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Dogecoin is a fun, new and rapidly growing form of digital currency. This form of digital currency is called "cryptocurrency"; a type of digital currency. Cryptocurrency is completely anonymous, decentralized, and extremely secure.
Who created Dogecoin?
Dogecoin was created by programmer Billy Markus from Portland, Oregon and Jackson Palmer from Australia.
Is this like Bitcoin?
Yes it is but it is coded as a branch of the Litecoin family of digital cryptographic currency, it improves upon Bitcoin. The Coinpursuit site explains in more detail:
SHA-256 and Scrypt are the two most common algorithm systems used by cryptocurrency miners in order to authenticate blocks of transaction data. The system used, unfortunately, is not up to the miners; it's set by the developers of a given type of currency. When you go to cryptocurrency discussion boards and forums, you'll find there's a vigorous debate between the two algorithms. We'll look at the two types, and the arguments being made for and against them.
Before jumping into that, however, let's talk hash in a little more detail. The term refers to complex mathematical computations that are required in order for successful mining to take place, and you'll often see "hash rates" listed along with hardware created for digital currency mining. The higher the hash rate required for successful mining, the longer and more difficult the process will be for miners; this is expressed as the "hash difficulty" of a given type of currency. Here are some of the hash rate abbreviations you'll see, and what they mean:
When you start counting in the quadrillions (that's a one followed by fifteen zeroes, or 1,000,000,000,000,000), you're talking about almost incomprehensible numbers-and that many computations will take some serious machinery, well beyond the capability of desktop and laptop computers. Generally speaking, once the hash difficulty is up in the GH/s territory or higher, the energy, time and resource dedication required can become prohibitive for many individual miners. As a result, they'll need to consider either application-specific integrated circuits (ASICs), which are chips and dedicated units that exist solely for mining purposes and can be attached to existing computers, or separate high-power mining machines altogether.
As hash difficulty increases, so do the hash rates required in order to successfully mine coins. This highlights the main difference between the SHA-256 and Scrypt cryptocurrency mining algorithms.
SHA-256 is the more complex of the two, and it's used by Bitcoin and most of the currencies based upon its code. Data block processing with SHA-256 tends to be slower-transaction turnaround times, as a result, are measured in minutes as opposed to seconds-but it's argued that it's also more thorough and leaves less room for error. Its advocates also say it's better for overall data security. Successful mining of coins using SHA-256 often requires hash rates at the gigahashes per second (GH/s) range or higher; this means it's generally more difficult for individual miners to use; those who do often employ an ASIC or some other separate computing device set up to perform only mining tasks. Since some miners can't devote a machine-or at least an ASIC-to the task of mining, they often join mining pools (we'll discuss those in the next section).
Scrypt is the quicker and more simple algorithm of the two, and as new digital currencies are being introduced, more of them are favoring it over SHA-256. Scrypt is much easier to run on an already-existing CPU, and tends to use up less energy than using SHA-256; as a result, it's favored by most individual miners. In comparison to SHA-256, Scrypt's hash rates for successful coin mining generally range in the kilohashes per second (KH/s) or megahashes per second (MH/s) areas of difficulty, which can be achieved with regular computers without the need of ASICs or other hardware. Some argue this simpler system is more susceptible to security issues, since fast transaction turnaround times can mean the system is taking a less thorough look at the data. Its advocates point out, however, that hasn't as of yet presented a real-world problem.
Over time, hash difficulties for the more popular currencies that use the SHA-256 mining algorithm-such as Bitcoin-are expected to rise; this may very well restrict the mining of such currencies to mining pools or individual miners who can devote hardware, energy and time to the process. As as result, it's expected that digital currencies which use Scrypt will see a comparable rise in popularity, based upon the ease of mining alone.
How can I buy Dogecoins?
