As Elon Musk’s favorite meme coin, Dogecoin was once considered one of the most popular cryptocurrencies in the world. Below are some of Elon Musk’s direct quotes about Dogecoin on social media:
- “Dogecoin is the people’s crypto.” — Feb 4, 2021
- “Bought some Dogecoin for lil X, so he can be a toddler holder.” — Feb 10, 2021
- “SpaceX is going to put a literal Dogecoin on the literal moon.” — Apr 1, 2021
- “Tesla will make some merch buyable with Doge & see how it goes.” — Dec 14, 2021
- “I will keep supporting Dogecoin.” — Jun 19, 2022
Who would have thought that a cryptocurrency originally created as a satire of Bitcoin’s hype would go on to capture global attention and grow into a $24 billion project? If you’re trading or mining Dogecoin today, congratulations—you’re playing a part in shaping a billion-dollar ecosystem!
Trading: What is the cost of acquiring 1 DOGE?
Dogecoin has an unlimited supply, which sets it apart from Bitcoin and Litecoin. The Dogecoin community encourages people to use DOGE rather than just hold it. DOGE is issued through Proof of Work (PoW), where miners generate new DOGE by mining. Miners validate and record transactions through extensive computations, and in return, they receive newly created DOGE. In fact, 14.4 million new DOGE are added daily, totaling 5.256 billion DOGE issued annually as mining rewards.
Currently, the total circulating supply of DOGE has reached 148.39 billion. As of the time of writing, the price of one DOGE is $0.1713. This means that if an investor wants to buy one DOGE on any exchange, such as Binance, OKX, or CoinEx, they would need to pay $0.1713. Despite DOGE being a multi-billion-dollar project, its price per unit remains affordable for most people. Compared to Bitcoin and Ethereum, which often cost thousands of dollars per unit, DOGE is significantly more accessible.
Mining: A Must-Learn Lesson for Dogecoin Miners
For those who prefer long-term investments, mining is a favored way to acquire DOGE. However, unlike trading, calculating mining costs involves numerous parameters, making it a more complex process. This article will focus on DOGE mining, providing miners with in-depth knowledge about the mining process.
How to Prepare for DOGE Mining?
1.Choosing Mining machine (Essential)
DOGE uses the Scrypt mining algorithm, the same as Litecoin, and can be mined using either ASIC miners or GPUs.
- ASIC Miners: The best choice for DOGE mining due to their high hashrate and energy efficiency. However, they require a significant initial investment. Common ASIC miners that support the Scrypt algorithm include Antminer L9, ElphaPex DG1, and VolcMiner D1.
- GPU (e.g., NVIDIA or AMD): Suitable for personal or small-scale mining but has lower computing power and is less competitive than ASIC miners.
2. Choosing a Mining Method (Essential)
- Pool Mining: Contributing hashrate to a mining pool and mining alongside other miners for more stable earnings. This method is ideal for miners with lower hashrate. One of the best options is ViaBTC, currently the world’s No. 1 Scrypt-based mining pool. With merged mining, miners using ViaBTC can also earn additional rewards in LTC, BELLS, LKY, PEP, JKC, and DINGO—seven coins in total.
- Solo Mining: Mining independently without relying on a pool. This requires an extremely high hashrate; otherwise, it is difficult to obtain block rewards. Solo mining is suitable for miners with large-scale mining operations.
3. Choosing a DOGE Wallet
- Official Wallet: Dogecoin Core 1.14.9
- Hardware Wallet: Ledger Nano X, Trezor Model T, etc.
- Exchange Wallet: Binance, OKX, CoinEx, etc.
- Mining Pool Wallet: ViaBTC provides a multi-coin wallet service. Registered miners automatically receive a dedicated wallet and do not need to create a separate DOGE wallet address. This allows DOGE mining rewards to be directly credited, making the process more convenient.
4. Selecting the Right Environment (Essential)
- Network Connection: Ensure a secure, low-latency network. An unstable network or high latency can result in delayed or failed transmission of mining results, affecting miner revenue.
- Electricity Costs: Besides hardware expenses, electricity is the other major cost in mining. Since electricity rates vary by region, choosing a location with lower electricity costs can effectively reduce expenses and increase overall profitability.
- Cooling System: Mining machines generate substantial heat during prolonged operation. Proper ventilation and cooling solutions, such as additional fans or water/oil cooling systems, help prevent overheating, ensuring stable hashrate and prolonging the lifespan of mining equipment.
Mining: What is the cost of mining 1 DOGE?
Each miner uses different mining machines, and even the same model may have varying costs due to purchase timing, source, and other factors. As a result, it’s difficult to establish a fixed standard price for mining machines. However, for the sake of comprehensiveness, this article will provide market reference prices for mainstream mining machines to help miners evaluate the cost of obtaining one DOGE. The calculations assume a DOGE price of $0.1713, an electricity cost of $0.05 per kWh, and a fixed mining difficulty.
Official Price: $14,560 (approximately 84,997 DOGE)
Hashrate: 16 GH/s
Energy Efficiency: 210 J/G
Assuming DOGE price, electricity cost, and network difficulty remain constant:
Estimated DOGE earnings in Year 1: $5,802.27 (≈ 33,872 DOGE)
Electricity expenses in Year 1: $1,471 (≈ 8,587 DOGE)
Cost per DOGE in Year 1 = ($14,560 + $1,471) ÷ 33,872 DOGE = $0.47
Cost per DOGE in Year 2 = ($14,560 + $2,942) ÷ 67,744 DOGE = $0.258
Cost per DOGE in Year 3 = ($14,560 + $4,413) ÷ 101,616 DOGE = $0.187
Official Price: $9,300 (approximately 54,291 DOGE)
Hashrate: 11 GH/s
Energy Efficiency: 311 J/G
Assuming DOGE price, electricity cost, and network difficulty remain constant:
Estimated DOGE earnings in Year 1: $3,898 (≈ 22,757 DOGE)
Electricity expenses in Year 1: $1,497 (≈ 8,736 DOGE)
Cost per DOGE in Year 1 = ($9,300 + $1,497) ÷ 22,757 DOGE = $0.475
Cost per DOGE in Year 2 = ($9,300 + $2,994) ÷ 45,514 DOGE = $0.27
Cost per DOGE in Year 3 = ($9,300 + $4,491) ÷ 68,271 DOGE = $0.202
Official Price: $13,875 (approximately 80,998 DOGE)
Hashrate: 18.5 GH/s
Energy Efficiency: 229 J/G
Assuming DOGE price, electricity cost, and network difficulty remain constant:
Estimated DOGE earnings in Year 1: $6,556 (≈ 38,273 DOGE)
Electricity expenses in Year 1: $1,861.5 (≈ 10,867 DOGE)
Cost per DOGE in Year 1 = ($13,875 + $1,861.5) ÷ 38,273 DOGE = $0.411
Cost per DOGE in Year 2 = ($13,875 + $3,723) ÷ 76,546 DOGE = $0.23
Cost per DOGE in Year 3 = ($13,875 + $5,584.5) ÷ 114,819 DOGE = $0.169
It’s important to note that these calculations do not factor in additional earnings from merged mining. Since DOGE can be mined alongside LTC, BELLS, and other cryptocurrencies, the actual mining cost per DOGE is lower. Before starting mining, be sure to check whether your selected mining pool supports merged mining with LTC and DOGE to maximize returns.
Disclaimer: This is a paid post and should not be treated as news/advice.
