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Introduction
Most people think cryptocurrencies are all about Bitcoin and Ethereum, but there’s so much more out there! Today, let’s dive into Dogecoin and how to buy it in Australia.
Dogecoin began as a joke, featuring a Shiba Inu meme beloved by the internet community. Unlike other “joke” cryptocurrencies, Dogecoin took off, capturing the internet’s heart and attention.
Fast forward to June 18, 2024, Dogecoin has skyrocketed to become the ninth-largest cryptocurrency by market cap, with people eagerly buying in.
So, what makes Dogecoin so special and what are meme coins anyway? Let’s explore its rise to fame and guide you on how to buy Dogecoin in Australia.
What Is Dogecoin?
Back in 2013, as Bitcoin started gaining traction, Billy Markus and Jackson Palmer decided to create Dogecoin with two goals in mind. They wanted it to reward content creators and engage the community, making cryptocurrency more accessible. They also aimed to make fun of the sudden and wild explosion of cryptocurrency valuations.
Dogecoin operates similarly to Bitcoin and other cryptocurrencies as a decentralised, peer-to-peer currency, enabling quick and secure transactions. Unlike Bitcoin, Dogecoin has no supply limit and is relatively easy to mine, using a Proof-of-Work consensus mechanism with Scrypt Technology like Litecoin.
Dogecoin is the first meme coin as its founders chose the popular Doge meme as Dogecoin’s symbol and name, and this playful approach helped spread the word and capture the internet’s imagination.
What are Meme Coins?
Meme coins, born from internet culture, are cryptocurrencies known for their humorous origins.
Following Dogecoin’s success, other meme coins like Shiba Inu (SHIB), Dogwifhat (WIF), and Bonk (BONK) emerged, capturing the interest of crypto enthusiasts. Despite their playful nature, these coins have built dedicated communities and influenced financial trends.
How Did Dogecoin Start?
Dogecoin was started in 2013 as a satirical take on cryptocurrencies and their ridiculous valuations. They combined a cryptocurrency and a meme, and the result was Dogecoin. Of course, they did not expect the currency to gain so much popularity.
Even though Dogecoin has had its ups and downs, today it has become one of the top 10 cryptocurrencies in the world.
How Does Dogecoin Work?
Dogecoin operates like other cryptocurrencies but with its unique twist. It was created through a fork of Luckycoin, which itself is a fork of Litecoin, explaining their similarities, including the use of the Scrypt algorithm.
Dogecoin, born from Luckycoin, inherited the ease of mining and efficient transaction times. Unlike Bitcoin, which uses a more energy-intensive mining algorithm, Dogecoin’s Scrypt algorithm is more energy-efficient and has lower hash rates. This means it’s quicker and easier to mine Dogecoin, with one block mined approximately every minute.
Consequently, 5 billion coins can be issued every year. Because there is no fixed number or date when this will stop, the number of Dogecoins is unlimited.
How Did Dogecoin Become So Popular?
How did a currency that started as a joke become so popular? Initially not taken seriously, Dogecoin became an instant hit with the internet community. Its ease of mining and acquisition, along with its outrageous concept, attracted people who enjoyed playing around with cryptocurrencies. This led to a value increase of over 300% at the end of 2013.
By 2014, the Dogecoin community set out to prove its utility by raising funds through “DOGE Donations” for various causes. They raised $30,000 to help the Jamaican bobsled team travel to the Winter Olympics in Sochi. This resulted in Dogecoin transactions briefly overtaking every other cryptocurrency in mid-January 2015.
The community continued its charitable efforts with initiatives like “Doge4Kids,” raising $30,000 for a charity providing service dogs to children with special needs. They also raised $7,500 within 24 hours to support Indian Luger Shiva Keshavan’s participation in the Winter Olympics.
In another notable effort, the Dogecoin community sponsored NASCAR driver Josh Wise, raising over 67 million DOGE ($55,000) to cover his car in the Shiba Inu meme for the Talladega Superspeedway race. This marked Dogecoin’s first advertisement at a significant sporting event.
