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- Bitcoin’s positive advent in 2021 with improved benefits
- The origin of Dogecoin’s concept as a joke
- The supply of coins has no cap on it ensuring a worthy value proposition
Gains of cryptocurrency have impressively advanced into 2021.The current growth of Bitcoin is to acknowledge positively. With its value trading at an all-time high, it is steadily approaching $36,000.00 per BTC. The aforementioned numbers represent double the record high value accomplished in 2017. This was before the values suddenly dropped in 2018. 2021, hence, is coming across as totally different in the cryptocurrency universe than what transpired in 2018.
The Advancing Network Of Cryptocurrency
Yes, Ripple is being sued by the Securities and Exchange Commission. On the other hand, the government has claimed XRP as a security. This has resulted in a crackdown of the coin’s prices. However, the universe of cryptocurrency still exists on a solid huge network. Bitcoin has essentially taken over and seems like it is not going anywhere anytime soon. Similarly, Ethereum is building a powerful space for itself. Litecoin, Lumens, and LINK too are advancing in a healthy manner. Hence, the cryptocurrencies are on a conquering spree.
The Lesser Know Facts About Origin Of Dogecoin
Amidst the variety of cryptocurrencies, Dogecoin is usually considered a joke. It’s value has historically continued to be in fractions of a penny. Created by Jackson Palmer and Billy Markus, its aim was to satirize the expansion of altcoins by establishing the internet meme of doge into a cryptocurrency. A derivative of Luckycoin, it casually forked from Litecoin and employs a Scrypt algorithm. Its coin production schedule initially began with a circulation of 100 billion coins. the mid-2015 witnessed a historic episode when the 100 billionth Dogecoin was mined. Every year since then, supplementary 5 billion coins have been circulated.
Working of a Dogecoin
The coin has no limit to its inflation value since there is no cap to its supply. The initial supply limit of 100 billion coins was removed by the Dogecoin founder Jackson Palmer in February 2014. His eventual announcement declared complete removal of cap. In contrast to this cap removal, all other cryptocurrencies have an essential cap value on the number of coins the system will sustain. Eight years down the lane, the Dogecoin still continues to trade around a penny. The increase is hence significant considering its historic low faction of a penny price.
The complex association with mining activities
It is the mining activities which are keeping alive the ecosystems of cryptocurrency. Such activities usually require the miners to maintain nodes on the network and process transactions associated with the cryptocurrency rewards. The supply of BTC is currently capped at 21 million coins. On the other hand, the rewards for mining have been on a decrease. The reduced coin count has led to no serious changes in the miner behavior because of the increase in prices of Bitcoin. Miners are possibly expected to flee the Bitcoin network for more lucrative currencies. Further, it would cause major harms to the network.
Conclusion
There exists a lot of value propositions for Dogecoin. The increase in the value proposition happens because of the fact that it is not capped. The whole mining ecosystem recognises the benefits for supporting the network. Meanwhile, there exists no rush to an “alleged” hard cap. This stabilises the future prospects of the network. Thus, the value of Dogecoin is currently going up which further ensures growth in the ecosystem. Though the artists and content creators tipping each other marked its beginning, it has developed into a fully operational currency that can be employed for daily purchases. Dogecoin can be conveniently obtained more to keep the ecosystem alive and functional. With more than 5% growth possibility in Dogecoin usage, the value can be expected to go up in a given year.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
