Dogecoin

Dogecoin (XDG) is a cryptocurrency which uses blockchain technology to secure transactions. Dogecoin is marketed using a popular internet meme (the doge) with the goal of appealing to a non-tech audience. It uses proof of work technology to process transactions and generate new dogecoins.

The Dogecoin cryptocurrency was developed based on the Litecoin source code. The cryptocurrency was launched with an initial limit of 100 billion units which could be mined in total. This very high limit differentiates Dogecoin from cryptocurrencies like bitcoin which have relatively low mining limits. Because the time required to mine a Dogecoin transaction is relatively short and the limit on the number of units which can be mined is high, the supply of Dogecoin has been consistently high in relation to demand.

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Daniel Dreier is editor and personal finance expert at moneyland.ch.

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