Dogecoin – The Complete guide

Ever wondered what Dogecoin is all about? In this article we will discover the complete history and the philosophy behind this fun and amazing crypto currency. 

Dogecoin is a meme based cryptocurrency that has been taking the world by storm and will continue its digital rampage for much longer than anyone could have ever predicted. A darling of Elon Musk, this extremely fun and inclusive crypto currency is set to open the doors to blockchain technology for many newcomers. Most of us don’t realise how important it actually is. So let’s remove our mental leash and muzzle and get you up to speed on everything DOGE. Or in the Dogecoin lingo: “So knowledge” “Much learn” “WOW”! 

Memes and crypto 

 

 

Let’s face it. There is nothing more “real” and visceral than images and symbols. After all, our lives are influenced by them on a daily basis, even on a subconscious level. Going from company logos, to religious symbols, an image conveys a direct message that cannot be misinterpreted just like words and languages. More often than not, misinterpretation of words leads humanity to wars and catastrophic events. 

This is exactly why Memes and GIF’s are so popular in our digital interconnected world. Regardless of our cultural background and language, memes simply unite people. From the earliest period of the internet we have seen the rise of Badgers, the famous anime girl spinning a leek and singing the Finninsh Levan Polkka and even rage comics depicting pretty much the whole collection of human emotions. Memes are spread like wildfire and take the internet by storm. But most importantly, they are very memorable and just like religious symbols they are carved into our brain forever. 

Regardless of your age and your level of “tech-savviness”, the very best way to understand the internet, is to understand the meme culture that thrives within its digital nethers. Even retired people are communicating emotions via GIF’s, emoji’s and memes these days. 

In order to understand Dogecoin it helps to spend a few minutes browsing through old school meme culture. Not only will this be insanely entertaining, but you’ll learn a lot in the process. Now that you are up to speed on this, let’s see how Dogecoin was created. 

Birth of Dogecoin

 

 

Pretty much ALL of the current economic problems are the direct result of the 2008 global financial crisis. People were so furious at the banks and governments, that just 1 year later we saw the birth of the big Daddy Bitcoin as a result of all that financial madness. To say that the world has never been the same ever since would be an understatement. 

Traditionary all new technology has been first adopted by people involved in unsavoury and even illegal activities. This was always one of the best ways to avoid the iron fist of the law and just like pagers and cell phones, Bitcoin was no exception. The very first widespread global use case for Bitcoin was off course on the infamous Silk Road marketplace that dealt with everything from illegal drugs, stolen credit card information to fake passports and currencies. Business was booming and Bitcoin was travelling the world from buyers to sellers. Pretty much early adoption in action. 

When the Silk Road marketplace was eventually shut down by the FBI, the media descended on Bitcoin with all of their wrath and negativity. Needless to say it seriously hindered the development and adoption of ALL crypto currencies in the process. For many cypherpunks and fans of Bitcoin this massive tsunami of negative news was truly devastating. Eventually the negative news died out, yet Bitcoin still remained in the shadows as an undiscovered digital outcast. 

Something changed on February 23rd 2010, when a picture of a smiling Shiba Inu dog ( posted by a Japanese woman ) went viral on the internet and truly took over the hearts of millions. The legend of the DOGE meme was born! Just google DOGE and see for yourself. 

Nothing infuriates a seasoned internet veteran more than seeing the “crimes against calligraphy” that is the “Comic Sans” font. Yet it’s exactly the use of this funny and colourful font, merged into hilariously simplified sentences, that gave the Doge meme such worldwide recognition. Sentences in broken English, usually ending in an excited “WOW!” accompanied the Doge meme wherever it was visible. People loved it and still do until this day. Again the memes are branded into our mind forever. 

After the Silk Road debacle, 2 regular dudes named Billy Markus and Jackson Palmer ( encouraged by numerous online communities ) have set out to create a fun and simple cryptocurrency in order to liberate Bitcoin from its shady past. Their goal was to simplify the technological barrier to entry for anyone who’s interested in Bitcoin and blockchain tech. After much input from different online communities, on the 6th of December 2013 Dogecoin was finally born. Billy and Jackson couldn’t have ever imagined what kind of digital genie they just released from the bottle. Let’s dive deeper into the mechanics of Dogecoin and how it all works. 

Dogenomics – How it all works

 

 

Doecoin is completely based on the existing cryptocurrency called Luckycoin and shares a lot of similarities with Bitcoin itself. Originally the Dogecoin total supply was limited to 100 billion coins, but after careful consideration the total amount of DOGE was programmed to be infinite. This was done intentionally out of consideration for the ease of use and future adoption. Dogecoin has been designed to be cheap and plentiful. After all, our central banks that run the presses also never keep an unlimited supply of currency and flood the world with it for decades. 

