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Five facts about the Dogecoin digital currency ... Know them


 Five facts about the Dogecoin digital currency ... Know them

Dogecoin cryptocurrency has been around since late 2013, and it started out as a joke at first.

The coin is designed to be a parody of Bitcoin.

Besides being a joke and a parody, “Dogecoin” was not intended to serve any other purpose.

However, it can be used to transfer value.

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Here is a list of five interesting facts about Dogecoin:

1- Dogecoin began as a joke penned by Jackson Palmer and Billy Marcus in November
2013, he recently told “Marcus” that he sold all his “DOGE” in 2015.

2- There are 125 billion DOGE coins in circulation at this moment, compared to only 18.6 million Bitcoins.

3- Dogecoin hosts one of the largest cryptocurrency communities.

4- In 2014, the Dogecoin community raised $ 55,000 to sponsor a NASCAR racing driver and fully covered the price of his car.

5- The dog on the “Dogecoin” digital currency as the logo is the “Shiba Inu” dog, which is a breed of hunting dog.

Dogecoin and the cryptocurrency market

The digital currency “Dogecoin” is considered an entrance for many beginners in the crypto market, as it is popular and in many cases a reason for more and more interested people to enter the crypto market.

It is worth noting that the digital currency “Dogecoin” is not actively maintained and developed like the rest of the cryptocurrency projects that compete with it in terms of total value.

The Dogecoin blockchain hasn't seen many updates since 2015.

Currently, the latest project update is November 2019.

Currently, the network is secured by mining activity, just like the Bitcoin network.

For every block mined, miners receive 10,000 Dogecoin as a reward.

Dogecoin mining

The Dogecoin blockchain works like any other proof-of-work blockchain.

The blocks are joined together using a hashing algorithm.

Dogecoin miners who operate contract and validate transactions reject any invalid transactions.

While valid transactions are added to the blocks, they are eventually added to the Dogecoin blockchain.

The Bitcoin blockchain allows a new block to be mined every 10 minutes, while for the "Dogecoin" network, a new block is created every minute on average.

The inflated supply of the digital currency “Dogecoin”

Bitcoin enforces a strict total cap on the number of bitcoins that contract operators can extract, which is 21 million bitcoins.

To date, just over 18.6 million Bitcoins have been mined.

Once we reach the figure of 21 million, no one will be able to extract more bitcoins, as Bitcoin miners will receive transaction fees as rewards.

The digital currency “Dogecoin” takes a different approach in its economic design.

The coin chose an inflationary design.

Meaning that “Dogecoin” has chosen to be endless.

As mentioned previously, Dogecoin miners receive a reward of 10,000 DOGEs for each block they mine.

Therefore, at the current rate, 14,400,000 DOGE tokens are mined daily.

The “Dogecoin” developers chose an inflated design to replace the lost coins.

There is a lot of debate about “Dogecoin” inflationary designs versus bitcoin's deflationary design.

It is important to note that growth in the money supply does not necessarily lead to inflation.

According to economics analysts:
Money supply growth does not necessarily lead to inflation if there is equal growth in the value of goods and services in the economy.

In fact, it can be said that a productive and growing economy requires an increasing money supply to support it.

 Although such a system can be more productive over time, it is vulnerable to financial instability due to the difficulty of dealing with inflation.

Initially, Dogecoin was aiming to reach a stable aggregate supply of 100 billion DOGEs as its point of stability.

Despite this, the supply has already surpassed that number and continues to grow.

In other words, it is not easy to find the right balance between use and inflation.

Recently, the digital currency Dogecoin received remarkable attention from "Elon Musk", who announced his support for the currency on more than one occasion.

 Musk believes that this inflation prevents Dogecoin from becoming the "Internet currency" in addition to the control of large portfolios over the currency.

While on more than one occasion, Musk joked that the large “Dogecoin” community has the greatest potential to become a true currency due to the great diversity of people who hold DOGE coins.

Whether the “Dogecoin” currency will become the adopted digital currency by most people as portrayed by “Mask” is questionable, given that it was originally a joke and had not developed technically for a while, let alone the unlimited total supply.

The strength of the currency is that it has one of the largest communities in all crypto projects.

However, it is not an ideal candidate to become an official currency due to its lack of technical support, maintenance, and other factors that we touched upon in the article.