Dogecoin has become the latest ‘hot item’ in the world of digital currencies. It was launched in late 2009 and is currently the third most widely used virtual currency after the Euro and the US dollar. Dogecoin is derived from the Doges, a North African tribe that are well known for being traders. The coins they trade are based on the value of a dog-eared leaf. While there is much hype around this new virtual currency, it may be worth learning about before investing.
Dogecoin was designed as a “Litecoin” alternative. It differs from other Litecoins because it uses a different algorithm to determine how many doges are produced per block. Dogecoin isn’t like other Cryptocurrency systems in that it doesn’t have a built-in banking system or any type of market for trading. Its trading style is more akin to a poker game than anything else.
Unfortunately, many people have become attracted to dogecoin because of its novelty value. Many people see it as a cheaper alternative to actual money because it is “lazy” in the sense that it is “minted” on a computer. Many people also think it is more secure than the euro or the dollar. These are all good points. But do you really need to invest in this alternative virtual currency?
Like many other cryptosystems (such as Dash), dogecoin was designed as an “alt coin”. This is a type of alternative to the mainstream currencies. For instance, Litecoin and Peercoin are both alt coins. But what makes dogecoin different is that it acts more like a pure decentralized asset like gold. Unlike other cryptosystems, it actually has its own supply chain and proof-of-work system that set it apart from others.
Dogecoin is “degenerated” (not lost) money relative to other existing alternative currencies. This means that dogecoin will not be worth much if it disappears. Unlike gold, which can be “depreciated” with time, a currency will lose value if it is no longer used by its users. However, the upside is that this new kind of alternative currency actually grows in value as people get to know about it and start investing in it. Because of this, dogecoin has actually become one of the fastest-growing forms of Cryptocurrency in existence right now.
One of the main reasons why dogecoin has become such a popular choice among the masses is because of its unique branding as the internet Meme of the year. The website DogeBoat is actually responsible for this branding opportunity. The website allows users to download a custom design for their personal computer that combines a nosebag with the background image of a Shiba Inu dog. In order to complete this design, the dogecoin “bags” are sewn together forming a dogecoin dog. The popularity of this odd-looking item has brought about a whole new set of dogecoin products that are associated with the Doggie Bag Trend.
Dogecoin has also managed to gain some traction as a sort of digital currency due to its relatively low fees compared to other available virtual currencies in the market. Compared to PayPal, eBay, and others, dogecoin has a transaction fee of just two percent making it a much more affordable way to buy and sell items online. This low transaction fee has led to more people finding interest in the cryptocoin thus bringing about more dogecoin traders and users that will lead to further growth in the future.
Dogecoin has truly become something special this January. It has quickly established itself as an internet Meme of sorts and has even been featured in some popular news publications. It is an internet sensation that is here to stay for the foreseeable future. With many exciting and creative new dogecoin applications being released in the upcoming months, we can only expect this trend to continue. With many exciting free dogecoin games and activities, it’s predicted that this virtual currency will continue to grow.