What is Dogecoin and How Does Mining Work

What is Dogecoin and How Does Mining Work

What is Dogecoin?

Dogecoin is one of  Litecoin peer-to-peer derived. Its name and design are based on the Doge internet phenomenon. The cryptocurrency Dogecoin should just be a joke. But now the currency is traded high on the crypto market. The price has already risen by more than 8,000 percent in 2021.

Where did Dogecon Originate from?

Dogecoin was started in 2013 by software developers Billy Markus and Jackson Palmer as a joke parody of Bitcoin, which was experiencing its first boom at that time.

As a symbol, they decided on a coin with a dog face of the Japanese breed Shiba Inu on it – at that time a popular fun picture on the Internet (“meme”). The name is based on the English term for a dog (“dog”).

Compared to the most important cryptocurrency Bitcoin, the Dogecoin has the advantage that transactions can be processed faster because the encryption is easier. In contrast to Bitcoin alternatives such as Ethereum, Cardano, or Polkadot, there are no signs of new areas of application for the technology.

The number of coins is not limited either. While Bitcoin is limited to 21 million digital coins, there is no such limit with Dogecoin. Every year there is a constant number of new coins. Dogecoin, therefore, has an inflationary character. Due to the high total number, the value of an individual coin is also low. 

Dogecoin
Image: courtesy

Elon Musk again demonstrates how much influence he has on the crypto markets. In a thread started by the Tesla boss himself on the short message service Twitter, in which he compared magic with technology, a user asked what Musk thought of people “who are angry with you about crypto”.

Dogecoin might have started as a joke but it is no longer a joke. 

The real battle is being fought between Dogecoin fiat and crypto, Musk replied. “And the bottom line is that I support the latter,” said the Tesla boss.

Fiat money refers to currencies such as the euro or the US dollar that are issued by central banks. Cryptocurrencies, on the other hand, are classically organized in a decentralized manner. This means that they are based on computer programs that cannot be controlled by a company or a government and thus also switched off.

For Bitcoin investors, Musk’s tweet was a welcome signal. The Bitcoin price rose at times to a good $ 38,700, an increase of around $ 3,000. As a result, the largest and oldest digital currency fell significantly again. It’s just under $ 35,000 on Sunday mornings.

Dogecoin
Crypto Image : What is Dogecoin and How Does Mining Work

Crypto investors have had a wild roller coaster ride for the past two weeks. Musk had initially positioned himself as an advocate of cryptocurrencies since the beginning of the year – after announcing in early February that he had invested a small portion of Tesla’s cash reserves in Bitcoin.

“In times of negative real interest rates, only a weirdo would look elsewhere,” Musk had justified the decision to invest in crypto at the time.

Dogecoin
Elon Musk, serial entrepreneur, at TED2013: The Young, The Wise, The Undiscovered. Wednesday, February 27, 2013, Long Beach, CA. Photo: James Duncan Davidson. What is Dogecoin and How Does Mining Work

What is Dogecoin worth? 

The true value of Dogecoin, Today is $43,105,902,952 as of May 24, 2021. 

How to do dogecoin mining?

Mining dogecoin like any other Cryptocurrency,  The mining of Dogecoins also requires a lot of electricity.

  • Generally need to have a Pc have powerful hardware. In particular, a good processor and a good graphics card are important.
  • You must also have a Mining pool join, whereby you lose part of the collected Dogecoins again.

 The more miners there are in a network, the more difficult it is to mine and the lower the profit.

  • With so many people mining nowadays, it is only profitable to a limited extent.

Join the mining pool

To be able to mine, you must have a so-called Mining pool to join.

  • In these pools, users share their Computing power free.
  • If a Dogecoin block has been cracked, each user receives their fair share.
  • Unfortunately – unlike with Bitcoins – there are no reputable mining pools. The best known are ProhashingMultipool, or Hashfaster.
  • Simply create an account with a pool of your choice.

Dogecoin mining – this is how it works

Mining Dogecoins is child’s play for experienced Bitcoin miners.

  • The first thing you need is a Dogecoin wallet, which you can easily download from the Internet. With this program, you can create a wallet address under the tab “Much Receive”.
  • Then register – as already mentioned – with a mining pool. Enter your wallet address here and create a worker. You can easily manage the workers in the mining pool settings on the respective website.
  • Now you can easily download a Dogecoin miner, deposit your worker here and start mining.

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