Beginners Guide To Dogecoin In Plain English

Dogecoin started as a joke.

Many people think it still is!

The only thing that isn’t funny is Dogecoin’s market cap. Dogecoins market cap is currently $54 billion dollars, meaning many early holders of this joke coin are now rather wealthy.

How do you buy Dogecoin? You can do so on the following exchanges:

What Is Dogecoin?

Like bitcoin and ETH, Dogecoin is a cryptocurrency. A cryptocurrency is a digital currency secured by cryptography.

Dogecoin isn’t a coin. It isn’t a note or a bar of metal. Dogecoin takes the form of a number and it resides in computers. You can send it to someone else just as easily as you send an email.

Why does it have value?

Dogecoin has value because people choose to give it value. That’s also true of art, precious metals and currency. It can be worth a lot or a little, depending on the value people choose to give it.

Unlike Bitcoin, its supply isn’t capped.

What makes Dogecoin different from currency?

The main concept to understand is that Dogecoin is decentralized.

Dogecoin transactions don’t require a third party to validate a financial transaction. Any two people, anywhere in the world, can send bitcoin to each other without the involvement of a bank, government, or other financial institution.

It’s easier to send than money. It’s faster. The transaction fees are much less than those charged by banks. It’s a more efficient form of currency.

Many people like the idea of having control of their own money, rather than letting banks control it.

How can Dogecoin eliminate third party verification?

Every transaction involving Dogecoin is tracked on the blockchain.

A blockchain is simply a ledger. The blockchain is a historical record of every transaction ever made using Dogecoin.

Why is Dogecoin attractive as an investment?

Given that there can be an infinite supply, it’s questionable as to whether Dogecoin can be used as a store of value in the same way Bitcoin can.

One interesting aspect of Dogecoin is that  it is being used to buy goods and services. The Dallas Mavericks allow fans to purchase tickets and merchandise from their online team store with Dogecoin.

However, the publicity around Dogecoin has been more luck than design. Elon Musk has been tweeting about it. It’s meme worthy.  The problem is that without attention, there may not be much more underpinning the price.

At this point, Dogecoin is a highly speculative investment class. Investors should consult an investment advisor before making investments decision and risk no more than they can afford to lose.

Further Reading: