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You can transfer money from your bank account to a virtual wallet full of Doges. Dogecoin also has its own virtual wallet. Trading them back for dollars, however, is more difficult, Doernberg says, though there are markets such as Moolah that allow it. A problem with cryptocurrencies is that because they're so new, they often gain value fast and can become significantly more expensive to buy from week to week, says John Arsenault, a Denver lawyer who represents a VPN company that accepts cryptocurrencies.
Wide swings in value don't happen as much with currencies backed by governments. Such price changes can make cryptocurrencies more popular with speculators, Arsenault says. And here's another fun twist to using virtual currency: The IRS recently ruled that such payments are considered property and should be reported as income, making them subject under some circumstances to the capital gains tax.
If you're making money as the market for a virtual currency rises, you'll have to give some of it to Uncle Sam. And no, the federal government won't accept Dogecoins as payment for a tax bill. Repeated plagiarized posts are considered spam. Spam is discouraged by the community, and may result in action from the cheetah bot.
If you are posting content under a Creative Commons license, please attribute and link according to the specific license. If you are posting content under CC0 or Public Domain please consider noting that at the end of your post. I am a robot. We do mean fun; based on everything we can find on its creator, it wasn't intended to be considered a serious cryptocurrency like Bitcoin or Ethereum.
It was intended to be a bit of fun. When the value of Dogecoin increased in December , mining pools inevitably jumped in to take advantage and earn some money, which led to a massive drop in value as so many of them were now being produced. This was a sad time for many people as Dogecoin was never intended to be a serious cryptocurrency but now it was becoming more well-known and this couldn't be avoided.
This was followed by a group of enthusiasts gathering donations which eventually covered all losses which we think is a great insight into what the Dogecoin community is all about: Leading on from the previous section, the Dogecoin community is pretty great! If you ever look at the subreddits forums for popular cryptocurrencies, the majority of posts seem to be increasingly about how much it's worth - and how much it'll be worth in the future.
But what we love about Dogecoin is that for the most part, its community just don't care! But rather than numerous answers speculating over what might happen, there were answers like '1 doge' and '2.
People having a bit of fun, and not really caring about how much it'll be worth in a year. From what we're seeing, the primary use of Dogecoin is for things like tipping users on forums if they post something interesting. Exactly the sort of use-case we think cryptocurrency is ideal for. Well if you're an investor, go ahead - buy some. Not loads, just a bit. Dogecoin as of writing this doesn't have a limited supply like Bitcoin; millions more are being created every year.
So the Australian wanted to show the absurdity of huge investments in unstable assets during the cryptocurrency boom. The founder of DOGE believed that dogikoyn would become an educational platform for beginners - a crypto currency for the people. In addition, the coin cost much less than its "daddy" lightcoin and was excellent for micropayments and donations. A big role in its popularity was played by social networks and support of the Reddit community. Among the advantages of dogicoin is the operational generation of the block once a minute, that is, the rapid confirmation of transactions.
DOGE still remains popular and in December soared along with the rest of the crypto currency, despite the fact that its development actually stopped in , when Palmer left his project.
Now the Dogecoin is supported by the community, but there have been no major innovations for more than two years.