We all know about Rupee coin and Bitcoin. Now there is another similar thing getting noticed and goes spoken more. That is Dogecoin. The value of rupee is based on Dollar currency and Bitcoin is based on Blockchain that promises to revolutionise the monetary systems around the world. But this Dogecoin is based on a meme. This coin was made in jest. In this blog, let’s see about this Dogecoin.
Someone took the Doge meme, the meme of this dog was quite famous at some time and a coin was made out of it. It’s like taking a ‘Akshay Kumar meme’ and creating a Akshy coin. It’s easy. Anyone can create it. Because cryptocurrency is so decentralised that any person can develop their own coin. They will need basic coding knowledge to do that. But the thing is that Dogecoin became so famous that, elite people like Elon Musk started buying it and promoting it.
After the popularity of Bitcoin, several people bought up its disadvantages. Like the long transaction time of Bitcoin. It that the whole process of Bitcoin mining consumes a lot of energy. And that is not good for the environment. That’s why some people considered making their own coins. These coins are called Alt-coins. i.e. Alternative coins (Named because they are alternative to Bitcoins). And they try to counter the disadvantages of Bitcoin. Examples: Etherium, Litecoin. But after Alt-coins had been developed, people realised that everyone can create their own coins. So people started creating their own coins for fun. But there was no advantages in their coins as compared to Bitcoin. Some scammers created their own coins and fooled people to invest in those coins. To drive the value of the coin, they followed Pump and Dump scheme. That is many people would put in their money and then the scammers take away their money. Then the people would suffer heavy losses and the scmmer would gain many. Some coins are created just for fun. These coins which were created without any reason are called as Shitcoins. Because they add no value to the world. They are not bringing any improvements to the process.
Some people believe that Dogecoin is also a Shitcoin. It was not created to scam people but just to make prank on people. It’s only for jokes. This doge meme was at the peak of its popularity in 2013. Jackson Palmer, an Australian marketer and Billy Markus, a software developer at IBM developed this Degecoin together then. Palmer says that he thought up this idea as a joke to combine two most popular things on the internet. Cryptocurrency and Doge meme. The code of Dogecoin is based on Litecoin. Litecoin is an Alt-coin that does have a few advantages over Bitcoin. Like lesser processing time and lower transaction fees. But the surprising thing is that the market valuation of Dogecoin has already surpassed that of Litecoin. If you look at the largest cryptocurrencies in the world, Dogecoin has become the fourth -largest currency.
Let’s discuss about this more in Part-2. Bye.! #stayhomestaysafe