Edited by Vani Rao
Challenges supremacy of Bitcoin
The success of the Bitcoin has sparked a wave of other similar virtual currencies to enter the market. Dogecoin has taken the virtual currency market by storm, since its inception in December 2013. A similar currency based on bitcoin model crypto-currency featuring a cute Japanese dog for a logo, began its life as a theme of sarcastic jokes on Twitter and other social networking sites. The Dogecoin, created by Jackson Palmer, was initially perceived as a light-hearted approach to the serious aspects of finance and commercial transactions. However, Dogecoin is slowly gaining traction as an internet-tipping system. In its brief history so far, Dogecoin is challenging the highly popular Bitcoin to become a legitimate, widely accepted method for online transactions.
Promising Start: Potential to Become Next Bitcoin
Dogecoin has made a bright start in the virtual currency community in a span of only five months. Dogecoin leads the crypto-currency market in terms of supply, currently in excess of 78 million. Moreover, Dogecoin is ranked seventh in terms of market capitalization at its current value of $34 million. Many industry experts believe that the Dogecoin has the potential to replicate the super success of the Bitcoin since many reasons can be attributed to its early success such as:
- Dogecoin is gaining traction as the digital currency has benefited from its vibrant and accessible community. Moreover, press coverage from prominent sources has helped dogecoin to raise its profile.
- With the advent of internet shopping, Dogecoin is poised for an exponential growth in the micro-transaction space online.
- Dogecoin’s makers have made a right move by positioning it as a currency and not as a speculative investment.
- Access to buy Dogecoins is an easy process and it can be done by transferring money from a bank account to a virtual wallet.
- Dogecoin has a fast initial coin production schedule, as there will be approximately 100 billion coins in circulation by the end of 2014, with an increase of 5.2 billion coins every year.
Dogecoin Exchange Rates
On January 8, 2014, AltQuick.co became the first virtual currency exchange to launch DOGE/USD exchange rates. The Dogecoin prices have been mostly stable over the past one month. In May, DOGE has more or less stayed over the 2,000 mark, as indicated in the chart below. At the time of last reporting on May 22, 2014, the DOGE/USD pair was trading at 2,231. In more relatable terms, 1$ will fetch 2,231 dogecoins at the current market price.