Dogecoin FAQ

Coinberry supports a wide range of cryptocurrencies like DogeCoin. As one of the coins we offer on the platform, we’ve browsed the web, scoured social, and found the top frequently asked questions about Doge. Let’s learn more about this fun and interesting project that continues to defy the odds.

What is Dogecoin?

doge-logo

Source: Dogecoin.com

Dogecoin is one of the oldest cryptocurrencies in the space, but it started as a joke. The founders, who fell in love with blockchain technology at the time, were inspired to replicate Bitcoin and create something with their name on it. 

They wanted to do this for fun. They chose a pet (Japanese Shiba Inu dog) to be the symbol, and DogeCoin was born. Dogecoin was (and still is) a meme coin, although it has reached both celebrity status in the crypto world. There are actual celebrities like Elon Musk who endorse the digital currency, along with real-world popularity due to the massive Dogecoin community behind it.

After nearly a decade, Dogecoin has evolved into a viable cryptocurrency that provides liquidity and interoperability within the ecosystem. Because of lower fees and influencer adoption, it has become a widely sought-after coin. 

What is the Native Token of Dogecoin?

The Dogecoin blockchain officially launched in December 2013. Just like Bitcoin and Ethereum, the Dogecoin network uses cryptography to secure financial transactions on the blockchain. And just like Bitcoin and Ethereum, it uses the proof-of-work (PoW) consensus mechanism, which requires Dogecoin mining.

The tokens that are then minted are called Doge (DOGE). This is the native crypto token of Dogecoin.

Dogecoin mining

So how does Dogecoin mining work? Since Doge is a cryptocurrency that uses blockchain technology, all Dogecoin transactions are recorded on its distributed digital ledger. Anyone that holds Doge – whether on a cryptocurrency exchange or in a crypto wallet – has a copy of the blockchain ledger. This is updated regularly, especially if a new Dogecoin transaction takes place.

Like other digital assets, the coin’s blockchain network relies on cryptography to keep Dogecoin secure. Miners – sometimes referred to as a Dogecoin node – use their computers to solve complex algorithms. This information is then recorded on the blockchain.

For using their computing power to process transactions, Dogecoin miners earn DOGE, which they can keep in their crypto wallet or sell on crypto exchanges. The project’s blockchain rewards miners for their work in creating new Doge every day, which makes it tough for the value of Dogecoin to hold up over the long haul.

Where does Dogecoin’s value come from?

Dogecoin’s value comes from how people perceive it. Having gained global attention in late 2019 and early 2020 when it was featured in several mainstream media outlets, Dogecoin’s strong community and real-life use cases have helped weather the volatile crypto market.

Who created DogeCoin?

Australian Jackson Palmer is the brains behind the DogeCoin project. He created the cryptocurrency out of his desire to create something other than Bitcoin or Ethereum. Dogecoin is now backed by a dedicated team of open source developers working on the Core and Dogecoin full Nodes on GitHub.

How Do The Tokenomics of DogeCoin Work?

Source: Dogecoin.com

At the time of writing, Dogecoin’s circulating supply is 132 billion coins, with no end in sight. It has an inflating supply instead of a deflationary one like Bitcoin. Proponents of Dogecoin maintain that its tokenomics makes it a viable currency because it allows for rapid growth while still being inflationary.

However, the point is not to argue whether or not deflationary tokens are better than inflationary ones. Instead, let’s follow this checklist to see if Dogecoin’s idealistic tokenomic construct actually works.

Allocation and Distribution of Tokens DogeCoin Tokens are mined.
Circulating Supply Regular increments of supplied tokens
Market Capitalization Increased Surge in Capital investments
Token Model Rewards miners for work done.

For a detailed breakdown of pitfalls to look out for in any successful project you can check here.

Dogecoin Foundation

The Dogecoin Foundation is a non-profit organization created by the community to aid in the development, security, and conservation of Dogecoin’s ecosystem (such as the domain and accounts), intellectual properties, furthering of charity efforts with Dogecoins and cryptocurrency more generally, as well as educating and researching on the potential for Dogecoin.

Unlike Ethereum and the Stellar Foundation, Dogecoin’s foundation has no authority over how many coins are produced or distributed. Before today runs out, approximately 15 million dogecoins will be mined, putting the total number of tokens at around 5 billion per year.

Dogecoin supported projects

Dogecoin core is behind projects like Doge Casino, Dogecoin Themed Car, Doge Tracker, and Doge Slot. These projects are inspired by the community and continue to grow as native projects on the Dogecoin ecosystem.

Two giant food chains – Burger King and Taco Bell – have expressed interest in Dogecoin technology and now accept it as a form of payment at their stores. Unlike many blockchain projects with millions of dollars in funding from Venture Capitalists (VCs), Dogecoin has not received any known investment round except a small equity crowdfunding round of $30k in 2014. 

How Many DogeCoin Tokens are in Circulation?

Source: coinmarketcap.com

Dogecoin is one of the few tokens with an infinite supply of tokens. Like the Federal Reserve or Central Bank can print endless amounts of money, so too can Dogecoin create new DOGE. Data regarding the current market cap of the cryptocurrency suggests there are currently 132-billion Dogecoins in circulation and counting.

If you want to purchase Dogecoins or learn more about the price of Dogecoin, you can do so here.

Dogecoin Wallets

We always want to play it safe when it comes to wallets, as they store your investments. While a cryptocurrency wallet on the web and play store claim to support a number of coins and other currencies all in one app, you’ll need to do your research and determine which wallet is best to store Dogecoin.

There are also wallets that let you buy and sell Dogecoin through a built-in crypto exchange. That means if you want to sell Dogecoins in exchange for other cryptocurrencies, you can do so right from the convenience of your Dogecoin wallet. 

Mobile Dogecoin software wallets and Dogecoin Paper wallets have had plenty of downloads and ratings at the time of this writing. So this could be a great place to start your research. Alternatively, coins purchased here on the Coinberry platform are secured.

Community Support/Social Media 

If you are interested in the Dogecoin project, you can take things further by joining the community groups and social media platforms.

  • Community
    • Reddit -https://www.reddit.com/r/dogecoin/
    • Discord -https://discord.com/invite/dogecoin
    • Telegram -https://t.me/TheDogeHouse
  • Social Media
    • Facebook -https://web.facebook.com/OfficialDogecoin/
    • Twitter -https://twitter.com/dogecoin
    • Instagram -https://www.instagram.com/dogecoin__official/?hl=en

Additional Resources

Want to learn more about DogeCoin? You can learn more about Dogecoin and get insights into this unique and exciting project.