Day by day, the world is becoming more economically unstable. Without a doubt, one of the main reasons for this huge problem is the prevalence of outdated centralized banking and economic systems. Luckily, now people all over the world have the option of using alternative currencies. You might know these digital assets cryptocurrencies, mediums of exchange that use cryptography in order to secure and guarantee transparent transactions. Surely, one of the most interesting cryptocurrencies available is Dogecoin.
Initially introduced as a joke currency, it quickly became popular, even developing its own online community. Without a doubt, its success has a lot to do with the incredible financial autonomy that it provides its users with. The present article will discuss that situation while going over the cryptocurrency‘s characteristics, advantages, disadvantages and overall value. Additionally, it will provide you with helpful insight regarding the ways in which you can benefit from the digital currency.
What Is Dogecoin?
Available since the year 2013, Dogecoin is a cryptocurrency that has gained a huge amount of notoriety. Amusingly, it features as its logo the Shiba Inu that became the viral internet meme. Billy Markus created it. He is a Portland-based programmer who wanted to create a cryptocurrency that’s capable of reaching a larger demographic than Bitcoin, the first and most well-known fully-functional cryptocurrency available.
Among other things, that implied trying to maintain a stable Dogecoin price. Additionally, he hoped to achieve transparency by distancing the currency from the controversies related to shady things such as online drug marketplaces.
Who Uses Dogecoin?
Following an impressive initial coin production schedule, 100 billion units of the cryptocurrency were put into circulation by the first half of 2015. After that, the company added 5.256 billion coins every year. With such a big production, it’s not a stretch to say that there’s a big number of Dogecoin enthusiasts out there. In fact, the mining of the digital currency reached its 100 billionth coin by June 30 of 2015. Additionally, there exists a strong community of people that use the open source peer-to-peer digital currency on a regular basis.
Despite its noteworthy success, the digital currency does not currently have many mainstream uses. However, it is widely used in certain online communities for making small payments and tipping. It is also used in social media by users who want to reward each other for providing quality content. Furthermore, the dogecoin community is extremely active and has a very strong online presence on sites like Reddit.
How to Use Dogecoin
With user-friendliness and security in mind, the cryptocurrency is used through a downloadable software that functions as a digital wallet. This digital wallet is known as MultiDoge. Additionally, users have the options of getting either an online or a paper wallet. However, the downloadable digital wallet is probably the most popular option because of its added security.
After obtaining a MultiDoge digital wallet, you will need to let it synchronize with the Dogecoin network. Once it synchronizes, you can begin using the wallet. The first step for using the coin is obtaining it. You can gather coins by buying them, trading for them, getting tipped and participating in contests where organizers offer free Dogecoins. Another great option is mining, a process for securing the network and verifying transactions. After that, you can use it for various types of transactions.
5 Advantages of Using Dogecoin
1. Low Transfer Fees
Similarly, to what happens with other cryptocurrencies, its transactions are not burdened by fees of any kind. This is possible because the network rewards miners and other operators directly. However, there are third-party services that provide online exchange systems by charging small fees.
Of course, one of the most important characteristics of Dogecoin is its mining feature. It allows users to use special hardware and computer programs to process Dogecoin transactions for other people. Users basically search for blocks in order to solve them and confirm them. Currently, the payout can get as high as 1,000,000 coins per solved block. Not only does the activity benefit the community, but also rewards miners with Dogecoin.
3. Universal Access
One of the greatest features of this digital currency (as well as other cryptocurrencies) is the universal access it provides. There are millions of people all over the globe without access to traditional exchange systems.
Thankfully, these people can gain access to Dogecoin exchange systems simply by using a computer or a smartphone. Additionally, the digital currency provides a great system for tipping, rewarding and donating to people online. The dogecoin to USD exchange rate is of 2,858.86 for each dollar.
4. No Settlement Delay
Contrary to what happens when buying property traditionally, Dogecoin does not involve a number of third parties such as lawyers and notaries. It does not usually involve any type of blocks, delays or payment of fees either. Like other cryptocurrencies, it functions as a large database of property rights. The result is a process that is faster, cheaper and more effective than traditional asset transfers.
5. Reduced Identity Theft and Fraud
The digital currency uses a push system instead of the traditional pull systems used by credit cards. This implies that you won’t have to give a merchant your full credit line or any other additional information.
We can conclude that Dogecoin is a useful cryptocurrency. You can use it complementarily to Bitcoin and bank notes or credit. Even though it does not have a huge presence in mainstream financial transactions, it has become a useful tool for online transactions, particularly within certain communities and organizations.
Even if you are skeptical, the advantages of using the cryptocurrency outweigh the disadvantages by far. Despite any negative opinions, more businesses are adopting it each day. Soon, mass acceptance will make cryptocurrencies such as Dogecoin a mainstream digital currency. Do you know any other advantages of cryptocurrencies? Leave us a comment!