What is Dogecoin?
Originally created in 2013 for satirical purposes, Dogecoin is an open source peer to peer digital currency. Its intention was to be an amiable more approachable cryptocurrency that could entice users who may have traditionally used Bitcoin, but deterred by its complexity. Dogecoin, unlike many other mainstream cryptocurrencies, is a deflationary coin, meaning there is no hard cap on the supply in circulation. It is known as a “currency for the people”, dubbed by Elon Musk as of late. Gene Simonds and Snoop Dog have also openly endorsed the crypto currency.
Dogecoin is a minable currency, just like Bitcoin. However as mentioned above, we know that there is no limitation as to how much of this coin will be in circulation. The technological ecosystem behind Dogecoin derives from the Litecoin prowess. It uses a Proof of Work (POW) algorithm, allowing miners to combine their computational power and solve mathematical problems and in return are rewarded with Doge coins.
The Dogecoin community is well renowned for raising funds for charitable purposes.
2014 Winter Olympics
The Dogecoin community and foundation have encouraged fundraising for charities and other notable causes. On January 19, 2014, a fundraiser was established by the Dogecoin community to raise $50,000 for the Jamaican Bobsled Team, which had qualified for, but could not afford to go to, the Sochi Winter Olympics. By the second day, $36,000 worth of Dogecoin was donated and the Dogecoin to bitcoin exchange rate rose by 50%. The Dogecoin community also raised funds for a second Sochi athlete Shiva Keshavan.
Inspired by the Winter Olympics fundraiser and smaller charity fundraising successes, the Dogecoin Foundation, led by Eric Nakagawa, began collecting donations to build a well in the Tana river basin in Kenya in cooperation with Charity: Water. They set out to raise a total of 40,000,000 ($30,000 at the time) Dogecoin before World Water Day (March 22). The campaign succeeded, collecting donations from more than 4,000 donors, including one anonymous benefactor who donated 14,000,000 Dogecoin (approx. $11,000).
On March 25, 2014, the Dogecoin community successfully raised 67.8 million Dogecoins (around $55,000 at the time) in an effort to sponsor NASCAR driver Josh Wise. The car was named the "#98 Moonrocket", and made its debut on May 4, 2014 at the Aarons 499 Sprint Series Cup Race.