Dogcoin, a meme-based cryptocurrency, saw its price rise by 50% between May 4th 00:00 and May 5th 15:00 UTC. It maintained this growth momentum despite the most common cryptocurrency, bitcoin, plunging 5.7% in the same time frame.
The surge caused the Robinhood trading app in the U.S. and the WazriX trading platform in India to crash.
Dogcoin originally started as a joke in 2013 when it was MEME about dogs. its value has appreciated several times in the last year and its community believes it will break the $1 mark before the end of the year. It was trading at $0.50 on May 9, 2021 at 4:28 a.m. UTC, when Elon Musk appeared on his “Saturday Night Live” show and Elon mentioned dogcoin.
Elon said on SNL Dogefather that dogcoin is the future of cryptocurrency and a financial instrument that will take over the world. He added that although dogcoin started out as an Internet MEME, it has now become popular in a very real way. He asked the show’s co-artists to refer to themselves as “Dogefather”.
This article is not official financial advice and here we will explore.
- How is the Dogcoin ecosystem different from other crypto assets?
- How to get Dogcoin and/or start mining?
2.1 How to start earning dogcoins using your computer/laptop
2.2 How to start Dogcoin mining from your computer
2.3 Start with Dogcoin Cloud Mining
- Three main reasons why people should focus on this field
3.1 Sincere and pure pedigree
3.2 Strong community with influential people like Elon Musk backing dogcoin
3.3 Increasing real-world acceptance
4.Can this phenomenon be sustained?
01 How is the Dogcoin ecosystem different from other crypto assets?
Dogcoin was created by Billy Markus, an IBM software engineer, and Jackson Palmer, an Adobe software engineer, who decided to create a payment system that is instant, fun, and free of traditional banking fees.
It is an open source peer-to-peer cryptocurrency, and its first block was mined in December 2013. Within the first 30 days, their official website attracted more than 1 million visitors.
“Doge” or Shiba Inu is their mascot, which was popularized through the web meme.
They have a functional wallet that is available in three versions: Multidoge, Dogecoin Core and Dogecoin Android wallets.
MultiDodge is a lightweight wallet that offers fast syncing. Dogecoin Core is a full wallet that can be synced by downloading the wallet in system space. Both wallet versions are available for Windows, Linux and macOS, but if you plan to mine Dogecoin, then you need to set up a “Dogecoin Core” wallet. They also have a “Dogecoin” Android e-wallet app that has been downloaded over 1 million times.
Using these wallets, you can send money from Mumbai to Melbourne in seconds without any middleman.
As of 5:00 a.m. UTC on May 9, Dogcoin’s market capitalization reached $68 billion.
Despite its great success, Dogcoin was never considered to have much intrinsic value. It is derived from the open source project Litecoin. therefore, there is no limit to how many tokens can be produced in the system. As a result, there is no cap on supply. In contrast, the existing supply of bitcoins is limited to 21 million and its supply side is also limited to that number.
As of May 9, 2021, 5:00 AM UTC total dogcoin supply reached 129 billion. According to CoinMarketCap, this number will continue to rise. The supply of dogcoins could increase by as much as $5 billion per year, meaning that people are encouraged to actively use and spend them as a currency, rather than making them just another traditional crypto-digital asset.
The headline statement on the official DOGE website reads “1 DOGE = 1 DOGE”, indicating that the DOGE community believes the token should be used as a trading currency and not just as an investment or speculative asset.
The predictable annual supply of 5 billion dogcoins represents an annual inflation rate of about 4%. However, as more and more tokens are mined over time, the difference of 5 billion tokens will become smaller and smaller compared to the total number of tokens in circulation. So, in theory, it could end up being a fairly stable currency with very smooth inflation over hundreds of years. This is because the number of new tokens in circulation is predictable from year to year.
But this is entirely dependent on individuals and businesses adopting it as a further form of payment. Otherwise, the value of dogcoins may decline as more dogcoins enter circulation. Currently, over 1,300 retailers accept Dogcoin.
02 How do I get Dogcoin and/or start Dogcoin mining?
2.1 How to start earning Dogecoin using your computer/laptop.
Step 1: Install the “Dogecoin Core” wallet for your Windows, Mac or Linux computer on the DOGE homepage. It will take some time to synchronize and reflect the updated wallet balance. However, once the Dogecoin Core wallet payment address is installed on your system, you will be able to start receiving payments.
