What is Dogecoin? A Comprehensive Guide to The Most Popular Meme Coin

What Is Dogecoin (DOGE)?

Dogecoin (DOGE) is a peer-to-peer, open-source cryptocurrency and Layer 1 blockchain that was created in 2013 by Jackson Palmer and Billy Markus. It is currently considered to be a ‘meme coin’ and features a Shiba Inu, a Japanese breed of dog, as its logo. Dogecoin’s massive valuation and volatile price are closely linked to Elon Musk, who has often posted cryptic Tweets about Dogecoin, fuelling speculative bouts of buying pressure.

Key Takeaways

  • Dogecoin has a loyal community of supporters who use social media guerrilla marketing to increase the membership of the so-called ‘Doge Army.’
  • The unlimited supply of Dogecoin means that the price of a single coin is always extremely low – something retail speculators favor.
  • Dogecoin has gained popularity due to the community’s marketing efforts and Elon Musk’s interest in the project.
  • Despite being a meme coin, Dogecoin is now accepted as a form of payment by several global corporations.

What is the History of Dogecoin?

Dogecoin was created in 2013 by Jackson Palmer, a product manager at Adobe Inc., and Billy Markus, a software developer at IBM1. Initially created as a parody of cryptocurrency hype, Dogecoin quickly gained a following.

Dogecoin has an extremely loyal community of supporters who trade it and use it to tip for content on social media platforms such as X and Reddit. Users can buy and sell Dogecoin on digital currency exchanges, and they can opt to store their Dogecoin on an exchange or in a Dogecoin wallet.

Markus based Dogecoin’s code on Luckycoin, derived from Litecoin, and initially used a randomized reward for block mining, although that was changed to a static reward in March 2014. Dogecoin does use Litecoin’s Scrypt Proof-of-Work (PoW) system technology2.

By using the Litecoin scrypt, Dogecoin miners aren’t able to use ASIC mining rigs, which are extremely expensive and favor large-scale mining operations. This is believed to make Dogecoin more democratic as it prevents big mining operations from taking over the network and squeezing out individuals.

CryptocurrencyPoW Algorithm
Dodgecoin’s founders decided to use Litecoin’s PoW algorithm over Bitcoin’s to limit the use of ASIC mining rigs.

Dodgecoin’s value remained fairly stable for several years after the launch, but in 2021, it rallied along with the rest of the crypto market. Some investors saw returns of well over 10,000% as the crypto’s value hit an all-time high of $0.731578 in May 2021.

What makes Dogecoin different from Bitcoin?

Dogecoin and Bitcoin are both Layer-1 blockchains, but they have some notable differences. One of the most significant differences is that Dogecoin (DOGE) has an unlimited supply while Bitcoin is capped at 21 million.

The models of the two projects are fundamentally different. Bitcoin was created in response to the 2008 financial crash as an alternative to a financial and monetary system that many people considered broken following the Great Recession.

Dogecoin was created with a less serious vision based on memes and online hype. However, despite Dogecoin’s perceived lack of seriousness, it has grown into one of the most traded cryptos on the market and generally holds firm in the top 10 cryptos by market capitalization.

In terms of market capitalization, Bitcoin is significantly larger than Dogecoin. As of December 2023, Bitcoin’s market capitalization is around $850 billion, while Dogecoin’s market capitalization is around $13 billion.

Despite its smaller market capitalization, Dogecoin has a loyal fanbase and has been used for charitable causes, and a committed team of developers is constantly launching updates to the network.

Data PointBitcoinDogecoin
Proof of Work AlgorithmProof of Work (PoW)Proof of Work (PoW)
Average Transaction Speed6-7 Transactions per Second30 Transactions per Second
Total SupplyLimited to 21 million coinsInfinite
Bitcoin and Dogecoin are fundamentally different in many ways.

What are the risks facing Dogecoin (DOGE)?

Dogecoin has faced several concerns over the years, including the departure of its co-founder Jackson Palmer, who cited a “toxic community” as the reason for his leaving. Another significant concern was the Moolah exchange, created by Alex Green, a Dogecoin community member, which has been accused of various fraudulent activities.

Green allegedly convinced members of the community to donate large sums to help fund the creation of his exchange, but it later surfaced that he had used the donations to buy more than $1.5 million of Bitcoin, which in turn bought him a lavish lifestyle.

These incidents have raised questions about the security and reliability of Dogecoin and the community surrounding it. Despite these concerns, Dogecoin continues to have a dedicated following and remains popular among cryptocurrency enthusiasts.

