If you’re new to the world of cryptocurrency, then you’ve probably found yourself wondering “What is dogecoin”? This cryptocurrency has climbed a lot in value recently – even if it has a rather silly name, but what is Dogecoin and where did it come from?
Dogecoin crypto is a ‘memecoin’ – it was started as a joke, and its name is based on the Doge meme that is popular on Reddit and some other discussion boards. The currency has grown in value by more than 6,000 percent over the last year. It was started by Jackson Palmer and Billy Markus back in 2013, with the name based on Shiba Inu’s “Doge” joke. The idea was that it would be a parody currency, but it quickly gained traction as being another way of sending money online – just like Bitcoin it is a peer to peer currency. It is decentralised and it is anonymous and secure. In theory you can use it to trade, buy goods and services, or use it to avoid fees when sending money to people. One of the main uses for it is to ‘tip’ people who make posts that you appreciate on various message boards. It’s an ‘upvote’ that has real value.
Dogecoin is not a deflationary currency – there is no limit to the number of coins that could be produced. This means, in theory, that the value could remain stable. Getting started with the currency requires users to download a wallet, and then set up an account at an exchange to start trading. Like other currencies, it is volatile and there is no guarantee that the value will always go up. It is an inexpensive currency though so it could be interesting to see how its value goes over the coming months and years.
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