If we analyse Dogecoin’s technical side, the proof of work mining happens on the Scrypt algorithm that Litecoin is so famous for. While you can’t mine Dogecoin directly, you can of course “merge-mine” it together with Litecoin. This is done in the same way as silver is mined mostly as a byproduct of gold and copper industry. In the early days this caused an interesting phenomenon whereby the miners organised “faucets” where people could receive tiny amounts of free Dogecoin on a daily basis. If you’re wondering, yes these faucets still exist today, but we don’t recommend using them due to countless scams. 

As you can imagine, having access to such a cheap “byproduct” cryptocurrency, the possibilities are truly endless. Also let’s not forget the power of Memes ( if you forgot already, please revisit the first chapter ). The amazingly popular and fun nature of Dogecoin has attracted quite a following straight away. The price of DOGE jumped 300% in the first few weeks of its existence. This small snowball has begun its cascade into a true online avalanche. 

After the 2020 meteoric rise of DOGE, many wonder where this crypto-joke actually gets its value from? To answer this question, let’s explore the secret sauce that makes DOGE such a beast. Pun intended off course. 

Strengths and weaknesses of Doge 

 

 

When it comes to the crypto currency space, the difference between functionality and value is enormous. This is exactly why most people fail to understand Dogecoin. Many investors and newbie speculators are piling into DOGE just to make a quick buck, without even doing their homework ( called: due diligence ). To a crypto-veteran this is starting to smell awfully bubbly. To your great grandfather this would smell a lot like the roaring 1920’s. 

You see from the beginning DOGE was adopted by many online communities who fell in love with the friendly and fun nature of this coin. The fast and cheap transactions, combined with an unlimited supply of coins made it an ideal TOOL for various awesome projects. The most famous DOGE community ( on Reddit ) quickly adopted this coin for tipping and even organising charity events. 

It’s no wonder that many good deeds have been financed using Dogecoin. For example the awesome Reddit community sponsored a Nascar competition, sent the Jamaican Bobsled team to the olympics and even organised ( and still organises ) charity events for the homeless. All this is possible with a cheap, fast and fun coin that has a max supply of all the stars in the universe. Even when some users lost the private key to their Dogecoin wallets, the friendly community piled in and sent these unfortunate souls some Doge to help them out. Truly selfless acts in action. Needless to say, the Doge community on Reddit is hands down the most friendliest, helpful and welcoming community out there. Yours truly has learned about cryptocurrency back in 2014 largely with the help of this amazing online clan. 

Now off course not everything is “wow” in the Dogecoin world. There are definitely some drawbacks that a prudent investor needs to be aware of. For example, just like many ghost-chains of the 2017 bull market past, Dogecoin doesn’t have an active development community, meaning nobody is actually ensuring that DOGE is working properly. Somehow until this day it somehow does. The native Dogecoin core wallet still looks like a relic ripped out of a Windows XP interface. There’s also a matter of infinite supply of coins, that in comparison to Bitcoin doesn’t look good in the grand scheme of things. Finally there is of course the hype! You see, smart investors never chase a shiny rocket that has already taken off. They get on board well in advance before the rocket even starts to be filled up with liquidity. Naturally this leads us to the question: Is Dogecoin a good investment? 

Is DOGE a good investment? 

 

 

Short answer is; No! What the hell is wrong with you?! But seriously, let’s clear up one very important detail once and for all: Dogecoin is NOT an investment. Dogecoin is a TOOL. In fact for newcomers to the crypto space, it’s THE tool to get you started in a friendly and comfortable environment that won’t make you feel like an inferior technosaurus rex in the eyes of the seasoned blockchain veterans. 

Using DOGE you can make extremely fast, cheap and easy transactions that will pretty much fly under the radar of the regulators. There are currently no blockchain analytics companies that are tracking the Dogecoin blockchain. This cannot be said of the big daddies like Bitcoin and Ethereum. These chains are scanned and sniffed by Chainalisys and similar data vacuum cleaners every second. Using Doge for cashing out into fiat currency is a breeze. 

If you are completely new to blockchain, the insanely awesome Dogecoin community will be very patient and explain to you all the basics and will get you started using this tech in no time. You’ll master the somewhat confusing lingo, learn to use proper protection and will even learn how to use the Dogecoin paper wallet. How cool is that?! 

This being said, by now it’s pretty much an open secret that Elon’s social media Musk is all over DOGE for the foreseeable future. The hype is real and without a doubt it will grow larger with time. For the quick and fearless gunslinging speculators Dogecoin is an ideal vehicle to live out their market wizardry, however for the long term Hodler it’s a difficult choice to make. We are in a raging bull market and many coins with solid fundamentals are simply crushing it. Prudent long term investors like to conduct thorough due diligence on potentially interesting investments and sadly at the moment Dogecoin is not it. Of course that won’t keep the all mighty smiling Shiba Inu from conquering the world. That, we can be sure of.