There’s also the ongoing argument about the intrinsic value of Dogecoin (DOGE), with many critics claiming it has no real value other than a presence on social media and support from Elon Musk.

What is The Dogecoin Price History?

Dogecoin’s journey from a meme-based digital currency to a multi-billion dollar asset has been interesting and, at times, extremely turbulent.

Dogecoin enthusiasts celebrated in the summer of 2019 when the crypto exchange Binance listed 3the coin, and many thought Tesla CEO Elon Musk had endorsed the coin in a cryptic tweet.

Elon Musk openly supported Dogecoin in 2021, tweeting that he was working with the coin’s developers to improve transaction efficiency. The SpaceX founder ran a poll on social media asking if Tesla should accept Dogecoin as a form of payment. This endorsement led to increased mainstream attention and investment in Dogecoin.

In October 2021, cinema chain AMC Entertainment Holdings announced that it would accept Dogecoin for digital gift card purchases, further adding utility to the meme-based cryptocurrency. This move by a major corporation shows the increasing acceptance of Dogecoin as a legitimate form of payment.

The Binance listing and Musk’s tweets helped Dogecoin’s value skyrocket during the bubble that peaked in May 2021, and it crashed with the rest of the market in 2022. It has since recovered some of its losses but still trades at an 86% discount on its all-time high, according to TradingView.

The Dogecoin price exploded in 2021 but has since dropped by over 85%.
The Dogecoin price exploded in 2021 but has since dropped by over 85%.

Where Is Dogecoin Traded?

Dogecoin (DOGE) can be purchased on various cryptocurrency exchanges such as Coinbase, Binance, and Kraken.

Where can you spend dogecoin (dOGE)?

As of 2023, a growing number of companies accept Dogecoin as a form of payment. These include prominent businesses like The Dallas Mavericks, AirBaltic, Newegg, The Kessler Collection, Twitch, Tesla, Keys4Coins, AMC, GameStop, and Bitrefill. It’s worth noting that the companies that accept Dogecoin often change based on new policies towards crypto.

What is Elon Musk’s role in the rise of this Meme coin?

Elon Musk has been a vocal supporter of Dogecoin, even stating that he owns the cryptocurrency. In July 2022, he reiterated his support and announced that Tesla would accept Dogecoin as payment. Furthermore, Musk has stated that SpaceX will accept Dogecoin in the future. Despite Dogecoin starting as a joke, Musk’s investment in the cryptocurrency has helped to increase its popularity and value.

The value of the crypto can experience massive swings based purely on the tweets of the world’s richest man. In December 2023, Musk is believed to have personally halted a Dogecoin rally with one tweet related to his AI fundraising plans4.

Frequently Asked Questions

How to buy Dogecoin?

Dogecoin can be purchased on various cryptocurrency exchanges such as Binance, Coinbase, and Kraken. Users can create an account, verify their identity, and deposit funds to buy Dogecoin. Some exchanges may require users to purchase Bitcoin or Ethereum first, which can then be exchanged for Dogecoin.

What are the current predictions for Dogecoin’s future value?

Dogecoin’s future value is difficult to predict as it is a highly volatile cryptocurrency. While some analysts believe that Dogecoin’s price may continue to rise due to its growing popularity and increasing adoption, others are skeptical and warn of potential price crashes. It is important to do thorough research and invest wisely. One look at price prediction sites such as CoinCodex will tell you that the forecasts are massively varied and refrain from making specific predictions.

Which blockchain technology does Dogecoin utilize?

Dogecoin utilizes a modified version of the Litecoin blockchain, which uses a proof-of-work consensus algorithm to validate transactions. This allows for fast and secure transactions on the Dogecoin network.

How can you track the price of Dogecoin in USD?

The price of Dogecoin can be tracked in real-time on various cryptocurrency tracking websites such as CoinMarketCap and CoinGecko. Users can also use cryptocurrency exchange platforms to track the price of Dogecoin in USD.

What are the purposes and uses of Dogecoin?

Dogecoin was initially created as a joke, but it has since gained popularity and is now used for various purposes. Some use Dogecoin as a means of payment, while others use it for tipping content creators on social media platforms. Additionally, some businesses have started accepting Dogecoin as a form of payment.

What are the best Dogecoin wallets available for use?

There are several Dogecoin wallets available for use, including the official Dogecoin wallet, Exodus, and Ledger Nano S. It is important to choose a wallet that is secure and reputable to ensure the safety of your Dogecoin holdings.

Peter Barker


Peter Barker

Peter is an experienced crypto content writer and a DeFi enthusiast with more than 3+ years of experience in the space. Previously a journalist and news editor at a leading European news sourcing agency.

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