In the last couple of months, close attention has been focused on an interesting coin Dogecoin. Despite the fact that at that moment almost all crypto assets were showing good growth, everyone was talking about Doge. What’s most interesting is that this cryptocurrency was created as a joke (meme), but its price began to grow rapidly and the token entered the TOP 5 according to Coinmarketcap. In this article we will analyze in detail what it is. Doge cryptocurrency forecast, and also consider its perspective.
Today's issue:
What is the DogeCoin cryptocurrency?
However, such Blockchain companies, most often, cannot bring super-profits to their investors, since their assets are already quite expensive. Therefore, you should not consider them as a highly profitable instrument for investing your funds.
At the same time, there are lesser-known projects on the market with relatively small capitalization, which large investors prefer to avoid. However, along with a small amount of capitalization, such cryptocurrencies often have an interesting idea and serious growth prospects. One such project is Doge with its personal currency DogeCoin (DOGE), which no one has taken seriously before.
There is an opinion that this digital asset is a parody of a real cryptocurrency that was created just for fun. There is a legend that Doge was invented on the image board 4chan and was actively promoted by its users. However, during the rising market in late 2022 - early 2022, when all digital assets were at their peak, DogeCoin was able to grow in capitalization to almost $2 billion, and its price rose from $0.0002 to $0.016.
Cryptocurrency DogeCoin. Peak value
This fact makes it clear that the DOGE cryptocurrency is not just a dummy or some kind of fraudulent project with a funny image of the famous meme of the red Shiba Inu, which is so widespread on the Internet, but a stably established brand in the market with good growth prospects in the future.
And today’s article will try to tell you in more detail about the DogeCoin project, its interesting history of creation and the main idea of this cryptocurrency. It will also answer the question whether it is worth buying DOGE cryptocurrency in order to increase your investment portfolio or not.
Why invest in Dogecoin
If you were to buy $1,000 worth of Dogecoin at the beginning of 2022, you would now have approximately $85,000. This cryptocurrency behaves unpredictably, so no one knows what levels its price may reach. But it is precisely because of its volatility that this currency deserves attention. If you're lucky, you could potentially make good money by investing now.
It is worth considering that the likelihood that a meme cryptocurrency will become a reliable and long-term investment is very low. So, if you decide to buy Dogecoin, it is better to treat this investment as an experiment. Invest only what you are willing to lose, and not only the money you can afford to lose, and don't expect too much from this currency. For us, this is primarily a speculative instrument with growth potential.
To successfully trade this coin, you first need to track all of Musk’s tweets. As long as the head of Tesla shows interest in Dogecoin, the cryptocurrency's multiple growth is possible.
DogeCoin analysis on Coinmarketcap
So, first, let's take a look at coinmarketcap.com, which ranks the best cryptocurrencies, and learn all the main points regarding the DogeCoin coin. This digital currency ranks 44th on this list. The project's capitalization is now more than $270 million, and the price per coin fluctuates around $0.002. The total coin supply is 115,295,107,610 DOGE.
DogeCoin. Capitalization and issue
It is also worth noting that the DOGE asset is truly a unique cryptocurrency with its own personal Blockchain, and not any token. In addition, this currency can be mined, which gives it a chance to further develop in the future due to miners mining this asset around the world.
Mining on PC
Well, if you are still not ready to pay a lot of money for ASIC miners and just want to mine for fun, then you just need to download the miner program, configure it to work with the pool and run it. For configuration, a *.bat file is used, which is created directly in the folder with the program.
For AMD GPUs:
Download sgminer from the link https://github.com/nicehash/sgminer/releases. In the body file we indicate the following:
sgminer –o stratum.aikapool.com:7915 -u Weblogin.Worker -p WorkerPassword
History of the creation of DogeCoin. The thorny path
The Dogecoin cryptocurrency was created back in 2013 by two programmers - Jackson Palmer and Billy Marcus. At the very beginning, the developers didn’t even know each other; each of them tried to do their own thing. However, already at that time they were both interested in cryptocurrencies and the new Blockchain technology.
After Palmer acquired the official domain of the DogeCoin website - dogecoin.com, the developers teamed up and decided to create their own Blockchain project. However, Palmer and Marcus decided not to take this idea too seriously, considering this idea just some kind of joke. As proof of this, we can cite the fact that the main logo of this coin is a meme, a dog of the Japanese Shiba Inu breed, which was so popular at that time.
The project began to be implemented quite quickly. In 2013, Marcus was already creating his own cryptocurrency, so the creation of the coin had already begun in advance. The developers took the Litecoin cryptocurrency Blockchain as the basis for the DOGE currency, making changes in the time between blocks, which is 1 minute (in the Litecoin network from 2.5 minutes), as well as during the reassignment of difficulty. As a result, having slightly adjusted the Litecoin code, the developers created a completely new digital asset with its own unique Blockchain.
