What Is Dogecoin (DOGE) and How Does It Work?

Dogecoin is one of the most mentioned cryptocurrencies on social media, rising spectacularly in value and taking the crypto market by storm. Starting out as a meme coin in 2013, it’s become one of the most profitable cryptocurrencies of 2022 so far.

With Elon Musk completing his purchase of Twitter, there’s speculation he’ll integrate Dogecoin into Twitter, which is creating considerable hype. Not surprising, then, that Doge has shot into the top 10 cryptocurrencies by market cap. However, due to its uncertain nature, there’s plenty to consider before deciding to invest in it. You need to know a little about the coin itself, the people who run it — and its upcoming plans.

What Is Dogecoin?

Dogecoin, whose name comes from an internet meme of a Shiba Inu dog, is a decentralized cryptocurrency with a large and active community. Since it’s a decentralized crypto, people can conduct peer-to-peer (P2P) transactions with it. Like all cryptos, it runs on blockchain technology.

Cryptocurrencies such as Bitcoin (BTC) have a limited supply, but Dogecoin doesn’t. As of November 2022, around 132 billion DOGE are in circulation. Approximately 5 billion DOGE will enter the circulating supply each year, with an annual foreseeable inflation rate of around 4%.