The most efficient way to buy Dogecoin is on a Dogecoin market, similar to a stock market. You can watch the current buy and sell orders as time goes on and study the charts. More information about markets can be found further on in this guide. Examples of Dogecoin markets include:
A more convenient way to buy Dogecoin is to use a debit or credit card, or an online service such as Paypal or Google Wallet. If you use one of these methods, the price will be marked up a bit from the market price, but the convenience is often worth it. Be smart, and only work with reputable sellers! Examples of sites to buy Dogecoin with credit/debit/online wallets:
NOTE: For some of the sites listed on this page, you may have to verify your identity first for legal purposes, so make sure you follow all of the site's rules and regulations.
How do I store my Dogecoins safely?
Offline wallets are by far the safest way to keep your currency. With digital currency, no one controls your money except yourself. Download the official software and store your Dogecoin safely and securely.
After downloading the wallet of your choice, make sure you back up your files on a USB drive or external hard drive. After you back it up, never delete the wallet.dat file!
The Dogecoin official wallet is available in two formats: Core, and Lite. The only difference between the two is that the core wallet downloads the entire record of all transactions made between Dogecoin wallets, and the lite wallet only downloads the most recent part of the record. Visit dogecoin.com for directions to download.
Platforms available to host a wallet:
You can also store your coin in online wallets for ease and quick access. It is an option, and sometimes a trusted option, but you no longer hold the safety of your coins in your own hands. Be as safe as you can!
NOTE: Make sure that you are using the most recent version of the Dogecoin wallet software. You can find announcements of new versions at reddit.com/r/dogecoin .
Why use Doge?
Dogecoin is used with a wallet on your computer, your smartphone, or a website. You can use it to buy goods and services, or trade it for other currencies (both other cryptocurrencies or traditional currency like US dollars).
One of the most popular uses for Dogecoin is "tipping" fellow internet-goers who create or share great content. Think of it as a more meaningful "like" or upvote, with real value that can be used all across the internet.
How to get started with Dogecoin?
It is very easy to start using Dogecoin.
What's with Dogecoin and the dog?
"Doge" is our fun, friendly mascot! The Shiba Inu is a Japanese breed of dog that was popularized as an online meme and represents Dogecoin.
Learn more about Doge
Doge is a slang term for "dog" that is primarily associated with pictures of Shiba Inus (nicknamed "Shibe") and internal monologue captions on Tumblr. These photos may be photoshopped to change the dog's face or captioned with interior monologues in Comic Sans font.
The use of the misspelled word "doge" to refer to a dog dates back to June 24th, 2005, when it was mentioned in an episode of Homestar Runner's puppet show. In the episode titled "Biz Cas Fri 1", Homestar calls Strong Bad his "d-o-g-e" while trying to distract him from his work.
On February 23rd, 2010, Japanese kindergarten teacher Atsuko Sato posted several photos of her rescue-adopted Shiba Inu dog Kabosu to her personal blog. Among the photos included a peculiar shot of Kabosu sitting on a couch while glaring sideways at the camera with raised eyebrows (shown below, right).
In December 2013, shortly after the breakout of "Doge," the tech news site The Verge published an article identifying Sato's Kabosu as the original Shiba Inu depicted in the meme. In addition to Kabosu, The Verge also identified "Suki," a Shiba Inu who lives with San Francisco-based photographer Jonathan Fleming, as the scarfed dog portrayed in another popular instance of the meme.
In December 2012, the term "doge" appeared on Reddit in a post submitted to /r/DogsIWannaHug. The same month, an interior monologue captioned photo of a Schnauzer was submitted to Cheezburger with the title "Schnauze." On January 8th, 2013, the subreddit /r/Doge was created, sharing photos and videos of the captioned Shiba Inus. In May, /r/dailydoge was created to share one dog photo a day, captioned or not. Another single topic blog, shibe-doge, launched in July 2013 dedicated to sharing Shiba Inu photos. On July 29th, 2013, a doge thread was sticky-featured to the top of the 4chan board /s4s/ (Shit 4chan Says), garnering more than 600 replies.
