What are Great Danes? It is a cryptocurrency developed on blockchain technology, just like Bitcoin and Ethereum
At the end of 2013, programmers Billy Markus and Jackson Palmer developed the Dogecoin cryptocurrency. Palmer chose the cryptocurrency logo, which featured a popular meme at the time, where the word “Doge” was intentionally misspelled. The meme depicted a Shiba Inu dog.
At first, the project was a purely comic initiative and nothing more, but over time it gained immense popularity, the coin rate soared and gained more than 5000%. One of the proponents of doga cryptocurrency is Tesla CEO Elon Musk - he has called it his favorite cryptocurrency. His tweets about this project make the rate jump tens of percent up. Recently, he announced that he was going to send Dogecoin to the moon, literally and figuratively.
How does Dogecoin work?
So, what are dogi? It is a cryptocurrency developed on blockchain technology, just like Bitcoin and Ethereum. For mining coins, computers are used that perform complex mathematical tasks. Transactions are processed and recorded on the Dogecoin blockchain. Blockchain dogi works on the “Proof-of-work” algorithm. For processing transactions and supporting the network, miners receive additional Dogecoins, which they can dispose of at their discretion - exchange or sell.
The Dogecoin cryptocurrency is highly inflationary in nature - there is no limit on the number of coins issued. Blockchain creates millions of new Dogecoins every day, making it difficult for Dogecoins to speculatively rise in price.
Investing in Dogecoin
Cryptocurrency pair DOGE USDT is listed on crypto exchanges:
- Huobi
- Binance
- Coinbase Pro
- Kraken
- Whitebit exchange.
With an unlimited number of Dogecoins to be issued, and millions of new Dogecoins being issued every day, there is little incentive for investors to hold onto cryptocurrencies for the long term.
It so happened that the price of Dogecoin was very low - in 2020, the average price of a coin was only about $0.003, this did not motivate users to hold the asset. On social networks Reddit, Twitter, Facebook and others, Dogecoins can be used to reward or pay for posting content between users.
The growth of the Dogecoin rate, which we observed in 2021, may change in the long term. It is still difficult to say whether the culture of rewards in cryptocurrency will continue in social networks and how the coin rate will behave.
