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What is Dogecoin?
Dogecoin (DOGE) is a cryptocurrency that was first minted in 2013. Its mascot is the iconic Shiba Inu meme that orbited the internet's attention simultaneously, establishing DOGE's identity as a joke currency and, more recently, a meme coin. The geniuses behind Dogecoin are Billy Marcus and Jackson Palmer, who initially created Dogecoin as a satirical response to the ridiculous cryptocurrency market. However, the coin has since gained the internet's genuine attention, garnering the support of individuals primarily due to its various charitable projects—mainly in ending the global water crisis.
As a currency, DOGE's low price and affinity for entertaining the internet folk made it ideal for micro-tipping in online communities and forums. For instance, on the r/dogecoin subreddit, a weekly post called "what have you done this week to better Dogecoin?" allows users to share their contributions—ranging from memes to donation links for water projects that they've made significant progress on—and receive DOGE tips in return.
Dogecoin didn't experience much popularity in its early years but grew a cult following that allowed the coin to remain relevant despite the competitive market. The DOGE price experienced relatively steady growth until the end of 2020, from an initial value of $0.001 to finally breaking past the $0.02 mark. Things started to change when multibillionaire and Tesla founder Elon Musk began hinting at an interest in the joke cryptocurrency, posting a series of tweets alluding to Dogecoin.
DOGE was eventually swept by the 2021 bull market, where it was able to naturally grow to $0.06 in mid-April. However, when Musk revealed that he owned DOGE (and strongly advocated for the meme coin), prices quickly skyrocketed to an all-time high of $0.7 in mid-May, resulting in a massive breakout of DOGE millionaires. Dogecoin's success spearheaded the internet's obsessions for similar animal-themed coins, from SHIBA INU to MONA, a category that has been dubbed as "meme coins" for the less-than-serious intentions behind their creation.
After the bloody crypto sell-off in late May, fueled by Tesla's removal of its Bitcoin payments and China's industry-wide crackdown, DOGE has been hovering between $0.1 and $0.3, largely experiencing adjustments at an average Dogecoin to AUD conversion of $0.2.
The Dogecoin Market Cap
The market cap ranking is extremely important in determining each cryptocurrency's market domination, making it one of the best indicators for a coin's relevance in investors' minds. While DOGE remained out of the top of the chart for most of its lifetime, its recent surge—thanks to Musk's support—pushed it to as high as #4, beating competitors like Cardano (ADA) and Ripple (XRP). While DOGE has since dropped to #7, it still boasts a healthy market cap of over 26.5 billion and is above favorites like Uniswap (UNI), Polkadot (DOT), and Litecoin(LTC).
DOGE Token Security
The Dogecoin blockchain was modeled after Bitcoin's, but many of their fundamental features remain different. For instance, while both coins can be mined through the Proof-of-Work (PoW) consensus model, Bitcoin utilizes the power-heavy SHA-256 algorithm, while Dogecoin mimics Litecoin's more accessible Scrypt algorithm. Even so, mining on the Dogecoin network is competitive, and churning a profit is difficult without the help of Scrypt mining hardware.
This factor is beneficial to DOGE token security, as a large mining community increases the network's hash rate, making it extremely difficult to take down with a 51% attack—a phenomenon wherein hackers gain power over more than half of the network's mining capacity. As a result, Dogecoin remains nearly unhackable. Its largest fault in the security front is the lack of technical management compared to more "serious" blockchains, like Bitcoin and Cardano. However, DOGE is still technically a safe cryptocurrency to invest in, as it's a legitimate blockchain—proven by its nearly decade-long existence.
Unique Features of Dogecoin
The cryptocurrency sphere can be serious to a fault. But Dogecoin breaks the competitive and highly technical barriers of entry by presenting itself as a genuinely lighthearted and honest personality amid a sea of straight-laced players. Despite being initially created as a joke, the internet has fallen head over heels with Dogecoin, which has since grown a community of supporters that enjoy its existence in the world of cryptocurrencies. DOGE's lightheartedness and penchant for helping others through the Dogecoin Foundation is a unique feature that sets it apart from the rest of the market.
From a technical standpoint, Dogecoin also beats Bitcoin currency—its likeness—in transaction processing speed and scalability. The network's security is bolstered by its natural inclination toward small block times, allowing miners to produce new blocks and generate coins faster than Bitcoin. This advantage allows the Dogecoin blockchain to grow at a much quicker rate, in turn making it easier for more transactions to be processed over time without extensive fees or long waiting periods.
Who Are The Founders of DOGE?
Billy Markus and Jackson Palmer are the two brains behind Dogecoin. Both were software engineers from two sides of the globe—Markus worked for IBM in Oregon while Palmer for Adobe in Sydney. Markus had jokingly tweeted about how investing in Dogecoin would be the next big thing, attracting Palmer's attention and turning DOGE into reality ten days later. But it wouldn't be until eight years later, in 2021, before Dogecoin officially became the "next big thing."
