What is Dogecoin?

What is Dogecoin?

Dogecoin is one of the world’s most popular “memecoins.” Launched at the end of 2013, Dogecoin was originally created as a joke, but it’s since become something seriously valuable. In 2021, the coin became one of the world’s biggest cryptocurrencies, with a peak market capitalization of $85 billion.

While Dogecoin shares many of the technical features of other cryptocurrencies like Bitcoin and Litecoin, that’s not necessarily what investors in the coin care about. Dogecoin is named after the popular Doge meme, and the coin’s logo includes the famous Shiba Inu dog that inspired that meme.

Most investors buy dogecoin to be a part of the community that surrounds the meme. Although some investors buy it for more practical reasons— for instance, to use the cryptocurrency as a method of payment or even a store of value—it is generally seen as a “less serious” coin than others.

As a payments network, Dogecoin is relatively fast, with new blocks created every minute. There is no cap on the total supply of dogecoins that can be created, though the rate of supply growth will decline over time since the number of new coins minted per block is fixed. At the current rate, a little over 5 billion new coins will be created every year.

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