Dogecoin is a currency based on an internet dog meme. If you thought it can’t get much better than that, wait until you find out how to mine it. That’s right, Dogecoin is a Proof-of-Work (PoW) cryptocurrency, able to be mined just like Bitcoin or Ethereum. In this post, we will be going over what DOGE is, and how to start mining it yourself.
Dogecoin has been around since December 2013, making it a first gen cryptocurrency. Back in it’s prime, Dogecoin was up in the ranks, often in comparison with Litecoin and Bitcoin. While internet memes usually have a short lifespan, there are many technical reasons that keep Dogecoin relevant, even in the long term. Currently, Dogecoin is rank #20 in terms of market capitalization, currently at $251.14M
Today we celebrate the 5th birthday of Dogecoin by sharing the OG Doge Meme that started it all, wow, such birthday!#Dogecoin #memes #crypto #cryptocurrency #doge #tothemoon #wow #moonsoon #dogecoinmoon #original #classic #first pic.twitter.com/3zlJcRgwnE
— Dogecoin Memes (@DogecoinMemes) December 6, 2018
Dogecoin mining works just like any other cryptocurrency that uses the PoW consensus mechanism. The process of verifying Dogecoin transactions on its native blockchain will reward you with new Dogecoins. While DOGE is a PoW token, there are many features that make it different from other coins. For example:
Dogecoin uses the Scrypt mining algorithm. Scrypt uses far less computing power than the SHA-256 algorithm used by Bitcoin. As well as this, it’s also much faster to mine a block.
The average time it takes to verify a block of transactions and add it to the blockchain is also vastly better. For example, Bitcoin has a block time of 10 minutes. Litecoin aims to be 4x faster than bitcoin, and the result of that is 2.5 minute block times. But Dogecoin takes the cake, with a block time of 1 minute.
All cryptocurrencies have their own mining difficulty. This is in place as a tool to estimate your probability of winning the lottery that is cryptocurrency mining. Usually, the network difficulty is determined by the number of miners on the network. Dogecoin has a difficulty of 2713482.2088, making it 1 million times less difficult to mine than Bitcoin.
Mining rewards are the amount of freshly minted coins that miners will receive for mining a new block of transactions. Dogecoin offers 10,000 DOGE per block (about $20).
Regardless of the mining hardware that you’re using, you’re going to need some software to go with it. When mining cryptocurrencies, one of the best things you can do is find a piece of software that works best with your hardware. Here is a short list of some good free mining software:
Most people mine Dogecoin because it’s fun, and they are loyal members of the Dogecoin community. Dogecoin is probably the most popular coin for first-time miners and random people who just want to get into crypto in a fun way. While the coin may not hold much value (at the time of writing; 1 DOGE = $0.00207581), for a coin that was expected to die just weeks after it’s launch, it’s not doing too bad.
Any coin that can go 5 years past its expiration date and still be relevant is a good coin in my books.
This article is intended to educate and should in no way be seen as investment advice or an enticement to use the ice3x.com platform. Bitcoin is highly volatile with big profit opportunities but you should also remember that you could lose part or all of your investment whenever you take part in any high risk investment. Bitcoin trading is not a regulated industry in South Africa, which in itself carries additional risks. IF YOU ARE NOT AN ASTUTE BITCOIN TRADER, SEEK INDEPENDENT FINANCIAL ADVICE BEFORE MAKING ANY INVESTMENTS.