If you have been on the grid recently you must have heard a lot about ‘Dogecoin’. What exactly is it? Just for starters, it’s not just any other cryptocurrency or any other pyramid scheme that just made it big.
Created by Billy Markus and Jackson Palmer, dogecoin was originally engineered to be a transaction system based on the ‘doge’ meme. It uses the ‘Scrypt’ algorithm which is very similar to what Bitcoin is made on, and that makes it highly efficient by giving it only 1-minute block timing intervals.
In non-technical terms, Dogecoin has proven to be an all-star drafter compared to what was thought it would become ever since it was created. This is evident as Dogecoin rose over 300% in value in its first 72 hours of trading. In January 2021, the dogecoin rose to over 1 USD, giving it an 800% increase in market price all under the short span of 24 hours.
The Encouragement Game
Dogecoin has received huge encouragement in the form of tweets and payment acceptance throughout various industries. Billionaire Mark Cuban, owner of the Dallas Mavericks, carried out over 20,000 Dogecoin transactions and became the number one merchant using the alt-coin ever since.
From the influencer perspective, Elon Musk took the crypto world by a storm by tweeting about Dogecoin after which it hit a new high of $0.08. Ever since, Musk has been responsible for any fluctuations in the market trends of dogecoin, pushing it to an all-time high and making it the 4th biggest cryptocurrency in the world.
Does Dogecoin matter?
We’ll know in time. Dogecoin isn’t the first of its kind, and there have been a lot of meme coins and cryptocurrencies that run on the same ‘Scrypt’ technology. Not every one of them has had the same success as Dogecoin or Bitcoin per se. The DeFi system (Decentralized Finance) makes Dogecoin one of its kind and allows it to enable peer-to-peer exchanges.
When we talk about Dogecoin’s success, we start to see a pattern in the market trend. The price of the Dogecoin fluctuates as per the emotion of the crowd i.e. through memes. After all, the coin is based on one. Memes have not only controlled how the Dogecoin works but also taken up its fate in their own hands.
How to make money with Dogecoin?
At your own risk, yes you can make a lot of money with Dogecoin. Although, the cryptocurrency market is highly unstable and we encourage people to invest their money wisely and at their own risk. Bitcoin and its success have sure influenced a lot of people to get into the crypto game but there are better ways to make money with crypto if you have the proper resources for it.
Here we come to the other half of the face of the crypto world – mining. Stay tuned to our website to check out TechQuila’s detailed guide on how to mine your own choice of cryptocurrency.
The Mining Method
Given the proper equipment and hardware, you can build your own mining rig, join a mining pool and get going – it’s very simple. However, mining can only be profitable if the running costs are significantly lower than the profit you’re gaining. The running costs include the cost of electricity and the wear and tear of your components. Running a mining rig for long periods of time can produce a lot of heat, to avoid thermal throttling an ambient temperature needs to be maintained too.
There is currently a supply of 129.5 Billion Dogecoins in circulation as of 9th May 2021, out of which 100 billion were mined in 2015 itself. The mining community for dogecoin has far moved ahead since then as analysts predict a doubling figure by the year 2075. Popular mining software Nicehash has now opened its mining portal for dogecoin as of 12th May 2021.
The Trading Method
This is the most common method of dealing with crypto and also the easiest, but at the same time comes with the highest amount of risk involved out of any of the methods. Sites like Binance.com and WazirX are trading portals where you can buy and sell cryptocurrencies and store them in your digital wallets. A digital wallet that can store your cryptocurrencies would also be needed for this form of method. To create a wallet, choose from one of the various wallets supported by your trading portal for e.g. Exodus, Ledger Nano X, Ledger Nano S etc.
What’s Next For Dogecoin?
After Elon musk’s statement about not accepting bitcoin as a form of payment anymore, the cryptocurrency fell a huge 15% in market price. As more companies start accepting cryptocurrencies as payments, the promise of cryptocurrency starts to look brighter, and more practical. Recent rumours also suggest Xbox might start accepting Bitcoin as a mode of payment in the near future.
Once you’re ready to trade in $DOGE, you might want to check out what the best cryptocurrency wallets in India are.