Dogecoin Details Explained | Dogecoin vs Bitcoin | Dogecoin Price Prediction

Dogecoin Explained | Is Dogecoin Better Than Bitcoin?

3 Min Read |  May 31, 2021

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Dear Convey Warriors,

You’ve seen this face all over your Instagram and Facebook as the epitome of entertainment. It fits well with so many expressions that all of us have owned. Originally created as a joke, the cryptocurrency Dogecoin has recently been trending and the value has skyrocketed. 

From Elon Musk to Snoop Dogg, the list of celebrity supporters for Dogecoin is long! It is no wonder that everyone has been talking about it.

The hype is flattering enough for a lot of us to be inquisitive about the Joke Currency!

So, what is Dogecoin?

How was Dogecoin created?

How can you buy Dogecoin?

We have compiled all the details for you. Read on to find out.

The Birth of Dogecoin

Dogecoin is a product of cyberpunks. In 2013, IBM Software engineer Billy Markus and Adobe Software engineer Jackson Palmer decided to create a payment system as a joke. They wanted to make fun of the hype the cryptos were receiving. 

Little did they know that one day, their creation would take the world by storm!

On December 6, 2013, Dogecoin succeeded in increasing the circle of its online community. To the creators’ surprise, the Dogecoin market cap reached $39.94 billion as of May 24, 2021. 

Check out our other blogs to know more about Dogecoin:

How Does Dogecoin Work?

Dogecoin is a cryptocurrency, like Bitcoin and Ethereum. It is based on blockchain technology. Blockchain is a decentralised digital ledger that records all transactions made with a decentralised digital currency in a distributed, safe manner.

The Dogecoin blockchain ledger, which is regularly updated with all new transactions in the cryptocurrency, is carried by all holders in an identical copy.

You must be wondering, is Dogecoin safe?

Dogecoin’s blockchain network, like that of other cryptocurrencies, uses cryptography to keep all the transactions safe.

Miners are the people who use computers to solve complex mathematical equations in order to process transactions and record them on the dogecoin blockchain - a method known as 'proof of work'.

Do you know how Dogecoin miners are paid?

Miners receive additional dogecoin units in return for processing transactions and maintaining the blockchain ledger. They can either keep or sell on the open market.

What is Dogecoin Used For?

Dogecoin can be used to make payments and transactions, but it isn't a very good store of value.

This is mostly due to the fact that there is no lifetime limit on the number of dogecoins that can be mined, making the cryptocurrency extremely inflationary by nature. The blockchain compensates miners for their efforts by generating millions of new dogecoins every day.

This means speculative price increases in Dogecoin will be difficult to sustain over time.

Dogecoin Price Fluctuations Explained

SpaceX recently announced that it will accept Dogecoin as payment for the launch of an upcoming satellite called DOGE-1.

Elon Musk was the coin's most visible supporter, tweeting Dogecoin jokes and referring to himself as the 'Dogefather' in order to hype it up. To emphasise his point, he tweeted that SpaceX would place a literal Dogecoin on the moon.

Elon Musk Dogecoin Tweet

Dogecoin investors were in for a wild ride.

To read more about the Dogecoin Price Prediction, do check out our blog here.

The cryptocurrency crashed overnight after Musk joked about Dogecoin being a 'hustle'. This follows the fall after the Robinhood debacle and the spike in anticipation of Musk's SNL debut.

Musk also mentioned the environmental effects of Bitcoin mining in a Twitter post, which has been criticised by critics for being energy-intensive and harmful to the environment.

Cryptocurrency is a good concept on many levels, and we believe it has a bright future. But it cannot come at a great environmental cost.

There is bad news for crypto enthusiasts, dear readers, for the volatility and fluctuations in Dogecoin’s price are expected to continue for the foreseeable future.

According to Forbes,

Price volatility is going to be a part of the crypto ecosystem for the foreseeable future, and while it is easy to focus on those headlines it is even more important to look ahead to how the current success of crypto adoption can be continued.

Dogecoin vs Bitcoin

So, dear readers, now that you have read all about dogecoin, which one do you think is better?

In the battle of Dogecoin vs Bitcoin, who triumphs?

Check out the comparison below.

Dogecoin vs Bitcoin

In a recent interview with Goldman Sachs, Mike Novogratz said that Dogecoin is a passing fad that is likely to fade away because institutions aren't investing in it. 

It is unlikely to have long-term legs because no institution is buying it, and retail will lose interest at some point.

The future, thus remains uncertain for Dogecoin!

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