Bitcoin mining is now ruthless, miners have made many custom systems designed solely for the purpose of mining Bitcoins as the price has fluctuated from around $600 to $1,200, then back to $1000 and it now stands at $863 (as of 12/12/2013). In the beginning of January 2013, the price was at $15. This had led to many others starting up their own cryptocurrencies.
The most recent addition to the family of cryptocurrencies, is called Dogecoin. The thing that sets Dogecoin apart from others is that this cryptocurrency is loosely based on a meme. The meme, referred to as “doge”, comes with it’s own doge-speak, which is a barely comprehensible language as an effective method of satire. At the writing of this article, it is hard to say of Dogecoin was solely deployed with the intent of being a satire or serving as an actual cryptocurrency.
Miners have recently started to flock to Dogecoin, there are more than 500 active miners utilizing their CPU’s and Graphic Cards to mint some Dogecoins. It does appear that there is some reality to Dogecoin (as far as any “digital currency” goes) that can be easily mined due to the low difficulty as Dogecoin is still in it’s early beginnings.
Dogecoin uses the same type of encryption that Litecoin uses, Scrypt. With this encryption, it cannot be efficiently mined using expensive ASICs (Application-specific integrated circuit) as compared to using ASICs to mine Bitcoins. The Dogecoin currency wallet has a chance to add a multiplier to a reward when a specific block is solved.
The cryptocurrency community appears to be using this as a satire to the popular trend in cryptocurrencies, a few exchanges and offers have been cropping around, with the price of one Dogecoin floating around 1/100 of a cent, or simply, 10,000 Dogecoins for a dollar. If this cryptocurrency catches on, do expect the price to have even more fluctuations as demand increases or decreases.
At the moment, the Dogecoin has all the makings of Internet humor. Currently the second highest regarded post on the reddit doge forum is titled “Such Moon! Very Going!“. Until the next time, “plz mine for much coins”.
More information on mining Dogecoins