Explore the world of cryptocurrency via Dogecoin, its technology and all-time high achievements. Gain insights into the unique features and historical performance of Dogecoin in the dynamic crypto landscape.
Introduction To Dogecoin
Dogecoin (DOGE), featuring the Shiba Inu dog from the “Doge” meme as its logo, emerged in 2013 as a light-hearted and community-driven cryptocurrency. With its origins rooted in internet culture, Dogecoin has become a notable digital asset. Explore the cryptocurrency’s journey, including its all-time highs and current trends, through the Dogecoin chart.
History of Life and Rise
Launched on December 6, 2013, by IBM engineer Billy Marcus and Adobe engineer Jackson Palmer, Dogecoin swiftly gained popularity, fueled by the widespread recognition of the Shiba Inu meme. Initially embraced by individuals experimenting with cryptocurrencies, Dogecoin’s trajectory changed as platforms like Reddit began rewarding content creators with Dogecoins. This trend sparked increased interest and trading activity, influencing the values of other cryptocurrencies, including Bitcoin.
Elon Musk’s Influence
Throughout its existence, Dogecoin has experienced notable support from entrepreneur Elon Musk. Musk’s tweets, featuring a faux “Doge” magazine cover and the famous “Doge barking at the moon” post in April 2020, significantly impacted Dogecoin’s value. Musk’s social media interactions have contributed to notable surges in Dogecoin’s market value, underlining the influence of popular figures in the cryptocurrency landscape.
Technology Behind Dogecoin
Dogecoin, like other cryptocurrencies, operates on blockchain technology, which involves a decentralised network of nodes globally. Each transaction carries a unique timestamp, and the data within each block is encrypted and shared across all network nodes. The secure nature of this distributed ledger system makes it highly resistant to unauthorised access.
To compromise the Dogecoin system, an individual would need to successfully hack all blocks simultaneously—an exceptionally challenging task in the current technological landscape, ensuring the safety of investments in this cryptocurrency.
Similar to the process of mining other cryptocurrencies like Bitcoin, mining Dogecoins requires a sufficiently powerful computer and a designated Dogecoin wallet. A robust CPU is essential for effective mining. However, given the increased popularity of Dogecoin, mining competition has intensified. Individuals with standard hardware may find it challenging to compete with large-scale companies engaged in continuous mining operations. Joining a mining pool or opting for cloud mining services are viable alternatives.
It’s important to consider associated costs, including electricity, internet bills, mining pool or cloud mining service fees, and Dogecoin blockchain network fees. The mining cost per coin should not surpass the value of one Dogecoin to maintain profitability. If costs exceed earnings, a strategic reassessment may be necessary.
Mining Dogecoins independently, known as solo mining, can be a lengthy process, potentially taking weeks or even months to mine a single block. However, all block rewards accrue to the individual miner. Notably, Dogecoin’s mining process is less resource-intensive than that of Bitcoin, employing the Scrypt algorithm, which consumes less power than Bitcoin’s SHA-256 algorithm.
How to Buy Dogecoin in India?
Acquiring Dogecoins is a straightforward process facilitated by various brokers and exchanges. Reputable sources for purchasing Dogecoins include platforms such as BuyUcoin, eToro, Crypto.com, Binance, Coinbase, and more.
Here’s a step-by-step guide, using BuyUcoin as an example:
- Open a Digital Wallet:
– Choose a reliable digital wallet to securely store your Dogecoins.
- Register and Complete KYC:
– Register an account on the chosen platform and complete the KYC (Know Your Customer) verification process.
- Add Banking Details and Create Trading PIN:
– Provide your banking details on the platform and set up a trading PIN for added security.
- Start Trading:
– Once your account is set up and verified, you are ready to start trading Dogecoins.
Taxation on Dogecoin
In India, the buying, selling, and holding of cryptocurrencies are legal activities. However, cryptocurrencies cannot be used as legal tender. Holding crypto assets does not incur any tax deductions. When selling crypto assets, the government levies a tax on the generated profit.
As of April 1, 2022, the Indian Government applies a flat 30% tax on crypto assets. Additionally, starting from July 1, 2022, a 1% TDS (Tax Deducted at Source) charge will be applicable to all cryptocurrency transactions.
There are discussions about implementing a 28% GST (Goods and Services Tax) charge on top of the 30% tax deduction, but this has not been implemented as of now. It’s essential to stay updated on any changes in regulations to ensure compliance with taxation requirements.
How Dogecoins Work?
Dogecoin’s functions are fundamentally similar to those of other cryptocurrencies, particularly those like Bitcoin which were primarily designed for payments. Dogecoin uses a proof-of-work consensus mechanism, which means transactions are validated through mining.
In exchange for validating transactions and adding them to the blockchain, miners are rewarded with Dogecoins, which they can sell on crypto exchanges or hold in their wallets
