What Is Dogecoin And Who Created It?

Over the past decade, cryptocurrencies have increasingly become part of the global financial system, serving both as an investment tool and a way to earn money. Among countless coins, Dogecoin (DOGE) holds a special place; what started as a joke quickly spiraled out of control and turned into one of the most intriguing crypto assets.

In this article, we will break down what Dogecoin is and how it works and explore the reasons behind its massive popularity. Keep reading to find out how a meme coin can become a profitable asset and a real earning opportunity.

What Is Dogecoin?

Dogecoin is a meme coin built on a modified version of Bitcoin’s open-source code to conduct faster (33 TPS) and cheaper (approx. $0.001) transfers. Like BTC, DOGE runs on blockchain technology and utilizes the Proof-of-Work (PoW) consensus mechanism to support the mining.

Initially, Dogecoin started as a joke inspired by the popular meme featuring a dog named Kabosu, a Shiba Inu breed; but over time the community has become so strong that it has markedly boosted the coin’s market capitalization and price. According to CoinGecko's first data, DOGE cost $0.00055878 in December 2013 and is now, in February 2025, around $0.21. Since then, the coin has increased in value by 37,482%. The development of Dogecoin is also indicated by the market capitalization, whose maximum has reached almost $89 billion in May 2021.

A major source of DOGE’s value is derived directly from the strong and supportive community backing the project. The number of users keeps growing, pushing the coin’s value, thanks to the support of high-profile figures like Elon Musk and Snoop Dogg.

How Was DOGE Created?

Dogecoin was developed by programmers Jackson Palmer and Billy Markus in December 2013. Their original purpose for DOGE was to create a cryptocurrency for instant payments with low fees. At the same time, according to their idea, the new coin should have stood out from traditional cryptocurrencies and banking systems with its creativity and humor.

Markus and Palmer copied Bitcoin's source code and changed the default font of phrases to Comic Sans, which has since become a signature element of the brand. Later, they bought the domain name “Dogecoin.com” and launched the project's official website. Within days of its release, site traffic surged, and DOGE’s trading volume skyrocketed to over a million, quickly capturing the public’s attention and forming a strong community.

However, it should be noted that Dogecoin has never had a centralized authority, as the community plays an important role in project management. The community has repeatedly demonstrated its strength in rejecting hacker attacks and making changes to the project.

How Does Dogecoin Work?

As was mentioned, Dogecoin runs on the DeFi space’s pioneer—Bitcoin, or to be more precise, on its code. Digging deeper, DOGE was created as a hard fork of the now-defunct Luckycoin, which in turn was a fork of Litecoin (LTC). It inherited Litecoin’s Scrypt-based consensus mechanism, enabling compatibility with Bitcoin-derived functions, including mining.

Dogecoin operates on its own blockchain where transactions are validated by miners. Unlike Bitcoin, which has a limited supply of 21 million coins, DOGE has no maximum, and as of now, there are 147.72 billion in supply. At the same time, DOGE coins do not burn, which highlights its inflationary nature. However, despite this, Dogecoin has a limit of 5 billion coins issued per year, which reduces the inflation rate and makes it an excellent choice as a currency.

Going back to mining, Dogecoin’s system does not require significant computational resources, allowing even basic-level computers to mine DOGE; you can also use CPU, GPU, or ASIC devices. In terms of approach, joining a mining pool can be the most profitable option, as it helps reduce the risk of financial loss. In addition, Dogecoin miners can combine it with Litecoin without additional effort, making the process the most profitable.

Why Is DOGE So Popular?

Crypto enthusiasts are talking about Dogecoin more than ever, so let's figure out some of the reasons behind Dogecoin's great popularity:

• Elon Musk and his endorsement: he was one of the first celebrities to express great support for Dogecoin on X. Following his tweet in 2021, “Dogecoin is the people’s crypto”, the price of the meme coin rose 16% in just 15 minutes after publication. And in 2023, Musk changed the X social network logo to DOGE’s Shiba Inu dog, triggering another price surge. More recently, Musk has put forward a proposal at the White House to create its own D.O.G.E. (Department of Government Efficiency), which sparked a strong public reaction.

• Democratization and widespread acceptance: near-zero commission, instant transactions, and quite simple mining processes attract ordinary users, which makes the community expand and become stronger. Users are so united that, with the help of Dogecoin, they even held charity fundraisers in X for various charitable organizations and foundations.

What Is Dogecoin Used For?

We have prepared for you the most common ways to utilize your coins:

• Pay: DOGE is mostly used for tips or donations within the community; this is absolutely logical, as its value is low. Now the range of Dogecoin applications has expanded markedly: you can pay for online content on sites like Newegg, donate on social media such as Reddit and X, make payments in Tesla, and use it for crowdfunding, which is often organized in the community of DOGE holders.

• Trade: due to its high volatility, DOGE is well-suited for short-term trading strategies like scalping or day trading.

• Store in a wallet: keep your DOGE securely stored in a cryptocurrency wallet. This is a great option if you plan to hold it as a long-term investment. The next time the price of Dogecoin rises several times after a high-profile event, you can make good money.

Nevertheless, it should be remembered that Dogecoin is not safe for long-term investment due to its high risk, volatility, and dependence on media hype. However, you can still profit from this cryptocurrency through mining, as it plays an important role in the uninterrupted functioning and security of the network.

How To Buy Dogecoin?

After exploring the ways to use DOGE, it’s time to make a purchase. You can do it on various crypto platforms, and one of the easiest ways is through Cryptomus, which we will use as an example:

1. Sign up: on the Cryptomus platform, you should enter your name and email to register, or do it directly via email, Telegram, or Facebook.

2. Complete the KYC verification: go to your account settings and click the “KYC Verification”. Take a passport photo and later snap a quick selfie.

3. Buy DOGE: you can purchase the coins in several ways, including P2P trading and using a bank card. If you prefer P2P, go to the main page and apply filters to find the best offers from sellers; the platform’s algorithms will match you with suitable offers. Choose the one that fits you best, make the deal, and wait for DOGE to arrive in your account.

If you prefer to buy coins via bank card, go to your account, select “Buy Crypto”, and click on “Buy by Card”. Once you have filled in all the required details, complete the payment by entering your card details and making the payment.

As you can see, Dogecoin is not only a meme but also a convenient tool for payments and earning. By following these steps, you can easily integrate DOGE into your daily life.

Pros And Cons Of Dogecoin

To give you a clearer picture of Dogecoin’s advantages and disadvantages, we have prepared the table below:

Aspects	Characteristics
Pros	Characteristics - Low transaction fees ( ~$0.001). - Fast transactions (1 minute per block). - Active and friendly community. - Wide acceptance as a payment method (Tesla, AMC, Newegg, etc.) - Support from high-profile figures like Elon Musk and Snoop Dogg.
Cons	Characteristics - Unlimited supply may reduce value. - High volatility. - Limited use cases compared to more advanced blockchains. - Lack of serious development goals (originally created as a joke). - Dependence on hype and media influence.

Dogecoin remains one of the most recognizable cryptocurrencies, combining elements of a joke and a financial instrument for more meaningful purposes. This crypto is great for small transfers and tips, so you can safely choose it for daily use. With the Cryptomus exchange, you can easily trade DOGE with comfort and security!

What do you think about Dogecoin? Write in the comments.