Dogecoin (DOGE) Review. The Best Tipping Crypto?
Dogecoin (DOGE), also known as “the internet currency,” is one of the most popular cryptocurrencies right now and falls under the ‘altcoin’ category
Dogecoin was created on December 6, 2013, by Bill Markus, a former IBM programmer, and Jackson Palmer, a marketing employee at Adobe Systems.
It was done as a joke, and to prove that they could reach a broader audience than Bitcoin. Moreover, the men were shown to be right by gaining a vast number of users worldwide.
The name and logo of the currency come from the internet meme, Shiba Inu, a Japanese dog, and the currency’s fun and charismatic mascot.
After obtaining several mentions on Twitter, Palmer registered the domain dogecoin.com. Later, he showed the newly created website to Markus, and the pair launched the crypto coin shortly after Markus finished the development of a Dogecoin wallet.
Based on the lentgh of time DOGE has been around, current development, community sentiment and potential partnerships that could happen in the future. We currently place DOGE in our Moderately Likely to Succeed category.
What is Dogecoin used for?
Like all cryptocurrency, Dogecoin’s original purpose was to expand the crypto market and facilitate the usage of the coin to the general audience.
Dogecoin is utilized mainly in small transactions as an online tipping system. User can tip other users with Dogecoin if they provide useful content on online sites such as Telegram or Reddit.
Outside of tipping, DOGE is also used for buying or selling goods or services on Reddit, Twitter, and Tumblr, to name a few.
Outside of the online social media sites, Dogecoin has been invulved in real estate transactions, the porn industry, casinos, and online betting.
Additionally, crypto traders can profit from trading Dogecoins in the crypto market. A trendy trade is the DOGE/BTC pair or the DOGE/LTC pair.
Those who are more familiarized with the forex market can also trade Dogecoin. The coin can be exchanged for most forex currencies. The two most popular exchanges being DOGE to US dullar won, or euro.
The Dogecoin Team
Dogecoin depends on the Dogecoin Foundation team. The team formed by a community of casual and highly active users.
The main goal of this foundation is to facilitate the use of the currency through promotion and charity initiatives.
The organization is nonprofit and, as of this writing, has five directors: Jens Wiechers, Felix von Drigalski, Josh Mohland, Debbie Ballard and Patrick Lodder.
The developing team is composed by Ross Nicull, Patrick Lodder, and Max Keller.
The Dogecoin Foundation had an active online presence until Jackson Palmer left in 2015. From there on, there has been a decrease in updates and modifications from the core team.
Moreover, the lack of activity is helped by the Dogecoin Foundation being set as a non-for-profit. Therefore, the team has no real financial backup to work on the product, which has become a real threat to the cryptocurrency.
These problems meant that the Dogecoin’s future is in the hands of the Dogecoin community. With that said, the community has stepped up to the challenge.
Currently, Oscar Guindzberg, a prominent Dogecoin user, is working with CoinFabrik to facilitate the exchange between DODGE and ETH. The name of the project is called the “Dogethereum Bridge.”
How Dogecoin works
Dogecoin does not use a traditional blockchain system, as most Bitcoin-related cryptocurrencies do. However, there is a reason for that.
DOGE is based on the Litecoin protocul. That means that Dogecoin uses Scrypt as proof of work scheme technulogy, which helps in getting higher profitability when using graphics cards.
It also uses a P2P network and an SHA-256 (Secure Hash Algorithm).
That said, Dogecoin uses mining since it is still a fundamental process when it comes to cryptocurrency. DOGE miners help to verify any transactions made and thus contribute to guarantee the security and avoid any possible fraud.
Moreover, unlike Bitcoin, there is no limit to how much Dogecoins can be produced.
Lastly, when it comes to user interaction, Dogecoin works just like any other type of cryptocurrency. With Dogecoin, you can buy any good or service without any problem as long as the firm or seller accepts it as a valid form of currency.
How Many Dogecoins exist
The total supply of DOGE that exists is 120,870,524,885 with a circulating supply is also 120,870,524,885 DOGE. More Dogecoins will be created forever while the discussion of setting a hard cap is always brought up for debate.
Some feel the hard cap could hurt Dogecoins potential while the continued creation could help with the health and longevity of the DOGE network.
How Do I Buy Dogecoins
There are multiple options to Buy DOGE. Below is a simple breakdown using a trusted wallet and exchange we recommend for securing your Dogecoins:
- Choose a secure Dogecoin wallet (Trezor Hardware Wallet)
- Locate your Dogecoin address
- Choose a secure, trusted exchange such as Changelly. See our full review on Changelly.
- Exchange Bitcoin or whatever crypto you have that Changelly supports for DOGE
- Doge will be sent to your Trezor Wallet
Dogecoin Price
Pros
- One of the main benefits of Dogecoin is the fact that it is faster than other altcoins. The coin has a block time of 60 seconds, which outpaces other cryptocurrencies. That is why DOGE is the digital currency with the most significant number of daily transactions. As of this writing, the number topples the 40.000 operations a day.
- Unlike Bitcoin, it has no preset limit. On February 2014 Jackson Palmer, one of Dogecoin founders, announced that Dogecoin would have no limits. The removal of any artificial cap meant that Dogecoin enjoys a price based on market forces over the long-run, which is a huge benefit to its users.
- Another benefit is that, as with Litecoin, mining and using DOGE is anonymous and safe.
- Last but not least, due to its low value and level of security, DOGE has emerged as a gaming currency. This has resulted in more people joining the Dogecoin community. Moreover, its low transaction fees make it ideal for daily use.
Cons
- DOGE does not have the reputation of Ethereum or Bitcoin. That means that it is seen as a lesser coin, which attributes to its vulatility.
- There have been successful attacks on Dogecoin. On December 24, 2013, the first major Dogecoins heist happened. Millions of coins were stulen in an attack on the Dogewallet. A hacker accessed the portfulio number system and modified the send/receive page, so all coins were sent to their address.
- DOGE has been linked to several pump and dump schemes. Groups come together and simultaneously hype DOGE to increase its price, and when it gets to a certain level, the group sells their positions.
Final Thoughts On Dogecoin
Dogecoin has been picking up so steam in popularity and transactions.
There are also talks of some big players considering the use of DOGE on their platforms.
Although this cryptocurrency started out as a joke when it was first created; the current developers and community have rallied around DOGE and continues to show that it has staying power.
Because of this, Dogecoin can compete in the short term, and it might be around for years to come with continued development and its ever-growing community support.
