Making Sense of Cryptocurrency

I decided to give my take on Dogecoin but I think that would be difficult if a person didn't have a basic understanding of cryptocurrency in general first. Cryptocurrency is a form of online currency that has been around since 2009 starting with Bitcoin. In lieu of writing out a Getting Started with Bitcoin, I decided it best to link the guide created by weusecoins.com as well as a Getting Started Guide for Dogecoin. As you can see in the first guide multiple places exist where you can not only spend your Bitcoin's but also convert them into physical money. Cryptocurrency has a predetermined cap amount at which point no more digital coins can be produced, unlike physical money that is printed with no regard of how much is actually in circulation. Digital coins are also impossible to counterfeit, again unlike the dollar, so if there are said to be 1 Billion Dogecoin available than you can bank on that being the actual number.

Arguably, the two most newsworthy of the cryptocurrency bunch would have to be Bitcoin and Dogecoin. Bitcoin reports tend to switch between statements of how it's going to revolutionize the internet or how it's a dangerous scam that nobody can truly predict or understand. This report on Bitcoin replacing PayPal is an example of the former, with digital currency you have lower transaction fees than you would find with either a bank or specifically in this case, Paypal. An example of the latter can be found in this article, just like with physical money there are going to be unsavory individuals that want what you have and are willing to take it. Dogecoin's reputation is different, it seems most of what you hear about regarding Dogecoin is in its fundraising. I will talk more about everything Dogecoin has done in my post about it specifically so I'll just touch on its recent headlines. On March 25, 2014, the Dogecoin community raised 67.8 million Dogecoins, equivalent to ~$55,000 at the time($26,875 today), sponsoring NASCAR driver Josh Wise. The Dogecoin community has continued its support of Wise recently helping him to beat out Danica Patrick for a spot in the Sprint All-Star Race through an online fan vote.

Hopefully this will give a person an understanding of what cryptocurrency is, Dogecoin and Bitcoin may both appear to be the same thing on the surface but they are actually pretty far apart. At the time of this post 1000 Bitcoin, also read as 1000 or 1000 BTC is valued at $593,444.32 whereas 1000 Dogecoin, also read as Ð1000 or 1000 DOGE is valued at $0.40.