Like Bitcoin, Dogecoin (DOGE) is a decentralized, peer-to-peer crypto currency, which intends to become the currency of the internet too. Unlike Bitcoin and its other peers though, Dogecoin was born as a sort of joke, on December 8, 2013. The light-hearted nature of the initiative quickly drew in an unexpectedly massive following, and its capitalization reached the $60 million mark in January, 2014. Since then, the market cap of the currency has reached new highs: in June, 2017, the $340 million mark was shattered as well.
Also unlike Bitcoin, the Dogecoin network churned out some 100 billion coins by 2015, and each year afterwards, some 5.25 billion more hit the markets. While initially, there was a limit set on the number of Dogecoins that would be produced over the years, that limit was tossed out the window. This makes Dogecoin an inflationary currency, rather than a deflationary one, like BTC.
Dogecoin’s “father” is programmer Billy Markus, from Portland, who built his concept on Luckycoin. Thus, in the beginning, Dogecoin handed its miners randomized rewards for each mined block. This approach was later abandoned though as it was deemed unsustainable over the long-run.
Because Luckycoin was based on Litecoin, it is safe to say that Dogecoin too is an evolution of Litecoin. As such, its proof-of-work algo uses scrypt technology, which essentially means that miners can’t really use dedicated ASICs.
Dogecoin’s valuation went through several spikes, some of which were brought about by fundraising stunts such as the 2014 Winter Olympics one, which saw the Dogecoin community sponsor the Jamaican bobsled team to the tune of some $50,000.
The Doge4Water fundraiser saw the community put together some $30,000 to build a well in the Tana river basin in Kenya and it too was a success, bringing some more welcome exposure for the Doge community.