A Beginner's Guide to Dogecoin

A Beginner's Guide to Dogecoin

PoliticsJuly 12, 2021

Cryptocurrency like Bitcoin has been all the latest craze, especially since people are looking into alternative sources of income. Dogecoin specifically, came out in 2013 as an online crypto exchange currency option, but did you know that it started as a joke between its founders?

Based on the doge meme, the coin features a Shibu dog, as a humorous gag on the original Bitcoin and the term doge. Read more about Dogecoin and how you can start mining it yourself.

Humble Beginnings

The founders of Dogecoin felt that the whole concept of cryptocurrency was being taken too seriously by the public and they wanted to put a fun spin on things. Little did they know that the public would become so engrossed by their antics that people started buying shares. 

It became especially popular recently when Elon Musk publicly stated that he supported Dogecoin. The founders have since chosen to donate all of their profits to various charitable organizations and community initiatives. Dogecoin has created a community of its own with thousands of fans using their money for good.

Mining Dogecoin

You will need to understand a bit about how cryptocurrencies are mined, as well as learn how powerful your computer needs to be to make those mining blocks successful. In mining cryptocurrencies, it can also be called hashing power. This is how well your hardware will work to generate different cryptocurrencies. 

The specifics of how blockchain works for cryptocurrency can take days to explain. Instead, think of it as small continuous lottery draws that happen every minute. This is another amazing thing about Dogecoin, the transaction time is less than Bitcoin. You get more successful transactions per minute than you would with Bitcoin, even though the value of each is less. 

Cryptocurrency mining works on a similar system to the lottery, the more mines you have running, the better your chances. Your mining setup works by running algorithms constantly through this lottery system. Each time the mine guesses a code correctly, or “wins the lottery”, a block of transactions is added. This is how money can be made, and it is fairly easy once you learn the basics. 

Monetary Value

There is such a small value to mining Dogecoin that it can be difficult to know if it is worth investing in. One thing is for sure, it is cheap to buy, and the market says it’s well worth $1.1 billion based on the number of coins already mined.

Essentially, Dogecoin is not worth a lot today. In total, 1 Dogecoin is valued at $0.003, however, there is a catch. Unlike Bitcoin, there is no limit to how many you can mine, purchase or sell. Currently, there are only 21 million Bitcoins, and no more will ever be made. Dogecoin is already sitting with more than 100 billion coins being circulated in the market and there is no cap on that number.

For beginner miners, consider pooled mining, which allows you to connect with friends and other people that have some hashing power too. Bring them together and you increase your power and chances of mining more successfully.