Cryptos found their own way in our community. Ever since the very first introduction of cryptocurrency, many variations of the cryptos popped up in the market. One of such inventions was Dogecoin, which initially was released as a joke, but sooner turned out to be a very popular and approachable alternative to Bitcoin.
The Dogecoin used more friendly purposes among the users and the popularity increased time by time. The Dogecoin was not supposed to be used for massive use, but somehow it managed to survive. The unique, vibrant, Dogecoin community has allowed Doge to achieve something of a cult following.
In order to understand more purpose in Dogecoin, it is important to know the base of it. Dogecoin Is Based on Litecoin Dogecoin is a cryptocurrency based on Luckycoin, which in return is based on Litecoin, the cryptocurrency standing not far from Bitcoin.
Dogecoin was originally designed to be a more approachable alternative to Bitcoin, Litecoin, and other cryptocurrencies. As such, there aren’t any groundbreaking features that set Dogecoin apart from the pack. As far as the crypto has not experienced any massive updates since 2015, no one really expected it to survive for a lot longer. Though it is still here in the market.
There are several reasons behind Dogecoin still being popular among the users, and those reasons do not necessarily represent the necessity of the additional crypto in the global market, but rather specific usages and niches.
Besides the fact that unlike any other crypto coins, Dogecoin literally represents one of the biggest memes in history, it should be said that Dogecoin is also used in some specific markets. One of the main purposes of storing the crypto asset is for online gambling.
While there are many online casinos that already accept different cryptos, the Dogecoins remain the ones that have been accepted widely and should be accepted for a longer time as well. The online casinos, which support overall cryptos, are eager to accept Dogecoins. You can also find some bonus for crypto deposits here, and check the online casinos which might be interesting for you, of course, if you hold any of the cute doggie coins.
Another reason is that Elon Musk, who is considered to be the real-life Tony Stark, genius engineer, supports Dogecoins and rumors say he holds some of them himself. This already makes the crypto appealing to the investors are individuals who want to buy cryptocurrency. The reason for supporting the digital asset is unknown, whether it is the love for dogs, or simply the kind will help the losing ones.
True Value of Dogecoin
The true value of Dogecoin lies in the strong and vibrant community that sprung up around it. The main thing that separates Dogecoin from most other cryptocurrencies is that it is an inflationary, rather than deflationary, cryptocurrency. Bitcoin and many other cryptocurrencies are designed with a hard supply cap of coins. The potential problem with this is that once the cap is reached it may no longer be profitable for miners to continue to sustain the system. This would either lead to unacceptably high fees in order to encourage miners or very long transaction times as there would be no incentive to process network transactions.
Miners are rewarded with Dogecoin. Dogecoin’s creator sought to solve this problem by ensuring that miners would always be rewarded with new Dogecoin and so there would always be an incentive to mine more coins. An inflation-based approach was also designed to replace lost coins and keep Dogecoin at a stable 100 billion coins.
Some facts to consider
Besides the reason for Dogecoin still staying afloat and the value of the crypto asset, there are some interesting facts about Dogecoin, which might attract your attention.
The inventor of the Dogecoin, Jackson Palmer, designed it to be a joke back in November 2013. Then, he was contacted by Billy Markus, and they decided to bring Dogecoin to reality. Dogecoin was designed to be a friendly, more approachable form of cryptocurrency that could reach users put off by the cold complexity of Bitcoin.
The Doge community has come together to create a charitable and friendly community, which would be able to assist the ones in need. Together they fulfilled several big projects and even managed to sponsor NASCAR.
One of the most common uses of Dogecoin still remains the tipping service. Users will tip other users for posts or contributions that they believe deserve recognition. Dogecoin is the “like” for the crypto reality.
Jackson Palmer left the project back in 2015. This is exactly the same period when the major technical updates and developments for the currency stopped. He declared that he was going on an “extended leave of absence”.
The Bottom Line
Just like any other cryptocurrency, Dogecoin is highly volatile and prone to large surges and big dips. It has a challenging history and has experienced some major downfalls and raises. The meme-based coin saw a surge in value in early 2018 as a number of media outlets began to pick up the story that Doge had hit a market cap of over $2.0 billion dollars.
Those are the stories that keep attracting new investors and traders to engage in profit-taking. Though, most of the trades are still followed by crushes. One way or another is to blame the miracle or cute dog face on the meme-coin, Dogecoin is still a thing, and let’s see how far it goes.