On November 20, 2013, Youtube implemented an Easter egg, that changes the text to be colored and in Comic Sans, much like the original internal-monologue style captions, when user searches the phrase "doge meme".
Which places accept Dogecoin?
Plenty of places accept Dogecoin as payment. If you find one that doesn't, check out eGifter to buy an in-store gift card with Dogecoin!
Examples of business sites that accept Dogecoin:
The full directory for businesses that accept Dogecoin can be found here: reddit.com/r/dogecoin/wiki/shop_with_dogecoin
How can I send and receive Dogecoins?
Sending Dogecoin is incredibly easy. That's one of the largest benefits of digital currency. It costs a fraction of a cent and sends in minutes.
Every Dogecoin wallet contains one or more "addresses." An address is simply a code that can be used to indicate where Dogecoin is to be sent. An address is represented as a long string of characters beginning with the letter D. The letter D is included in the address.
The Dogecoin blockchain, or "Dogechain," is a public record of all transactions made between Dogecoin wallets. Explore the Dogecoin blockchain at Dogechain.info.
When receiving Dogecoin, all the user has to do is provide his or her public address. Other users can then send money to the address and the blockchain will confirm the transaction.
There are two simple ways to send Dogecoin from one wallet to another:
How can I tip Dogecoins?
To send and receive Dogecoin via Twitter, Facebook, and Reddit, you need to make an account with each "tip bot." This account will keep track of your coins, and send them to another user if desired.
Or to accept a tip for the first time:
Visit reddit.com/r/dogetipbot for questions.
Facebook (Doge Tip App)
Facebook tips will fail and will not be logged under the following circumstances:
What is the value of Dogecoin?
When learning about Dogecoin, it is important to keep in mind that Dogecoin has a real-world value. It's not just some sort of arbitrary points system; Dogecoin can be bought and sold for your country's currency or better yet, exchanged for goods and services!
There are two main ways in which Dogecoin's value is communicated: Relative to Bitcoin, and relative to fiat money (a government-backed currency such as USD).
Relative to Bitcoin
Giving Dogecoin a value in terms of Bitcoin is the most popular method of talking about price changes and such. Bitcoin is chosen because it is currently the most successful digital currency both in value and acceptance. Because one Dogecoin has such a small value compared to one Bitcoin, the value is expressed in terms of "Satoshi," which is defined as 0.00000001 Bitcoin.
Relative to fiat money
Talking about Dogecoin's value in terms of the U.S. Dollar or another fiat currency eliminates the problem that arises when when, for example, Bitcoins value goes up. This causes the value of Dogecoin to appear to go down when in fact it may be staying constant relative to fiat money.
In addition to the value of one Dogecoin, the value of the currency as a whole can be shown by its market capitalization, which shows the total value of all the currency in circulation. This can be used to show how much was lost or gained by investors in total following a price fluctuation.
Why does the price of Dogecoin fluctuate?
As do all other buyable and sellable goods, Dogecoin has a price that fluctuates based on the supply and demand of the coin. These fluctuations make it possible to treat Dogecoin as an investment for future gain.
Supply is the amount of a good that producers are willing and able to sell across different prices.
Demand is the amount of a good that consumers are willing and able to buy across different prices.
Influences on Supply: Number of suppliers, expectations of future profit, technology, price of other goods, and intervention from the government
Influences on Demand: Number of consumers, expectations of future price changes, tastes and preferences, price of other goods, and consumer income
Relating economic principles to Dogecoin
Dogecoin follows the same principles as do other goods and services. It has suppliers (those whosell Dogecoin) and consumers (those who buy it). Changes in the supply and demand of Dogecoin affect the trade volume of Dogecoin and the price at which Dogecoin is traded. Let's take a look at a few examples:
What if I have more questions about Dogecoin?
Some wonderful places where you can get your questions answered are the Dogecoin Foundation at Foundation.Dogecoin.com and the Dogecoin sub-reddit at Reddit.com/r/dogecoin.
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