Dogecoin is One Step Closer to Being Real Money

Launched in early December 2013, Dogecoin has become an established player in the world of virtual currencies, making it to the top five of world cryptocurrencies.

“The doge meme takes its name from a reference on an episode of a popular 1990s internet cartoon series called Homestar Runner. The term ‘doge’ was revived, mashed-up with a quirky photo of a pet Shiba Inu dog and then sprinkled with a few ungrammatical phrases written in the much-maligned comic sans font. Last year, it exploded across the internet,” says dogecoin co-creator Jackson Palmer. Photo: jdraimer/ Flickr

Crypto-currencies are becoming more and more popular, and their combined market value can now be estimated in the billions of US dollars. New crypto-currencies are being created every day, and now there are at least 83 different of them on the market.

Now, one of the most famous crypto-currencies is Bitcoin, however, it is about to give its place to seven-week-old Dogecoin, as since its creation on December of 2013, dogecoin has become fifth most valuable in the world.

It was first viewed as somewhat of a joke as it was based on the most popular internet meme of 2013, which features pictures of Shiba Inus dogs which have been enhanced with Comic Sans text that’s supposedly represents the dog’s inner monologue. “Wow. Such money. Very currency. So crypto.”

Nevertheless, it is not joke for its creators and, of course, traders. Even though, one dogecoin’s value is nothing for the real world and stands for about .00143792 per one U.S. dollar, dogecoin is becoming a favorite of crypto-currency GPU miners.

Actually, the value of dogecoin has recently jumped more than 12%, boosted by news that it has moved away from dependency to bitcoin, as well as another successful fundraising campaign( dogecoin enthusiasts raised about $30,000 to send the Jamaican bobsled team to the 2014 Winter Olympic Games in Sochi, Russia.)

Dogecoin’s trading volume (the number of dogecoin’s transferred from one “wallet” to another) far surpasses any other crypto-currency. According to BitInfoCharts.com, the number of dogecoin transactions come up to 117,000. That’s higher than all other cryptos, including bitcoin (55,487 transactions). It basically means that people are using Dogecoin more, if only because each coin is worth so little.

It may be pretty easy to pick up some Dogecoin, but, until now, it’s been difficult to convert it into cash.

Earlier, dogecoin traders have flocked to Cryptsy.com, a South Florida based cryptocurrency exchange, but you have to go elsewhere to convert your cryptocurrencies into official or fiat currencies, such as U.S. dollars.

There is also China-based Bter.com for trading dogecoins, as well as Canadian electronic currency exchange Vault of Satoshi announced Wednesday that it will now support Dogecoin, making it far easier to convert the currency into U.S dollars.

Previously, anyone interested in turning their dogecoins into government-backed currency with wider acceptance had to make an individual deal with someone willing to trade for Bitcoin, which could then be exchanged for dollars, Euros, and the like. However, this intermediate step not only made the entire process significantly more onerous, but it also inserted an element of risk, says The Daily Dot.

However the community which built up around the currency was based on generosity and kindness, rather than looking to make money, which saw dogecoin become the second most-tipped currency online within a week of launching.

On one hand, that generosity is undoubtedly related to the fact that a single dogecoin is worth a tiny fraction of a penny, so handing out a few dogecoins takes only slightly more commitment than liking something on Facebook.

Now that converting dogecoins into dollars is no more difficult than exchanging any other cryptocurrency, there’s the chance that the community surrounding Dogecoin may come to more closely resemble that of any other cryptocurrency.

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