In previous blog articles, we’ve covered a broad view of cryptocurrency and offered a closer look at Bitcoin, Ethereum and other altcoins.
👀 In this article, we’ll take a closer look at the meme-based cryptocurrency – Dogecoin and provide information on what it is and how it works. Here is our brief guide to get you on a clearer path to understanding.
🌰 DOGECOIN IN A NUTSHELL
👉 Dogecoin is an open-source peer-to-peer digital currency that utilizes blockchain technology. It is widely credited as the first memecoin.
The DOGE token is the native cryptocurrency of the Dogecoin blockchain.
📜 DOGECOIN HISTORY
Software engineers Jackson Palmer and Billy Marcus (who also goes by the moniker “Shibetoshi Nakamoto”), created Dogecoin in late 2013. Palmer branded the cryptocurrency’s logo using a meme popular at the time that featured the deliberately misspelled word “doge” to describe a Shiba Inu dog. This effectively became the Dogecoin mascot.
It was created initially to poke fun at Bitcoin and garnered a cult-like following early on that fostered a community of DOGE enthusiasts who engineered publicity stunts to raise the cryptocurrency’s profile.
Tesla, SpaceX and now Twitter CEO, Elon Musk, has also been partially responsible for the massive growth of the Dogecoin value after calling it his favorite cryptocurrency. Since mid 2021, Dogecoin has consistently been polling among the top ten cryptos by total market capitalization.
As a testament to the popularity of Dogecoin, Elon Musk’s Tesla corporation accepts DOGE as a form of payment. With Musk’s recent acquisition of Twitter, it is speculated that DOGE may form part of a wallet feature for a potential Twitter cryptocurrency.
Dogecoin does not have a fixed max supply. The current total supply of Dogecoin is 132.67 billion DOGE and is in full circulation. The current market capitalization of Dogecoin is approximately USD$10.63 billion.
❓ HOW DOES DOGECOIN WORK?
⛏️ Like many other coins, Dogecoin runs on its own dedicated blockchain. The Dogecoin blockchain uses a Proof-of-Work (PoW) consensus mechanism (similar to Bitcoin). New Dogecoin is released via cryptocurrency mining (this process is explained in detail in our Bitcoin Mining article).
Dogecoin's code is based on Luckycoin, which is derived from Litecoin. Initially, this used a randomized reward for block mining, but was later changed to a static reward early in its development. Dogecoin uses Litecoin's scrypt technology.
📊 DOGECOIN vs BITCOIN
Dogecoin markets itself as a “fun” version of Bitcoin. Its Shiba Inu dog mascot is synonymous with the cryptocurrency’s brand and lends itself well to the internet meme culture that serves the online crypto community.
As Dogecoin has an infinite supply, it is considered an “inflationary coin”. Bitcoin, on the other hand, has a finite supply and is considered “deflationary”.
💲 DOGECOIN PRICE
When Dogecoin initially launched in late 2013, it had a minimal value that fluctuated between USD$0.0002 and USD$0.0039 for its first few years of trading (through to late 2017). DOGE experienced an early peak of USD$0.013 in early 2018. As the popularity of Dogecoin increased in 2021, the Dogecoin value reached an all time high price of USD$0.58 in May of that year.
👉 EARNING DOGECOIN WITH BLOOM
📲The Bloom shopper rewards app allows you to earn Dogecoin and other crypto (like Bitcoin, Ethereum and a range of other altcoins) with every purchase made on your Visa card 💳.
🦉 All you need to do is download the Bloom app, register an account, link your Visa card and shop anywhere using your credit or debit card.
With every purchase, you will earn Bloom Coins by simply using your Visa card 💳. The more you use your card, the more Bloom Coins you will earn.
💰 The Bloom Coins you earn can be spent within the app 🎁 and converted into DOGE.
🆓 Converting crypto on Bloom, such as Dogecoin, is free of charge and has no gas fees!
💎 Earn exclusive 3x Bloom Coin rewards with a Premium Membership.
The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such. Bloom does not recommend that any cryptocurrency or NFTs should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.