Welcome to the latest podcast episode! Say, were you around for the viral crypto meme? Which one? Well, the cryptocoin that was released as a meme and ended up becoming quite the legit thing.
That’s right – today’s episode revolves around a particular crypto coin known as the Dogecoin. Let’s get into what this is and how Elon Musk ended up making it as legit as Bitcoin.
What Is Dogecoin?
Dogecoin is represented by a Shiba Inu. If this breed of dog seems to remind you of another cryptocoin, that would be because the other meme coin, Shiba – also gaining massive popularity in recent times – was made as a reference to the Dogecoin.
In 2013, Dogecoin (DOGE) was founded as a fun alternative to existing cryptocurrencies such as Bitcoin. The Shiba Inu emblem and moniker are based on a meme. This was created by the software developers and online friends Billy Marcus and Jackson Palmer.
Unlike Bitcoin, which was created with a limited quantity in mind, Dogecoin is supposed to be widespread, with 10,000 new coins produced each minute and no cap on the total amount.
Dogecoin can be used to make payments and purchases, but it isn’t a particularly good store of value. This is primarily due to the fact that there is no lifespan limit on the number of Dogecoins that may be mined, making the cryptocurrency highly inflationary by design.
The blockchain compensates miners for their efforts by producing millions of new Dogecoins daily, making speculative price rises in Dogecoin challenging to sustain over time.
The Dogecoin blockchain record, which is frequently updated with all new transactions in the cryptocurrency, is carried by all holders in an identical copy. The blockchain network of Dogecoin, like those of other cryptocurrencies, uses encryption to keep all transactions secure.
Miners receive more Dogecoin in exchange for processing transactions and supporting the blockchain ledger, which they may then keep or sell on the open market.