What is Dogecoin | Doge
https://www.youtube.com/watch?v=LrqrA16tCWE
Transcript:
The Dogecoin is a cryptocurrency that started as a joke to make fun of Bitcoin in 2013, however, it has exploded in popularity in 2021, and it is currently the fifth largest cryptocurrency, with a market cap over $30 billion as of the time of this video. In this video, you will learn.
First, what is Dogecoin and how it works, the differences between Dogecoin and Bitcoin, and finally, how you can is dogecoin and how it works the differences between dogecoin and bitcoin and finally how you can buy dogecoin keep in mind that this video is by no means a financial or an investment advice first what is dogecoin the dogecoin is a one of thousands of cryptocurrencies available to buy right now that can be used to transfer money between people or to pay for goods and services.
Although its acceptance as a payment method is still limited, it is still hugely popular for investing purposes. The Dogecoin was launched in 2013 by Billy Marcus and Jackson Palmer, two software engineers who were friends on Reddit, but they had never met in real life.
It was developed as a way to poke fun at Bitcoin and got its name from the mispronounced Doge in the once popular Shiba Inu dog meme. In 2021, the Doge is no longer a joke. Its price went up by 5,000% this year, with a market capitalization of over 32 billion us dollars and 128 billion coin existing in the market right now so how does the dogecoin work the dogecoin operates on the blockchain technology similar to bitcoin and ethereum the blockchain is basically a history of all transactions made using a cryptocurrency.
This history of transactions is called a ledger, and this ledger is distributed among all partners of a network to verify and record new transactions to keep the blockchain secure. The verification of these transactions is done by solving complex mathematical equation called hash function or hash algorithm. Each blockchain has its own algorithm to use which is the s-crypt in the case of the dogecoin solving these algorithms require significant computational power and electricity the people who provide these computational power and electricity to verify and
record the transactions on the dogecoin blockchain are called miners every time these miners complete a new block of transactions and add it to the blockchain which takes about one minute in the case of doge they are rewarded with newly issued dogecoin which is how new doge coins are issued in the market a detailed video about the blockchain technology and how it works is coming soon.
Stay tuned and subscribe to our channel. It is worth noting that the Dogecoin blockchain is built based on the Litecoin blockchain technology and shares many features, with it like the unlimited market supply, which will be explained later in this video. So, you now know what is Dogecoin and how it works, but what are the differences between Dogecoin and how it works, but what are the differences between Dogecoin and Bitcoin? First of all, you need to understand that Bitcoin is a deflationary cryptocurrency by design. Simply, what that means is that there is a maximum number of Bitcoins in
the market that cannot be exceeded no matter what, which is 21 million coin in the case of Bitcoin. which is 21 million coin in the case of Bitcoin. The last Bitcoin will be mined in the year 2140. On the other hand, the Dogecoin has unlimited supply of coins, with about 10,000 new coin issued on the Dogecoin network every minute, meaning that each year 5,625 billion new Dogecoin is supplied to the market, which makes the dogecoin a inflationary cryptocurrency what that means is that the purchasing power of each dogecoin decreases
over time and the purchasing power of each bitcoin increases over time which theoretically makes it difficult for the price gains of doge to hold up over time however all of this is pure economics and doesn’t predict future prices in any way another difference between dogecoin and bitcoin is the transaction’s processing speed theoretically the dogecoin network is faster than bitcoin network by 10 times the dogecoin miners can complete a new block and add it to the blockchain in one minute. Bitcoin miners on the other side take ten
minutes to complete one block and add it to the blockchain. Keep in mind that the block size of the Dogecoin and the Bitcoin have the same size of one megabyte. The Dogecoin blockchain technology is capable of processing approximately 40 transactions per second, which is much faster than the Bitcoin blockchain, which is capable of four transactions per second which is much faster than the bitcoin blockchain which is capable of four transactions per second only however both of them is still much slower than
the visa network which can handle 1 700 transactions per second when it comes to transaction fees dogecoin transaction fees are much lower than bitcoin the The Dogecoin network takes about $0.62 per transaction as of the time of this video, which is very low compared to Bitcoin’s average of $3.5 per transaction.
When it comes to the technical differences between the Dogecoin and the Bitcoin, the main difference is the hashing algorithm used. Dogecoin used the script algorithm, and the Bitcoin uses the SHA-256 algorithm, which is more difficult than the script algorithm used by Dogecoin. So now, you might be wondering, why did the price of the Dogecoin skyrocket in 2020? After all, it was created as a joke, it doesn’t solve problems or offer new improvements to the market.
It is not a widely acceptable payment method like Bitcoin, it is not fast as Solana, for example. And it doesn’t offer any new features, like the smart contracts, like in the Ethereum blockchain. Many analysts attributed its rise to Elon Musk’s continued support and his tweets about its shoot, its price to new all-time highs, and his interest in it drives investors’ interest to invest in it.
Back in May this year, Elon Musk announced that he was hosting a Saturday night live episode. Soon after that, people expected that he will mention the Dogecoin in the show, which led to its price rising to $0. cents on the last Thursday before the show. However, during his appearance, he poked fun at the Dogecoin, saying that it is a hustle in one of the sketches.
This led to a quick significant price drop, as low as 40 cents hours after the show, despite him going back in the same sketch and saying that the Dogecoin is the future of currency, and it will take over the world. Let’s say that you have made your decision and want to buy some Dogecoin.
How will you do it? First, to buy any cryptocurrency, not just Doge, you need to create an account on a crypto exchange platform. Dogecoin is available to buy on Binance and on Coinbase. After that, you need to fund your account, which you can do by paying in crypto or in normal fiat currencies like the US dollar.
It is usually recommended to avoid paying with credit cards and pay via bank transfers to avoid the high fees on the transaction when paying with a credit card. If you are buying Doge for speculative trading purposes, you should open an account with an online brokerage platform, instead, like Robinhood, which allows cryptocurrencies trading. But keep in mind that you cannot send your crypto to another person or to your wallet off the app.
After you buy your Doge, it is recommended that you transfer it to a hardware or wallet, sometimes called cold wallets. This adds an extra layer of security for your crypto and protects your crypto assets from hacking, like the one that affected Coinbase this year.
