ALL NEWS

What is Dogecoin? How a joke became hotter than bitcoin

Apr 17, 2021, 12:46 PM

What is Dogecoin? How a joke became hotter than bitcoin...

    (CNN) — Dogecoin is the hottest, quirkiest cryptocurrency on the planet.

The total value of the dogecoins in circulation is nearly $50 billion — not bad for a digital currency that started as a joke.

It is the No. 5 most-valuable cryptocurrency on the market, according to CoinMarketCap, having increased more than 6,000% this year.

The price of a dogecoin doubled again Friday after Tesla CEO Elon Musk tweeted about it for the umpteenth time (more on that in a bit). Demand for Dogecoin spiked so much this week, it briefly broke Robinhood’s cryptocurrency trading system.

What is dogecoin?

Like all cryptocurrencies, dogecoin is a digital currency that can be bought and sold like an investment and spent like money.

Although each crypto is unique, it shares some similarities with its better-known peers — its code is based off the script for litecoin, for example. But it has a couple key differences.

Unlike bitcoin, which has set 21 million as the finite amount of the digital currency, dogecoin has 129 billion coins in circulatIon and will continue to make new blocks of coins available to mine each year. That’s part of the reason one dogecoin is currently valued at about three dimes and a bitcoin is worth about $62,000.

Although cryptos are gaining more acceptance as a currency for purchasing goods, dogecoin doesn’t have much mainstream real-world use. It has a few niche markets, including using dogecoin to tip online artists.

And its main differentiator — its active online community — is what makes the odd-ball currency so fun. The group, which is active on Reddit, has raised money (in dogecoin, of course) for charitable causes, and in 2014 it successfully crowdfunded a sponsorship to get Nascar driver Josh Wise to advertise dogecoin on his car.

“Dogecoin is not so much an alternative deflationary numismatic instrument as it is an inflationary leisured exploration of community-building around a cryptoasset,” wrote Usman Chohan, economist at the University of New South Wales Business School, in a paper updated in February about the digital currency.

How did it start?

Dogecoin was created December 6, 2013, by a pair of software engineers as a joke.

Billy Markus, an IBM programmer from Portland, Oregon, set to differentiate his crypto from bitcoin, which was steeped in mystery with an anonymous creator and at the time attracted a small, niche group of miners. Markus wanted his cryptocurrency to be open to the masses, according to Chohan.

Markus looked for help making his weird dream a reality and found Jackson Palmer, who worked for Adobe. Palmer purchased the domain dogecoin.com — a nod to the “doge” meme that was all over the internet at the time.

The website nods to its joke origins at the very top: Its Shiba Inu mascot is the first image on the page, mimicking the meme that inspired it, which features the same dog surrounded by a bunch of Comic Sans text in broken English.

On dogecoin.com, its mascot is captioned: “Dogecoin is an open source peer-to-peer digital currency, favored by Shiba Inus worldwide.”

Why is is so popular, all the sudden?

Dogecoin is no longer a joke. Its popularity has soared — astronomically, this year — buoyed in part by the mainstream adoption of bitcoin and other cryptocurrencies.

But Elon Musk is the loudest and most prominent supporter of dogecoin. One of his bizarre tweets to his 50 million followers can send the crypto surging. That’s what happened Friday, when Musk tweeted “Doge Barking at the moon” and shared a photo of a painting by Spanish artist Joan Miró, which is titled “Dog Barking at the Moon.”

Dogecoin has also enjoyed something of a cult status on internet message board Reddit, where a popular group — not unlike the WallStreetBets group behind GameStop’s rally — decided earlier this year to propel its value “to the moon.” Dogecoin soared over 600% in the wake of that push.

Whether or not its a smart investment remains an active question. The more-actively traded and more-widely accepted bitcoin is subject to extreme volatility, so dogecoin, too, could crumble without warning. But its rise this year has been stunning.

Not benefiting from the coin’s soaring growth is Markus, who sold all his dogecoin when he was laid off in 2015. He used it to buy a Honda Civic.

The-CNN-Wire
™ & © 2021 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

All News

The steel frame of the Francis Scott Key Bridge sits on top of the container ship Dali after the br...

Nick Perry

Baltimore bridge collapse puts the highly specialized role of ship’s pilot under the spotlight

The highly specialized role — in which a pilot temporarily takes control of a ship from its regular captain — is coming under the spotlight this week.

7 hours ago

Shopping carts are parked outside a Home Depot in Philadelphia...

MICHELLE CHAPMAN AP Business Writer

Home Depot buying supplier to professional contractors in a deal valued at about $18.25 billion

Home Depot will buy SRS Distribution, a materials provider for professionals, in a deal valued at approximately $18.25 billion.

8 hours ago

Killer Mike poses in the press room with three trophies he won at the 66th annual Grammy Awards on ...

Carter Williams, KSL.com

Recent Grammy winners highlight Ogden Twilight Concert Series lineup

Hip hop star Michael Render, known by his stage name Killer Mike, fresh off of three Grammy Award wins last month, is one of several musical artists set to headline this year's Ogden Twilight Concert Series.

9 hours ago

"Burn Book," by longtime Silicon Valley reporter Kara Swisher is seen, Friday, Feb. 23, 2024, in Sa...

Jeff Caplan

Jeff Caplan’s Minute of News: Telling tales about tech bros

Kara Swisher’s new book paints an ugly picture of Silicon Valley.

11 hours ago

pets...

Curt Gresseth

Don’t surrender pets to a shelter. Send in a pro to reverse bad behavior, says Utah trainer

An expert discusses controlling the unwanted behavior of pets.

11 hours ago

Exclusive video obtained by KSL NewsRadio shows Salt Lake hit-and-run in the Avenues neighborhood. ...

Eric Cabrera

WATCH: Exclusive video shows woman survives Salt Lake City hit and run

KSL NewsRadio has exclusively obtained footage of a Salt Lake City hit-and-run, where a woman was struck while out for a run in the Avenues.

11 hours ago

Sponsored Articles

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

front of the Butch Cassidy museum with a man in a cowboy hat standing in the doorway...

Bear Lake Convention and Visitors Bureau

Looking Back: The History of Bear Lake

The history of Bear Lake is full of fascinating stories. At over 250,000 years old, the lake has seen generations of people visit its shores.

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Wellsville Mountains in the spring with a pond in the foreground...

Wasatch Property Management

Advantages of Renting Over Owning a Home

Renting allows you to enjoy luxury amenities and low maintenance without the long-term commitment and responsibilities of owning a home.

Clouds over a red rock vista in Hurricane, Utah...

Wasatch Property Management

Why Southern Utah is a Retirement Paradise

Retirement in southern Utah offers plenty of cultural and recreational opportunities. Find out all that this region has to offer.

What is Dogecoin? How a joke became hotter than bitcoin