What are the problems behind Dogecoin and why does it still exist?
Dogecoin was initially rumored to be a Crypto Joke
Dogecoin is a cryptocurrency which has a picture of a dog on it. The logo has the picture of a Shibe photoshopped onto a coin.
A lot of cryptocurrencies have been created ever since the birth of bitcoin. These alternate crypto coins conducted serious campaigns and were motivated to gain significance in terms of popularity when compared to bitcoin. In terms of promotional campaigns, Dogecoin was completely different to these alternate coins. Developed by Jackson Palmer in 2013, it was based on an internet meme that was popular at the time. Billy Markus, a gaming software engineer at IBM, said that creating Dogecoin was no different from a ‘find and replace task’
Ctrl + F ‘Bitcoin’, replace with ‘Dogecoin’
It’s quite uncanny if you come to think about it. Who would have thought that a coin which was perceived as a joke in the crypto-community, would eventually gain so much popularity?
In its early days, Dogecoin was acknowledged by the hodling community as it was easy to use, cheap to buy, had an unlimited supply and had a very small block size of about one minute.
Problems Associated with Dogecoin
- The Dogecoin community began to lose faith in the coin when the founder, Jack Palmer, deserted the project. With Palmer leaving, the purpose of the coin seemed vague.
- No enhancements have been made to the coin over the last few years. In the world of cryptocurrencies, developments are added to the coins nearly every week. Ripple and TRON make products and partnerships almost every other week.
- The coin’s value has been struggling to keep up with inflation rates, and investors are steadily pulling their money back from this cryptocurrency.
- Dogecoin is no longer being talked about in renowned blockchain forums and subreddits. Coins more recent to Dogecoin; like Reddcoin using the ‘Proof-of-Stake velocity’ algorithm, and Karma using the ‘X11 Hashing’ algorithm — have gained momentum.
All these factors make Dogecoin less stable, less secure and less widely accepted.
So why does it still exist? How is a joke of a cryptocurrency still doing better than tokens of official companies? Your answers are right here on Bank of Hodlers-Blog.
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This article was written by our Guest Writer, Nilesh Agrawal.
