What Is Dogecoin?
Dogecoin is a cryptocurrency created by software engineers Billy Markus and Jackson Palmer, who decided to create a payment system as a “joke”, making fun of the wild speculation in cryptocurrencies at the time. It is considered both the first “meme coin”, and more specifically the first “dog coin”. Despite its satirical nature, some consider it a legitimate investment prospect. Dogecoin features the face of the Shiba Inu dog from the “doge” meme as its logo and namesake.
Background
Software engineers Billy Markus and Jackson Palmer launched the satirical cryptocurrency in 2013 as a way to make fun of Bitcoin and the many other cryptocurrencies boasting grand plans to take over the world. With the help of Reddit, the site became an instant hit. Within two weeks, Dogecoin had established a dedicated blog and forum, and its market value reached $8 million, once jumping to become the seventh largest electronic currency in the world.
How It Works
Dogecoin operates on its own dedicated blockchain, which records all transactions and uses cryptography for security. Transactions are processed and recorded on the blockchain by miners who solve complex mathematical equations, a system known as proof of work. The miners earn Dogecoin for their efforts, which they can choose to keep or sell.
There is no limit on the number of Dogecoins that can be created through mining. The blockchain creates millions of new Dogecoins daily, which makes it difficult for the cryptocurrency’s speculative price gains to remain stable over time.
Key Takeaways
- Dogecoin is a cryptocurrency created by software engineers Billy Markus and Jackson Palmer as a humorous response to the surge in cryptocurrency speculation.
- It is known as the first “meme coin” and features the face of the Shiba Inu dog from the “doge” meme as its logo and namesake.
- Despite its satirical origins, some people consider Dogecoin a legitimate investment prospect.
- The currency reached a peak market capitalization of over US$85 billion in May 2021.
- Dogecoin.compromotes the currency as the “fun and friendly Internet currency” and it quickly developed a significant online community.