On December 9, 2013, the DogeCoin coin was able to increase in price for the first time, jumping up almost 300 percent in just three days - from 0.00026 to 0.00095 US dollars. This event occurred primarily because the main cryptocurrency Bitcoin and all other digital assets opposed China’s decision to prohibit national banks from investing their funds in various digital assets and Blockchain projects.
But despite this growth of DogeCoin and its first release to the masses, after that quite difficult periods began for this coin, which continually undermined trust in DOGE.
So, after that 300% increase, the price of this asset dropped by 80% a few days later, all because miners took over this network, receiving huge rewards in the form of Doge coins for relatively little computing power.
On December 24, a large Indian bank openly stated in the media that all Doge users should not place much trust in this project, that this is a common fraudulent scheme. This news, of course, had a very negative impact on the company’s reputation. But all DOGE's problems did not end there.
On December 25, a massive scam occurs in which millions of coins from many investors were stolen from the official Dogewallet portal. One hacker was able to hack the system and change all transfers of funds within this network to his static address, to which all investor funds were transferred for some time.
To help those who lost their finances in this incident, the development team announced a charity operation called “SaveDogemas”, in which everyone could contribute their share of Doge coins to the fund of investors who lost their funds during the hacker attack. As a result, a month later all the lost funds were returned and the hype around this incident subsided.
2015 also had a serious impact on the DOGE Blockchain project. After the departure of Jackson Palmer in 2015, there were a lot of negative rumors in the digital market about the further “death” of the Doge project. At that time, this cryptocurrency was going through a very difficult period, which led many investors away from this project.
However, despite all the difficulties that the Doge community endured, this project was able to survive and continue to exist to this day in the digital asset market, continuing to participate in a tough competitive selection.
Mining Dogecoin: difficulty and algorithm
Dogecoin mining difficulty
Dogecoin mining features:
- A block is formed once every minute (2.5 times faster than Litecoin);
- The procedure for confirming financial transactions takes no more than six minutes (for Litecoin it takes about 15 minutes);
- Adjustments to the difficulty of currency mining are recalculated once every 240 blocks.
After the coin appeared in 2013, it was impossible to mine Dogecoin using ASIC. Mining was carried out exclusively thanks to processors and video cards. The ability to mine currency using ASICs running on the Scrypt algorithm appeared to users in mid-2014. The difficulty of mining was constantly increasing, and it became increasingly difficult for miners on processors and video cards to compete with more efficient miners on ASICs.
Dogecoin has its own mining difficulty indicators. The number of tokens received in a certain time depends on them. When creating the Dogecoin coin, the developers set a clear number of coins that can be mined. If in a specific period of time more coins were mined than initially pledged, mining costs increase sharply. This is done so that it is possible to control the pace of Dogecoin mining. If the difficulty of mining falls below the planned parameters, the process of finding blocks is accelerated.
Dogecoin mining is the process of calculating the hash of blocks using available technological power. Since last year, the coin mining difficulty has increased to 2.6 million, and the hashrate has risen to 180 Th/s.
Dogecoin mining difficulty chart
// Source: BitInfoCharts
To receive a Dogecoin coin you must:
- install a unique wallet for Doga on your PC - Dogecoin Core;
- have the necessary equipment (the most popular is ASIC equipment, presented in the table below).
Dogecoin mining equipment
Characteristics of Dogecoin mining equipment
The main idea of Dogecoin. Positive user community
First of all, the DogeCoin project was created for ordinary people. It was planned that it would be really useful to everyone and, most importantly, affordable. After all, many users simply cannot afford a currency like Bitcoin.
The DogeCoin coin is currently used in many industries. Its main purpose is to conduct various charity fundraisers and to support sports teams from various poor countries. This coin can also be used by users to transfer their funds among themselves, exchange for other cryptocurrencies (or withdraw to fiat money), purchase goods on the Internet, pay for services, etc.
In general, the DOGE asset can be thought of as the universal currency of our time, which you can use for your needs in a variety of areas.
It is worth mentioning separately about the community that uses DOGE coins. Since this cryptocurrency is mainly needed to attract funds from users to organize various charitable events, the bulk of investors of this asset are very positive people who believe in goodness. That is why they strongly support all the ideas of this cryptocurrency and give it a chance to exist to this day.
Features of work
Dogecoin is an inflation cryptocurrency, which is what makes it different from other cryptocurrencies.
Bitcoin and many other cryptocurrencies are issued with strict restrictions on the supply of the coin.
The main challenge that comes with a deflationary cryptocurrency is that it can encourage savings as its perceived value increases over time. In addition, once a large capitalization has been achieved, miners should not support the system. This created a tactic that relies on inflation to maintain mining and replace lost tokens, helping to maintain a stable supply for the roughly 100 billion token category.
