meme of a dog named "Doge". This meme consists in using the image of this dog by lending it sentences in English that are really short and not necessarily written in academic English. This meme was therefore chosen to refer to the famous "When moon?" or "When lambo?" that many crypto investors like to use.
Here is the video that was created 2 months after the creation of this cryptocurrency:
As you can see, the original purpose of Dogecoin was really to have a good laugh with friends.
However, even if the DOGE does not really have an economic interest, it is possible to use it mainly as a means of payment to give tips to creators of content on the internet, for example through the sodogetipbot on Reddit.
How does Dogecoin work?
As I explained in the previous point, Dogecoin was not originally intended to have any real use. But things being what they are and given the irrationality of the cryptocurrency market, this crypto asset has proven to be useful for several things:
1- To raise funds to help people
DOGE has been used many times to help people by initiating a fundraiser. Here are some examples :
- During the Winter Olympics in Sochi. A fundraiser was organized to allow the Jamaican bobsled team to participate in the Olympic Games. They were unable to afford the plane tickets to get to the competition.
- By reimbursing people who are victims of DOGE theft. 3 weeks after the creation of Dogecoin, hackers managed to divert payments to their wallets. The flaw was quickly fixed and a crowdfunding within the Dogecoin community took place to reimburse the holders of DOGE who were victims of this scam.
- Provide access to safe water for people in need. Funds were raised to allow the creation of a well bringing drinking water to a remote village in Africa.
2- To tip content creators
Dogecoin is also a means used to tip content creators. To do this, there are different services that make it easy to send money to people whose creations you appreciate:
- Doger on IRC
- Sodogetip on Reddit
Technical characteristics of Dogecoin
When DOGE was created, it was agreed to limit the total maximum amount to 100 billion pieces. However, it was later decided that this number would ultimately be unlimited. Dogecoin has a block duration of 1 minute.
The rewards offered to minors have varied over time and are now set at 10,000 DOGE per block:
- Between blocks 1 to 100,000: random reward between 0 and 1 million DOGE.
- Between blocks 100.001 and 145,000: random reward between 0 and 500,000.
- From block 145.001 to block 200,000: fixed reward of 250,000 Dogecoin.
- Between blocks 200.001 and 300,000: 125,000 pieces.
- Between blocks 300.001 and 400,000: 62,500 DOGE.
- From the block 400.001 and 500,000: fixed reward of 31,250 Dogecoin.
- Between block 500.001 and 600,000: 15,625 pieces.
- From block 600.001: fixed reward of 10,000 DOGE.
Team and partners
Continuing the joke that is this crypto-active, here is the information that can be found about the development team:
- Creators: Jackson Palmer and Shibetoshi Nakamoto (pun intended between the dog breed and the creator of BTC Satoshi Nakamoto).
- Designer: PowerLemons.
- Logo: Christine Ricks.
In other words, we don't have any real information about the Dogecoin development team.
Regarding partnerships, we can however consider as partners the platforms that accept tips through the services presented above. Here they are :
- Twitch.tv
- Freenode IRC (#Dogecoin)
Advantages
Attention, the following advantages are to be taken in the second degree:
- The dog is cute.
- Dogecoin is a corner that claims its uselessness. Therefore, rather than investing your money in a potential scam, you can invest directly by purchasing DOGE tokens.
- You will be part of the most delusional community of cryptocurrencies.
Disadvantages
This time, in a serious way, here are the disadvantages of Dogecoin:
- This crypto asset is just a huge joke despite its considerable capitalization.
- There is no project and no real utility (apart from the tip system).
- It is arguably the worst investment you can make in cryptocurrencies if you are here to make money.
My opinion on Dogecoin (DOGE)
As you may have noticed (at least I hope so), this crypto-asset should be considered for what it really is: a huge joke.
I therefore advise you not to invest in it if you hope to make a profit. If you have money to throw out the window, then you have a good opportunity to accomplish this goal.
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