The DogeCoin madness started in December, 2013, when the cryptocurrency was released. Everyone thought it will be the next big thing, the new Bitcoin. Unfortunately, it couldn’t live up to the expectations of crypto fans around the world. In spite of people’s enthusiasm, the Portland script-based cryptocurrency was poorly crafted from the very beginning.
You need to check the truth behind the services of Coin Mining Direct on the trading exchange. The meeting of the expectations is possible for the traders. You should trade in the coins and currencies to get the best experience. Learning about the reality is essential for the beginners.
- Disproportionate DOGE ownership
When DogeCoin was released many people wondered – Is DogeCoin a joke? Believe it or not, many thought it was. It came out with an extremely low hash rate, which instantly meant that DOGE ownership was going to be disproportional with early miners (diggers). The coin’s silly nature persuaded the developers to delegate and fix things while the DOGE was still hot.
- Poorly developed
Can you believe that 14 days after its release, DogeCoin already had version 1.2 along with 33 mixed comments onGithub? And there weren’t exactly positive comments. Many people couldn’t understand the developer’s mistakes, considering DOGE was just another Litecoin clone. How could a developer make so many mistakes if the initial coin was a clone?
- Difficult scaling system
DogeCoin is the perfect candidate for multipool overuse, considering that it features a pretty difficult scaling system – 400% up/down. Users should expect a hardfork to arrive pretty soon.
- Dropping value
Many crypto fans were excited to see that the value of the DOGE was so high in the beginning. The hype train helped the value of DOGE grow at a much higher degree, which meant it most likely spiked at 50% more value than it should have had at that time. The DOGE value is now dropping and we won’t be seeing any significant increases any time soon.
- Falling hash rate
Some may argue that a great portion of the transactional volume, like tip boots and tip services, are being performed off-chain; therefore, the overall number of transactions is most likely higher. They would be right, however, that would also defeat the mere purpose of a block chain to begin with. The point is this: if things don’t change and the hashrate of the network keeps falling 20-30% after each and every halvingday, in 2-4 months it will be incredibly cheap for rival mining pools on additional ledgers to perform a 51% hit on the DOGE’s network, thus destroying its utility and credibility.
- Susceptibility to hacking
Nice work hackers, it only took you a couple of weeks to hack the DOGE. So after being released at the beginning of December, DogeCoin was hacked on Christmas. Dogewallet users lost about 21 million coins. The incident was officially confirmed in a Reddit post, after many users complained that DogeCoins are disappearing from their wallets. Dogewallet did promise to refund all the coins and the website was temporarily shut down. Dogewallet closed its Facebook page and created a new Reddit account to answer complaints, which made people really angry.
DogeCoin couldn’t handle the pressure. They thought a clean start (new Facebook page, new Reddit account) would fix things. Things didn’t work as planned, and users kept criticizing the incompetence of the platform to keep its data secure
- Security vulnerabilities
Fool me once, shame on you, fool me twice, shame on me! In the first quarter of 2014, DogeCoin experienced another security vulnerability. There was another hacking attempt that allowed hackers to set up the most lucrative illegal cryptocurrency mining operation to date. Mining DogeCoin is simpler than Bitcoin (which demands purpose-built ASICs for mining) and this fact alone makes the coin extremely popular for botnet mining operations. The attack happened over a NAS mining network and it was an illegally-acquired mining operation – “the single most profitable to date”. The operator won in 2 months an estimated $600,000.
- Absence of a hard coin cap
DogeCoin’s code shows clearly that there’s no hard coin cap ready. While Bitcoin is finite, DogeCoin isn’t. We all thought the hard supply cap was 100,000,000,000 and we were wrong. Apparently, there’s no code in place to prove that DogeCoin has more than 1 billion coins in circulation. This can only mean DogeCoin could have 500 or perhaps 1 million billion coins 10 years from now. Knowing these facts could have severe consequences, and many people are wondering whether or not it will lead to the devaluation of the DogeCoin.
- Coding issues
Wake up DogeCoin, it’s almost the end of 2014 and you’re still having security issues, coding issues and bugs. The community got a lot of support, but of course there were many haters who kept attacking the network. It’s obvious that there’s some truth to all their complaints.
- Unreliable Digital Wallet
Users needs dependable digital wallets to store their coins. That’s not going to happen with DogeCoin. The platform is just incapable of storing earned credits properly. Apparently, using a Digital Wallet to store your coins can be extremely risky. Attackers can break into the system and steal everything; users are advised to use an offline wallet instead. This method is better known as “cold storage” that allows them to keep their coins completely secured.
Introduced on December 8, 2013, DogeCoin seemed promising at launch. Unfortunately, its growth rate was too fast, so the coin’s value is now dropping. There have been many issues with the development process of the DOGE; two weeks after it was released, it already had version 1.2. Some mistakes were considered ridiculous, and that drew the attention of hackers. At the end of December 2013, the platform experienced a heist valued at 21 million coins (roughly $18,000), so that should make cryptocurrency fans decide once and for all if DogeCoin is a sound investment or not.