Issue of coins. Currency mining
The total emission volume of the Doge cryptocurrency was initially equated to 100 billion coins. However, the developers decided not to stop at this quantity and specifically created a Blockchain with an artificial inflation function, which will independently increase the total number of assets by 5% annually.
This fact can be considered both a plus and a minus of this digital asset. On the one hand, an increase in total emissions by 5% will only push back the DOGE price increase in the future. On the other hand, miners who mine this cryptocurrency will actively promote it, increasing the demand for DOGE, because they are given the opportunity to receive about 5 billion new DogeCoin coins annually.
In general, it is quite difficult to unequivocally state the usefulness of the artificial inflation function.
Reasons not to buy Dogecoin
There are two reasons why you should refrain from buying this currency, or exercise extreme caution when trading.
1. Fundamentally, it is not as strong as other currencies.
Now there are several types of cryptocurrencies, which are similar in their structure and goals. That being said, investing in Dogecoin is very different from investing in more established digital currencies such as Bitcoin. Dogecoin was created in 2013, and although it has really grown since then, the cryptocurrency is not as strong as other crypto assets.
For example, one of the reasons for investing in BTC is the limited number of its tokens, the total number of which does not exceed 21 million. Bitcoin's limited supply increases its value. It’s not for nothing that many experts call BTC “digital gold”; this resource is limited, just like gold.
On the other hand, Billy Marcus's creation has 129 billion tokens in circulation, which automatically reduces its price. With so many tokens available, there is little value.
In addition, there are not many companies in the world that are willing to accept cryptocurrency as payment for their products and services. And of those who work with it, they will most likely prefer to accept Bitcoin than Dogecoin. Without widespread adoption, it will be difficult for Dogecoin to achieve sustainable growth.
And yet, there is nothing that makes Dogecoin stand out from its competitors. For example, BTC has the longest track record and the most recognition, giving it an edge in the cryptocurrency market. Ethereum is the second most popular cryptocurrency after Bitcoin, and its blockchain technology is used for non-fungible tokens (NFTs) and decentralized finance, allowing Ethereum to be used outside of the cryptocurrency space. If you take lesser-known cryptocurrencies such as Litecoin, Nano and Stellar, they have lower transaction fees than Dogecoin.
As you can see, Dogecoin does not have any outstanding qualities, and without them, the coin will have a difficult time growing in the long term.
2. A bubble that will burst soon.
Considering the fact that there is nothing behind the meme cryptocurrency that can guarantee growth and profit other than celebrity endorsements and internet hype, all signs point to a bubble that will burst sooner or later.
Dogecoin is very reminiscent of companies like GameStop and AMC, whose shares surged overnight without their businesses justifying the rise.
Like GameStop and AMC, Dogecoin's rise is due to investors artificially driving it higher, driven largely by comments from Elon Musk promoting it on social media. And like GameStop and AMC, it's likely only a matter of time before Dogecoin collapses.
Where to buy DogeCoin cryptocurrency
You can now buy Dogecoin cryptocurrency on almost all the best cryptocurrency exchanges without any problems. There is quite enough supply/demand for this asset. The main reason why DogeCoin is bought is the ability to exchange it for many other digital assets within many exchanges. And even the total sales volume per day from all exchanges is about $5 million. The second reason to use DogeCoin is to transfer funds between exchanges. The commission for withdrawing Doge is much lower than for withdrawing Bitcoin or Ethereum. That is, if you want to send cryptocurrency from one exchange to another, then it will be cheaper and faster to do it in DogeCoin.
The main platforms that trade large volumes of DogeCoin are: Fex, Bit-Z, HitBTC, but you can also find this coin on exchanges such as Poloniex or Bittrex. You can see the full list of trading platforms on coinmarketcap.com in the “Markets” section.
Preparatory stages for mining
Getting started with Dogecoin is quite simple. To do this, you need to complete several steps.
Step 1: Download your wallet.
Go to the Play Store and search for “Dogecoin Wallet” in the Play Store or click the “Get on Google Play” button. Click the "Install" button. Click the Accept button in the application permission request panel. Wait for the application to download and install.
Stage 2. Launch the wallet.
On the same page, click the “Open” button. You will be redirected to your Dogecoin wallet. You can also access the wallet from the app drawer on your Android smartphone.
Step 3: Use your wallet.
Now you have a full wallet in your hands! At the top you have your address book and settings. Below that, you have the Dogecoin address on the left, the Dogecoin QR code address on the right, and your Dogecoin balance. At the bottom you have your transaction history. At the very bottom, you can “Request Coins”, “Send Coins” or scan the QR code with your camera.
Stage 4. Dogecoin community on the Internet.
dogecoincom-reddit – The main hotspot for the Dogecoin community.
#dogecoin IRC – Internet chat based on Dogecoin.