Step 2: Once you get the Dogecoin wallet payment address, you can start earning some dogecoin by joining its Reddit community, where other users can use inline commands to recommend tips to other users using dogecoin. For example: + / u / dogetipbot 150 Doge
Another way to earn dogecoin is to join Folding@Home (FaH), a distributed computing project at Stanford University, and its community team Dogecoinfah, which runs a bot that offers weekly rewards based on completed computational work units. By joining FaH, you will have the power to compute to help scientists find cures for diseases and get some dogecoin for your work. This is the approach we will explore in subsequent steps.
FaH has a graphical user interface and is therefore easy to use. It runs in the background of your machine and helps scientists study neo-coronavirus, Alzheimer’s, Huntington’s, Parkinson’s and many other diseases to help them find cures for these diseases.
In April 2020, The Guardian reported that Folding@Home (FaH), run by volunteers, had created the world’s fastest supercomputer to fight coronaviruses.
Step 3: To join the program and receive the Dogecoin reward, install the Folding@Home software for a Windows, Linux or Mac OS-based computer, then configure the Dogecoin Core wallet payment address as the folding username and set the folding team to 226715 (Dogefolders) under the folding identity under.
Step 4: If you have configured a “key” using your FaH account identity, you will receive bonus points. To set up a key, visit the key creation page of Folding@home. Here you enter your Dogcoin wallet address as the fold name, enter your email address and click on the “Get Key” button. The key will be sent to you via email. Enter the key in your identity profile to receive bonus points. You can learn more from Folding@home’s Passkey guide.
Once you have updated all the above fields under the online FaH client interface under your identity, you can start receiving Dogecoin as a reward for work units completed by your machine.
Step 5: The automated reward distribution system DogecoinFah pays out weekly contributions of Folding Team Dogcoins (usually CST Saturday nights). Volunteers must confirm that they have a valid DogecoinFah wallet address as the folding username and are folding #226715 for Team Dogefolders.
The automated system combines multiple rewards into one weekly expense. For each computational work unit completed using your computer, the FaH system will give you some points that will be added to the Dogefolders team’s total points.
Some rewards provide more dogecoin for team members who complete more units of work and contribute more points to the team by folding more, while other rewards provide some dogecoin for each team member who folds and earns any points before the weekly payout.
I have noticed that some work units can take up to a week to complete, but they will also give you more rewards.
2.2 How to start dogcoin mining using a computer
Like other cryptocurrency mining, dogcoin mining is the process of being rewarded with new dogcoins by confirming and recording new transactions or blocks on the dogcoin blockchain.
Dogcoin mining is like a lottery system. Many computers (nodes) work on the same block at the same time, but the node that adds the new block to the old blockchain is the one that wins all the newly minted tokens.
To increase the chances for beginners to get new minted dogcoins faster, it is recommended that you mine in a mining pool.
If you are a Solo miner as a node and complete a new block transaction on the chain, you will receive the full reward, but merge blocks more frequently because they have more computing power behind them. So it can take a few months before Solo miners complete their first block and see some returns.
However, when you mine in a particular pool, the tokens earned are distributed among the pools, so you only get a small percentage of the total reward and have to pay a small fee from the rewards earned. However, this method can provide you with a steady supply of new dogcoins on a regular basis.
Dogcoin is relatively simple to mine. dogcoin is based on an algorithm called Scrypt. In contrast, Bitcoin uses the SHA-256 algorithm, which requires much more computer power to mine.
To start mining dogcoin, you will need certain hardware.
You will need a computer with a Windows, Apple Mac or Linux-based operating system and a good Internet connection.
Having a powerful graphics card in your computer can increase your chances of mining dogcoins. Some good GPUs to get started: SAPPHIRE Pulse Radeon RX 580, VTech GeForce GTX, Asus RX Vega 64.
You will also need to install a Scrypt ASIC miner. It is a hardware for mining Scrypt-based currencies such as Litecoin and Dogecoin. ASIC miners are expensive ($800- $9,000). Also, they can be a bit noisy and can get very hot. Here are some you can refer to: Innosilicon A2 Terminator, Bitmain Ant Miner L3, BW L21 Crypto Miner.
