What is Dogecoin

Dogecoin (DOGE) is an open-source, peer-to-peer cryptocurrency that distinguishes itself from the majority of the digital currency market with its jokey nature and Shiba Inu dog logo. Notable features of DOGE, which uses the scrypt algorithm, are its low cost and unlimited supply.

History of Dogecoin

Jackson Palmer, a product manager at Adobe Inc.’s office in Sydney, Australia, created Dogecoin in 2013 as a way to satirize the hype surrounding cryptocurrencies. After receiving positive feedback and interest on social media, he bought the domain dogecoin.com.

Billy Marcus, a software developer at IBM, wants to create a digital currency but is having trouble promoting his efforts. Marcus teamed up with Palmer to create the software currently behind Dogecoin.

In early 2021, Dogecoin gained cult status in the WallStreetBets section of Reddit – the main instigator of the GameStop affair in January of that year – where enthusiasts promised to shoot up its value significantly (this was before all cryptocurrency discussions were banned in that subreddit).

By May 2021, Dogecoin reached its highest value of $0.68, compared to a value of just under 1 cent at the beginning of the year. Tesla CEO Elon Musk was at least partially responsible for the huge rise after calling Dogecoin his favorite cryptocurrency. By mid-2021, Dogecoin consistently ranked among the top five cryptocurrencies by total market capitalization.


Marcus based Dogecoin’s code on Luckycoin, derived from LTC, and originally used a randomized block mining reward, although, in March 2014, it was changed to a static reward. Dogecoin uses Litecoin’s scrypt technology and is a coin that is mined using the proof-of-work (PoW) mechanism.

Through the mechanism in question, miners use computers to solve complex mathematical equations to process transactions and record them on the blockchain. In exchange for maintaining the blockchain, miners earn additional tokens, which they can then hold or sell on the open market.

Dogecoin can be used for payments and purchases, but it is not a very efficient store of value. This is mostly because there is no limit to the number of DOGE tokens that can be created through mining – meaning that the cryptocurrency is highly inflationary by design.