How Has Dogecoin Performed Over the Years?
Despite starting off as a joke, Dogecoin was quickly able to round up a following of meme-loving individuals, giving it a spot in the micro-tipping sector in online communities—hubs that bring the internet together for memes and slightly serious discussions. Price-wise, DOGE skipped most bull markets prior to 2021, paving through a slow and steady gain even amid the 2017 bubble. But from December 2020 to mid-May, DOGE was able to rally 17,400% in gains—its largest climb in history.
What Triggered Dogecoin's Surge
Elon Musk's tweets were the culprit for Dogecoin's sudden rise from the shadows, prompting the massive surge in DOGE's value and the market's scramble for other potential meme coin sensations. On Twitter, the billionaire labeled himself as "The Dogefather" and posted a series of memes in early 2021, eventually forcing DOGE to break past the $0.7 all-time high right before Musk appeared as a guest for Saturday Night Live. Even after the cryptocurrency sell-off in late May, Musk strongly vouched for Dogecoin—over more realistic choices like Cardano crypto, which tried to court the billionaire but failed—as a sustainable alternative to Bitcoin.
Which Blockchain Network Hosts DOGE?
DOGE is the native cryptocurrency to the Dogecoin blockchain, which is an independent blockchain—like Bitcoin and Litecoin crypto—that isn't hosted by a third-party platform.
What Are The Minimum And Maximum Withdrawal Amounts?
DOGE withdrawal limits vary between exchanges and wallets, which also impose different policies for each coin. Therefore, it's best to check the platform you're using for the specific minimum and maximum DOGE withdrawal amount if any.
Is DOGE Wallet Available For Both Android & IOS?
The official DOGE wallet is supported on Android devices but not iOS. However, Apple users can still enjoy the app through macOS, as well as Windows and Linux.
Which is The Best Doge Wallet?
Dogecoin used to only be supported in a handful of wallets, so most investors used the official app to store their DOGE. However, its recent market breakthrough has attracted larger platforms, including Coinbase and hardware options, to support DOGE transactions—a convenient alternative if you prefer to store all your coins in one wallet.
What Are The Differences Between DOGE and BTC?
DOGE was created as a joke to make lighthearted fun of Bitcoin, which had started gaining traction in 2013—putting it at the center of many internet memes. The Dogecoin blockchain was modeled directly after Bitcoin, with a code almost completely the same that it took founders Billy Markus and Jackson Palmer only a few days to complete the development.
However, a few key differences include the lack of a built-in scarcity in Dogecoin, which doesn't have a maximum supply capacity, unlike Bitcoin's 21 million—subsequently making it more difficult for DOGE to significantly grow in value. Bitcoin was also founded to be a serious response to the unfair financial ecosystem, making it a more serious project with a robust community—though Dogecoin has recently started becoming serious as well. Finally, mining the two cryptocurrencies is slightly different. DOGE is easier to mine due to the more accessible Scrypt algorithm behind its consensus model, resulting in faster transactions on its network.
Are DOGE Transactions Anonymous?
The Dogecoin blockchain ensures that all DOGE transactions are anonymous. While transactions can be publicly traced through its peer-to-peer and open-source network, no names or identities are involved in any part of the process.
Can DOGE be Hacked?
Theoretically, it's possible to hack any cryptocurrency as they live in the online realm. However, DOGE is almost impossible to hack due to its high network mining activity, which processes transactions quickly, making it difficult for hackers to find an opening. Moreover, the high mining hash rate means that hackers would need significant power and funding to execute an attempt to attack the network, which is realistically impossible.
Is DOGE a Good Investment Opportunity?
The DOGE price AUD grew due to the hype surrounding meme coins, making its value highly speculative and prone to the opinions of influential figures. And because the blockchain was built as a joke, it lacks a development ecosystem that could help Dogecoin complete larger projects and become more useful in today's competitive market. However, all these issues can be remedied, especially due to the new attention surrounding the network in mid-2021.
DOGE's high market cap also puts it in a favourable position for most investors. So while DOGE may not be the safest option in the market, it still has potential as an investment opportunity—but without guarantees, like all other coins on the market.
Can I Buy DOGE With PayPal?
You can purchase DOGE with PayPal from an exchange that supports this payment method, such as eToro.
How Can I Buy a DOGE With My Credit Card?
To buy DOGE with a credit card, you first need to visit any cryptocurrency exchange that carries Dogecoin, such as Coinbase. Then, select a credit card as your payment method and directly purchase DOGE or any other cryptocurrency!
Will Dogecoin Reach $1,000?
Experts believe that it's highly unlikely for the DOGE to AUD conversion to ever reach $1,000 due to its lack of scarcity, making it an always-available resource that can't generate as much value as scarce predecessors like Bitcoin and Ethereum. However, some analysts believe that DOGE has the potential to reach $1 and possibly even $10 within the decade. However, do note that forecasts may change periodically depending on market behaviour.