Now for the software needed to mine dogcoins using a computer.
If you are using your computer for mining, I recommend using Pooler’s CPU miner, which you can download for free.
If you are using a GPU for mining, then you will be given a range of software options, but a few of note here are CudaMiner, CGiner and EasyMiner (recommended for beginners).
The software CGiner and EasyMiner can be used with Scrypt ASIC Miner, but you can also use MultiMiner.
Once you have set up your hardware and software, you can start mining alone or join a mining pool. The best mining pools to start mining Doge are Multipool and AikaPool.
2.3 Start with Dogcoin cloud mining (no hardware required)
Simply put, cloud mining for Dogcoin is mining tokens by renting hardware from someone else. Dogcoin is mined for you in a large data center, and a portion of the bonus coins you receive will be provided to you on a monthly basis.
To start cloud mining, all you need to do is set up a Dogcoin core wallet and opt-in to a cloud mining pool. eobot, Nice Hash, Genesis Mining are some of the trusted script-based cloud mining pools that one can explore.
Some of the advantages of Dogcoin cloud mining.
Cheaper than setting up your own operation
No noisy hardware
No technical thinking
Get a steady supply of new tokens every month
Some disadvantages of dogcoin cloud mining.
It’s hard to find which cloud mining contract is worth the money
The monthly rental fee for the computing power you agree to use will be fixed, but the value of dogcoins may fluctuate, affecting your returns
Dogcoin pools have fixed contracts. Therefore, a profitable contract today may become unprofitable in a year and a half
You will miss out on the fun of mining yourself
03 Three reasons why people should pay attention to this space
3.1 Bona fide tokens with pure origins.
All of us have read that financial institutions and large investors have started to offer exposure to crypto assets in their portfolios, but as this trend emerges, serious concerns among investors are growing.
For example, a few days ago, Kevin O’Leary, Shark tank and chairman of O’Shares Investments, told the press that when they invested about 3% of their portfolio in digital assets, he received many calls from institutional investors asking if he knew the origin of these tokens.
He added that this is a challenge because we can tell you when crypto assets were created, but we can’t tell where they were created, and it is believed that about 60% of cryptocurrencies are currently mined from China. They don’t really care about a sustainable mining industry and there are serious human rights issues. There are many institutional clients who don’t want to own these so-called “blood tokens” from China. Issues like this are important to investors.
Also, in some cases, cryptocurrencies can take themselves too seriously and push hard. Like having people tweet and be overly aggressive in their promotions just to increase the value of the token, which leads to a price bubble. Just like in the video, a very famous YouTube influencer Marques Brownlee shows how he was told via email that he would be paid to spread positive word of mouth about Tron (another cryptocurrency) and shows him the same example that Lindsay Lohan did, Amanda Cerny, NeYo, Lil Yachty, etc.
Dogecoin is the other extreme. Recently, Graham Stefan, a financial advisor and real estate investor, said in a video that since dogcoin started out as a harmless joke and it was clear that the founders weren’t doing it to make money, it was actually in the cryptocurrency world which made itself too serious, more accessible and less intimidating.
Graham also brought up an interesting analogy. He talks about a man named Will Rogers who ran for president of the United States in 1928 and won through a joke campaign and then eventually resigned. will Rogers could have stayed on as president if he wanted to, but he resigned because the whole goal of the campaign was just to emulate the process. So, it’s like dog coins for politicians.
The creator is said to have sold all of his dogcoins in 2015. bill Markus told the press that he sold all of his dogcoins in 2015, enough to buy a used Honda. Even though they were baffled by its popularity.
The market value of dogcoin exceeds that of Honda. Dogcoin’s appreciation in value is largely led by people who communicate socially online and its community is becoming stronger and stronger every day.
As Kevin O’Leary stated in a Yahoo Finance interview, a cryptocurrency with pure origins is being mined sustainably for a long time, the jurisdiction supports human rights, ethics board approval, and has a strong and growing community worth more than any other generic token that cannot prove its providence. However, while Dogcoin has shown some initial promise, it is too early to say that Dogcoin will eventually enter the winning league of cryptocurrencies.