Dogecoin Forum – Another community forum for popular crypto assets
Step 5: Get Dogecoin.
There are many ways to get Dogecoin. You can buy them, trade them, get rewards , mine coins and much more. Dogecoin is among the popular cryptocurrencies and hence its popularity is also growing.
There are several resources to get a coin for free. Faucet is a website that gives you a small amount of Dogecoin for free to introduce you to cryptocurrency. All you need is your wallet address.
Here are a couple of Dogecoin faucets :
Dogefaucet.com – Enter your address to receive Dogecoin for free.
InDogeWeTrust.com is the same as Dogefaucet.
the technical details involved . Cryptocurrency mining is only recommended for advanced users as it requires a lot of technical knowledge, including blockchain.
How to store DogeCoin
You can store your purchased coins both on the trading platforms where you purchased this asset, and on the official online wallet, which can be registered on the dogechain.info domain. This service is of very high quality and reliable, in addition, there you can see all the information about the state and history of the network: previously mined coins and processed blocks, pools on charts.
One of the most secure ways to store Doge is the Ledger Nano hardware wallet. This unhackable offline wallet costs little money. It can be ordered and received by mail.
Dogecoin mining methods
Mining Dogecoin
Among the main methods of mining Dogecoin are the following:
- Solo mining;
- Mining in pools;
- Cloud mining using equipment rental.
Solo mining Dogecoin
This type of mining is the independent extraction of currency using a personal computer.
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At the moment, Dogecoin mining on your own is unprofitable.
Mining Dogecoin on a CPU
Mining on a processor
There is no particular point in mining Dogecoin on a processor, since there will be practically no profit from such mining.
Mining Dogecoin on video cards
Mining Dogecoin on video cards will be more productive than mining Doge tokens on a processor. To configure the equipment and carry out independent mining, you will need one of the utilities:
- CudaMiner (used for NVidia cards);
- SGMiner, CGMiner72 and (used for ATI cards).
As a rule, when first launched, video cards cannot provide maximum performance. To speed up work, you will need to make changes to the launch line and change the frequencies of the video card. Moreover, it will be necessary to provide ventilation to the case to lower the temperature of the video card, since it will constantly be under 100% load.
Mining Dogecoin on ASICs
Mining on Asics
Mining on Asics is the most profitable type of Dogecoin mining. The most popular solution for Doge is Antminer L3+, which costs over $1,500. This ASIC gives a hashrate of 504MH/s and consumes only 800W.
Dogecoin mining pool
Mining in a pool
Miners who do not want to purchase ASICs should engage in mining in a pool. A pool is a server on which power is distributed among all members of the pool. The mined coins are divided in proportion to the contribution to the overall work between all network participants.
Among the popular pools for Dogecoin mining, the following should be mentioned:
- Dogehashfaster;
- Multipool;
- Aikapool.
To improve security, you should add the backup pool address after the primary pool address.
Cloud mining Dogecoin
Cloud mining
For Doge cloud mining, you will need to rent special equipment. This type of mining is extremely popular, as it allows users to avoid buying an expensive ASIC or setting up a video card.
The most popular services for Dogecoin cloud mining are:
- DogeMining is a Czech service that offers two-year capacity rental contracts. You can start working after registration. Blocks are generated using AntPool, F2Pool, BTCChina, BW.com pools;
- Antex.cloud – the service offers mining of 8 crypto coins, including Dogecoin. The minimum amount of hashrate that can be purchased is 5GH/s. Contracts are also concluded for 2 years.
DOGE price forecast for this year - what foreign experts say
At $0.50, DOGE's market cap is about $65 billion. If the price increases to $1, the market cap would be $130 billion.
This arrangement is quite acceptable. However, $100 for this digital asset is a pipe dream. And that's why.
The US GDP is about $21 trillion, while China's is about $15 trillion.
With Dogecoin costing $100 per coin, its total capitalization will be $12 trillion—80% of China’s GDP, 59% of the United States. This is absurd.
Therefore, the price of this digital asset will never reach $100.
Some foreign experts and analytical services give the following forecasts for prices for this year:
Sam Onigbanjo, a business analyst with the British newspaper Daily Express and a certified digital marketer, opined that DOGE is in an upward trend. According to him, having overcome the resistance at $0.50, the price could rise to $1 by the end of July this year.
The forecasting service based on WalletInvestor algorithms suggests the following price per coin:
2021 — $0,35 2022 — $0,44 2023 — $0,5 2025 — $0,63.
But the price forecast from cryptocurrency aggregator CoinSwitch is bearish. In one year the price will drop to $0.01, and in five years it will trade at $0.04.
Managing partner of the American independent financial consulting company Key Advisors Group, Eddie Gabour, in an interview with the financial news portal Yahoo Finance Live, said that he views Dogecoin as a speculative game. He assumed that the game would end when the bubble burst.
