Dogecoin: What is it and how much is it worth?

MARISSA HAYDEN
Dogecoin (pronounced dohj-coin) is a cryptocurrency with a price that has both skyrocketed and plummeted in recent weeks. With considerable interest, it may be time to lift the lid on this cryptocurrency and explore what it is, how it works and what a Shiba Inu dog has to do with it.

What is Dogecoin?

Dogecoin started as a joke by two software developers, Jackson Palmer and Billy Markus, who, in 2013, wanted to make a ‘fun’ alternative to bitcoin. The coin was inspired by a popular meme featuring a Shiba Inu dog, his baffled expression and internal monologue in broken English.

Dogecoin
Image source: Stanslavs (Shutterstock.com)

The coin is powered by litecoin and is considered an inflationary coin, because unlike bitcoin there is no finite number of coins that can be mined. Also, Dogecoin’s 1-minute block intervals make it faster than many other blockchains. Originally, the use of the funny meme was designed to satirise the rise of altcoins, but in time, the joke actually led to some practicality.

What can you do with Dogecoin?

Dogecoin is actually very similar to bitcoin, as it can be used to send value internationally to anyone. And in recent years, the coin’s network has increased and more vendors are accepting the unique token. In the US, for example, the coin can be used for online and in-store purchases via Bitpay, a cryptocurrency wallet. However, dogecoin is not as popular in Australia and its uses are mostly limited to trading and sending it.

→ Related article: How to buy bitcoin in Australia

Elon Musk and Dogecoin

Dogecoin’s link to the popular meme has seen it gain a large following. Recently the influence of Elon Musk, the CEO of Tesla and SpaceX, has tended to send investors flocking to invest in the cryptocurrency. The latest price surge was likely linked to the billionaire entrepreneur, who dropped a cryptic tweet on April 28 promoting his upcoming appearance on Saturday Night Live (SNL) on May 8 while referring to himself as the ‘dogefather’. Ahead of his appearance, Musk also tweeted, “Cryptocurrency is promising, but please invest with caution!”

Some analysts suggested that investors were jumping on to the coin before the techno-king’s appearing on SNL, which they expected could send the coin’s price to spike even higher. However, during a skit on SNL Elon Musk referred to the coin as a “hustle” and the coin’s value fell by 35%. The day after his appearance on SNL, the tech billionaire announced his plans for SpaceX to accept dogecoin as payment and shared this tweet soon after:

What is Dogecoin currently worth?

At the time of writing, dogecoin is worth AU$0.55. Year-to-date, the coin has risen by 9549.12%. While that is a crazy amount, it is worth bearing in mind that the coin is extremely volatile and past performance is not an indication of future performance.

How can you buy Dogecoin in Australia?

If you are interested in investing in Dogecoin, there are a number of cryptocurrency exchanges that buy, sell and trade it.

Australian Cryptocurrency Exchanges June 2021

The table below displays some of our referral partners’ Cryptocurrency Exchanges.
This information does not reflect any ranking, rating, recommendation or endorsement by Canstar of cryptocurrency or any specific provider. Canstar is providing factual information supplied by providers. Not all providers or products are shown. Canstar will earn a fee from the providers displayed in the table, and the fee levels determine placement in the table. Cryptocurrencies are speculative, complex and can involve significant risks. Canstar is not providing a recommendation for your individual circumstances.

Provider Fiat currencies  AUSTRAC Bitcoin Other currencies  Year Established

go-to-site AUD Yes Yes 258+ 2017

go-to-site AUD, USD, GBP Yes Yes 18 2007

go-to-site AUD Yes Yes 250+ 2013

go-to-site AUD Yes Yes 140+ 2013

go-to-site AUD, NZD, USD Yes Yes 24 2013

go-to-site AUD, GBP Yes Yes 24 2013

go-to-site AUD Yes Yes 100+ 2018
Binance Australia AUD Yes Yes 210+ 2020
Bitcoin Australia AUD Yes Yes 2 2014
BitTrade AUD Yes Yes 6 2013
BTC Markets AUD Yes Yes 18 2013
Buy A Bitcoin  AUD Yes Yes 2 2014
CoinLoft  AUD Yes Yes 6 2013
e-Pocket AUD, USD, GBP (+6) Yes Yes 6 2017
HardBlock AUD Yes Yes 1 2014
Luno AUD, EUR, GBP (+7)  Yes Yes 5 2013
RelayPay AUD, USD, EUR (+15)  Yes Yes 18 2019
Swyftx AUD Yes Yes 257+ 2017

Cover image source: Jiri Hera (Shutterstock.com)


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Marissa is the Content Producer for the Wealth team at Canstar, and specialises in investment content. Her previous experience has seen her create content for wide range of industries from travel to the legal sector. Follow Marissa on LinkedIn, and Canstar Investor Hub on Facebook.

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