3.2 A strong and growing online community with influencers like Elon Musk backing Dogcoin
On April 30, 2021, Dogcoin surpassed 1 million Twitter users. On CoinMarketCap, over 638,424 people have them on their follow list (up over 100,000 in one day). They also have a Reddit community with 1.6 million members.
The DOGE community is vibrant, engaged and charitable. Also, for good reason, they consider Elon Musk to be their unofficial CEO (Dogefather) for now. Now, it’s been almost four years since Elon made his tweets about Dogecoin. Therefore, it doesn’t seem to be another fad he had in mind.
In addition, Elon is putting more effort into expanding the visibility and trust of Dogcoin. Just like he did on Saturday Night Live on May 8, 2021.
Historically, the value of dogcoin has risen within days of Elon’s tweets.
In a recent interview with TMZ, Elon said, “Cryptocurrency is likely to be the world’s currency of the future. So the question is which one will it be? It could be multiple. Then he added how dogcoin was invented as a joke, essentially to make fun of cryptocurrencies, which is ironic.” He explains, “The cryptocurrency that started as a joke turned into a real currency.”
However, in the same video, he does add, “Don’t invest your life savings in cryptocurrencies, it’s not wise.” In addition to Elon, Mark Cuban, owner of the Dallas Mavericks and investor in the Shark tank has also shown interest and confidence in this cryptocurrency. He said, ” Doge is a token that people actually use to trade.”
Coin World-Detailing the development of DogeCoin, how it is mined and the implications in the future
DogeCoin has also proven to be the first cryptocurrency that many people have mined and the trend is catching on due to its simplicity. It’s impossible to say whether or not Dogcoin will actually become a serious cryptocurrency, but what can be said is that it has proven to be a great way to start learning about cryptocurrency mining and trading.
It is now very clear that this community is growing rapidly and that increasingly influential names are driving the appeal.
3.3 Growing Real World Acceptance
More than 1,300 retailers have reported that they have started accepting dogcoin as a payment method, and this number is growing as the cryptocurrency becomes increasingly accepted by the market and its users.
OaklandA became the first baseball team to begin selling tickets in dogcoin. Even Mark Cuban’s Dallas Mavericks have started accepting dogcoin for payment.
With Elon Musk’s focus on dogcoin, there is an expectation that they will soon be able to use dogcoin to buy Tesla.
The gradual and consistent adoption of this cryptocurrency and its future prospects is a strong reason to help transform this “Meme token” into a significant crypto asset.
04 Will this phenomenon continue?
So far, it is uncertain whether this phenomenon will continue, but we can say that dogcoin is not the same as Bitcoin or any other digital crypto asset. It does not imply an inventory, but it is expected that most of the people who hold this cryptocurrency will use it for actual transactions.
Dogcoin is an uncapped currency that adds about 5 billion dogcoins per year and adjusts for inflation, in a sense similar to the way the Federal Reserve prints and circulates dollars. So, as mentioned earlier in this article, if user acceptance of using tokens for transactions continues to grow, it could eventually become a more stable currency within a 100-year time frame. Will it happen? We will see.
Because there are an unlimited number of dogcoins that will enter circulation at a rate of 5 billion per year, the only way for the value of dogcoin to continue to rise or stabilize is for more people to buy it or for more people to use it. If that happens, then it can be a stable source of currency, but for now, that won’t be sustainable without mass adoption.
In other words, for dogcoin to reach $1, its market cap would have to increase from the current $69 billion to $72 billion before 5 billion new tokens enter circulation. 10,000 new tokens are added every minute.
Billy Markus, one of the co-founders, told reporters that for Dogcoin to reach a market cap of one dollar, it would be equivalent to providing services to companies such as Boeing, Starbucks, American Express and IBM, which provide services to millions of people.
On the other hand, we have people who believe that the US dollar is better suited to be the currency of the future than Bitcoin. As it has a higher supply, lower prices and faster transactions. It is tailored for everyday use and its community culture can easily resonate with the public.
So, what do you think of Dogcoin and do you think it can be around for the long term?
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/a-detailed-explanation-of-the-development-of-dogcoin-how-it-is-mined-and-the-implications-in-time/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.