You've successfully subscribed to Alpaca Learn | Developer-First API for Crypto and Stocks
Great! Next, complete checkout for full access to Alpaca Learn | Developer-First API for Crypto and Stocks
Welcome back! You've successfully signed in.
Success! Your account is fully activated, you now have access to all content.
Success! Your billing info is updated.
Billing info update failed.

What is Dogecoin?

Matthew Levy
Matthew Levy

Dogecoin is one of the most popular meme coins with Shiba Inu – a Japanese dog breed – as its logo.¹ The coin was created as a “fun” alternative to traditional cryptos like Bitcoin and has similar functionalities as the leading cryptos.²

The evolution of Dogecoin

Dogecoin began as a joke in 2013 and experienced 3100% growth³ in 2021 during the crypto rally. It was especially popular among Reddit users⁴ who used these coins to tip Reddit authors.

Unlike Bitcoin, there’s no cap on the number of Dogecoins that can be mined. The volume of these coins mined is enormous, and the count keeps increasing by the day. Dogecoin offers a fun way to look at blockchain and has caught the attention of celebrities like Elon Musk and Mark Cuban.⁵ Many retail outlets have even accepted cryptos for payment. Due to its low price, Doge remains a highly volatile crypto, making it a speculative investment.

The volume of Dogecoin in circulation may be a significant deterrent for investors as it may limit the appreciation in price. Dogecoin has a different approach to supply, opting for allowing an unlimited amount. This is in contrast to Bitcoin’s cap of 21 million coins to be mined. It is possible that the unlimited supply could be an argument against using Dogecoin as an inflation hedge, whereas some pundits have pegged Bitcoin as exactly that.⁶


Tesla is one of the companies that accept Dogecoin for merch payment. The company offers this facility for a few products, namely belt buckles, and children’s ATVs.⁷ While price volatility may constrain sellers to accept the crypto, one could expect more outlets to receive cryptos once the prices become more stable.


1. Dogecoin

2. Dogecoin (DOGE). Investopedia.

3. Dogecoin (DOGE) Price Prediction 2022. Yahoo! Finance.

4. Reddit frenzy pumps up Dogecoin, a cryptocurrency started as a joke. CNBC.

5. Mark Cuban and Elon Musk Agree on the Merits of Dogecoin. Crypto Experts Have a Different Opinion. Money.

6. Bitcoin as an inflation hedge. JP Morgan.

7. Tesla starts accepting once-joke cryptocurrency Dogecoin. BBC.

Please note that this article is for educational and informational purposes only. The example is for illustrative purposes only.

Cryptocurrency is highly speculative in nature, involves a high degree of risks, such as volatile market price swings, market manipulation, flash crashes, and cybersecurity risks. Cryptocurrency is not regulated or is lightly regulated in most countries. Cryptocurrency trading can lead to large, immediate and permanent loss of financial value. You should have appropriate knowledge and experience before engaging in cryptocurrency trading. For additional information, please click here.

Cryptocurrency services are made available by Alpaca Crypto, a FinCEN registered money services business (NMLS # 2160858), and a wholly-owned subsidiary of AlpacaDB, Inc. Alpaca Crypto is not a member of SIPC or FINRA. Cryptocurrencies are not stocks and your cryptocurrency investments are not protected by either FDIC or SIPC. Depending on your location, cryptocurrency services may be provided by FTX US (NMLS #1957771). Please see the Disclosure Library for more information.

This is not an offer, solicitation of an offer, or advice to buy or sell cryptocurrencies, or open a cryptocurrency account in any jurisdiction where Alpaca Crypto, or FTX US respectively, are not registered or licensed, as applicable.


Matthew Levy

Matthew Levy is a Chartered Financial Analyst (CFA) designation holder, a former portfolio manager for $600+ MM in assets, and started his own business writing financial analysis for clients worldwide