Celebrity endorsements further boosted Dogecoin’s popularity. High-profile backers like Gene Simmons, Mia Khalifa, Snoop Dogg, and Elon Musk frequently supported the cryptocurrency publicly.
All these factors have contributed to Dogecoin’s growing popularity, sparking a rush to buy DOGE and pushing its valuation to new heights. Today, Dogecoin stands as one of the most popular cryptocurrencies in the world.
How to Mine Dogecoin?
If you don’t want to buy Dogecoin in Australia through a trading platform, you can mine it yourself! Mining is the process of creating new Dogecoins and entering them into circulation.
Here’s how it works:
What is Mining?
Mining involves validating and confirming transactions on the blockchain, a public ledger where all transaction data is stored. These transactions are grouped into blocks, which miners verify. In return for their work, miners are rewarded with Dogecoins.
How to Mine Dogecoin
- Solo Mining: Mine by yourself. This can take a long time due to high competition, potentially weeks or months to confirm your first transaction and mine a block.
- Mining Pool: Join a group of miners. While you pay a fee and earn only a small portion of the total reward, mining pools have higher success rates, meaning more frequent rewards.
- Merged Mining: This allows miners to simultaneously mine two different cryptocurrencies with the same computational power. For Dogecoin, this means miners can mine both Dogecoin and Litecoin at the same time, increasing efficiency and potential rewards.
The mining pools are the most common way to mine Dogecoins helping secure the network and also making a profit.
Necessary mining equipment
While you can still mine with a Graphics Card (GPU), this might lead to almost no profits as the energy bills are very high.
Instead, it is recommended to use a specialised hardware called Application-Specific Integrated Circuits, or ASICs. These powerful machines are designed specifically for mining Scrypt-based currencies like Dogecoin and Litecoin. They’re efficient but can be expensive
In short the list looks like this:
- A computer with Windows, Linux, or Mac OS
- One or more ASIC miners for Scrypt-based cryptocurrencies
- Power supplies for your ASIC miners
- An account with a mining pool
- Access to relatively cheap electricity
- A Dogecoin wallet for receiving your mining rewards
Dogecoin itself also provides a more extensive list of how to start mining.
Are Bitcoin and Dogecoin Similar?
Dogecoin was derived from Luckycoin, which itself is a fork of Litecoin, and Litecoin is a fork of Bitcoin. This lineage means Dogecoin shares some similarities with Bitcoin, such as using the Proof-of-Work consensus mechanism, offering quick and secure transactions, and being decentralised.
However, the similarities end there.
Bitcoin was created as an alternative to the traditional financial system, free from third-party control. While both cryptocurrencies use Proof-of-Work, Bitcoin uses the SHA-256 algorithm, whereas Dogecoin uses Scrypt technology.
Dogecoin was initially created as a joke, often referred to as a meme-currency. Unlike Bitcoin’s 10-minute block time, Dogecoin has a much shorter block time, taking just one minute to mine a block.
Additionally, Bitcoin has a finite supply of 21 million coins, while Dogecoin does not have a cap on its supply.
Where Can You Buy DOGE in Australia?
The best method to buy Dogecoin in Australia is through a cryptocurrency exchange or trading platform, such as Virgo, being a highly trusted and regulated exchange platform.
How To buy Dogecoin?
There are only a few steps to follow if you want to learn how to buy Dogecoin in Australia on Virgo.
- Create an Account:
- Go to the Virgo website.
- Enter your email address and set up a strong password to secure your account.
- Verify Your Account:
- Have your driver’s licence ready to verify your account.
- Deposit Funds:
- Deposit funds in your wallet without fees using instantaneously PayID or bank transfer.
- Buy Dogecoin:
Conclusion
Dogecoin has captured the imagination of the cryptocurrency community, fueled by endorsements from high-profile figures like Elon Musk. If you’re looking to start your journey into the world of cryptocurrencies, Dogecoin is a great option. In Australia, you can easily buy Dogecoin on reputable platforms like Virgo.
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