Understanding Dogecoin – General Overview
Dogecoin (DOGE) is a peer-to-peer, open-source cryptocurrency. It is considered an altcoin and an almost sarcastic meme coin. Launched in December 2013, Dogecoin has the image of a Shiba Inu dog as its logo.
While it was created seemingly as a joke, Dogecoin's blockchain still has merit. Its underlying technology is derived from Litecoin. Notable features of Dogecoin, which uses a scrypt algorithm, are its low price and unlimited supply.
How Does Dogecoin Work?
Dogecoin marketed itself as a "fun" version of Bitcoin with a Shibu Inu (Japanese dog) as its logo. Dogecoin's casual presentation suited the mood of the burgeoning crypto community. Its scrypt technology and unlimited supply was an argument for a faster, more adaptable, and consumer-friendly version of Bitcoin.
Dogecoin is an "inflationary coin," while cryptocurrencies like Bitcoin are deflationary because there's a ceiling on the number of coins that will be created. Every four years, the amount of Bitcoin released into circulation via mining rewards is halved, and its inflation rate is halved along with it until all coins are released.
Dogecoin Mining – Know The Basics
Dogecoin is one of the high return coins to mine in 2021, having returned 59033% on investment as of the end of October 2021, beating Bitcoin and Ethereum. You get rewarded 10,000 Dogecoins from a single block mined in a minute, and each coin is worth $0.301 in October 2021 up from $0.0056 in January.
Mining Dogecoin profitably requires using ASICs (Application-Specific Integrated Circuits) to run the Scrypt algorithm. Some mining pools allow you to contribute SHA 256 hash rates and get paid in Dogecoins. However, it is advisable to stick to the Scrypt mining of Doge.
A single block of Dogecoin has a 10,000 DOGE reward and takes just a minute to mine. Therefore, 1000 Dogecoin will take less than a minute to mine. If you were mining with an ASIC, that would be the case. The amount of Doge to mine per specific time depends on the hash rate of your machine or hash rate rented on a cloud mining website.