Like all new types of cryptocurrency, Dogecoin has a unique story behind its creation and rise to prominence. Based on the genetic makeup of the Bitcoin, the Dogecoin was invented by an American man named Billy Markus. Hailing from Portland, Oregon, Markus set about the task of creating a “fun” type of cryptocurrency that would be used in a different primary function than the Bitcoin, but operate in a similar fashion. Markus wanted to develop a currency that had a broader appeal to a larger market segment than Bitcoin had established. These differences between his currency and Bitcoin were intentional, as he sought to distance his new product from the negative connotations that Bitcoin was conjuring up at the time. The revelations about the Silk Road online drug marketplace that was using Bitcoin to avoid police capture had brought up a few negative public relations moments for the Bitcoin Empire and Markus wanted to break away from that completely.
Markus was a programmer by trade, and he needed some help to bring his idea from conception into reality. Another man, this time an Australian named Jackson Palmer, showed interest in this topic when he heard about it on Twitter. The two came together to start their collaboration soon after. During this refinement process, Markus started to include the preexisting model of the “Luckycoin” which offers miners a random prize for each block that is mined. With this new template in place, the idea flourished. Dogecoin was launched on December 8, 2013.
Dogecoin had an incredibly tumultuous start in the cybercurrency market. It was created on December 8, 2013. On December 19, only 11 days later, the Dogecoin jumped in value unexpectedly. The value went upward to over 300 percent of the value at the beginning of the day. This is suspected to have followed the announcement by the Chinese government outlawing the Chinese banks from investing their state approved currency into Bitcoins. This success was short-lived however, as the same Dogecoin that had risen so sharply on December 19, plummeted downward three days later. On December 22, 2013, Dogecoin dropped like a freefalling stone to an 80% loss.
On December 24 of that same year, the Reserve Bank of India released an international caution for Dogecoin users and holders of other cryptocurrency that there were immense risks associated with this type of investment and to proceed at your own risk. The Dogecoin community came together and started “Save Dogemas” to help rebuild their Dogecoins and reestablish their worth. Through this strong community initiative, enough money was donated to cover losses and the Dogecoin recovered fully. Today, the Dogecoin has a market capitalization of approximately $25 Million in US dollars!
Categories: Bitcoin articles