Dogecoin is an intriguing story on its own. It was created as a meme coin with no serious intention, back in 2013.
Both the name and the renowned Shiba Inu logo are based on the meme. Dogecoin differs from Bitcoin in the fact that it is infinite in number – 10,000 coins are mined every minute and more than 5 billion coins every year.
For most of its existence, Dogecoin was not very well known. However, from April 2021 it underwent a rally that made it among the top ten biggest cryptocurrencies by trading volume.
Although each Dogecoin is just worth pennies, the overall value topped $50 billion?
Dogecoin Mining – The Process
Dogecoin is an altcoin and the mining process is similar to Litecoin and Bitcoin for that matter. It uses a ‘Proof-of-Work’ algorithm where miners compete to verify transactions that are stacked one over the others in blocks.
For every block that is verified successfully, the reward is 10,000 DOGE.
Overall, it is considered mining Dogecoin as a lottery because one node at a time will win a good enough reward.
But note that the reward depends on the mining efforts you put in, which in turn depends on the computer you are using for mining and any sophisticated mining machinery you use on top of it.
Here are some Dogecoin mining parameters you should know:
The algorithm that Dogecoin mining uses is the SHA-256 algorithm and as mentioned above, it uses the proof-of-work algorithm.
Although there are better algorithms in place, this one is still relevant for the coins that have been around for a longer time.
Due to the high frequency of Dogecoin, the mining effort required is dramatically less compared to the case of Bitcoin.
To put in perspective, the Bitcoin difficulty hash rate is – 7182852313938.32 and the Dogecoin difficulty hash rate is – 2881328.6684.
How Long Does It Take To Mine 1 Dogecoin?
As Writing of this article, it would take 0.002 days to mine 1 Dogecoin at the current Dogecoin difficulty level along with the mining hash rate and block reward; a Dogecoin mining hash rate of 9,500.00 MH/s consuming 3,425.00 watts of power at $0.10 per kWh, and a block reward of 10000 DOGE.
The block reward is itself 10,000 DOGE, it is impossible to mine just 1 DOGE. But to put into perspective, you will need to contribute just 0.01% of the total hash rate of the block, to mine 1 DOGE.
Although the reward is very less compared to the value Bitcoin gives for cracking the code, the miner can earn a cool $2500 with one block of Dogecoin.
Dogecoin Mining Approaches
Dogecoin can typically be mined by three approaches – solo, through Dogecoin mining pools, or cloud mining.
If you do solo mining, you can keep the entire block rewards to yourself, however, you will need a computer with high computing power.
Since the competition in the Dogecoin space is higher, you will need to deploy multiple mining machines at once.
The easier option is to join a Dogecoin mining pool where a group of miners combines their computing powers to effectively mine DOGE.
The rewards are shared with each member proportional to the computing power they have contributed. If you participate in a mining pool, you will face less burden of power and energy consumption too.
Some good Dogecoin mining pools to consider are – AntPool, Prohashing, ViaBTC.
The last way you can mine Dogecoin is through cloud mining. Here you subscribe to a cloud mining program where you pay money for them to use their computing power to mine Dogecoin.
You will not need to equip any machinery or software from your end for this. Some good Dogecoin cloud mining platforms are – Genesis Mining, Nicehash, and Eobot.
Also Read: Why Dogecoin Has No Cap?
Steps To Mine Dogecoin
Before you can get to mining Dogecoin, there are a few things you need in place – hardware, software, and wallet.
For the hardware, you can start with a system with any operating system – Windows, iOS or Linux.
If you are doing small-scale mining, basic machines work the best but for more advanced capabilities you will need to get ASICs and GPUs.
For the software, depending on the hardware that you use – it will vary.
If you are mining by CPU, then you can use cpuminer, if you are mining by GPU, then you can use EasyMiner and if you are mining by ASIC, then you can use CGMiner.
Lastly, you will need a trusted Dogecoin wallet where the money will go that you get from mining.
You can choose the common wallets such as Binance, Trust Wallet, or Coinbase. Make sure that they are eligible to have Dogecoin before you provide its address for the mining rewards to be sent.
How Many Dogecoins Are Mined Per Day?
According to reports, 14 million DOGE coins are mined and added to the network every single day. This number is comparatively higher than other popular cryptocurrencies like Bitcoin, Ethereum, etc.
This rapid production of new coins is mainly due to the hashing algorithm. Dogecoin is a Scrypt Coin that is easier to crack by mining equipment compared to Bitcoin.
The circulating supply of Dogecoin is nearly 140 billion. In fact, the total number of Dogecoins that will exist is infinite – there is no upper limit.
At the current rate of mining, 5 billion Dogecoins are added every year.
Also, Dogecoin does not have a halving mechanism like Bitcoin. The reward for solving a block will always be 10000 Doge, therefore, there is no scope for the number of coins in circulation to even reduce in the pace of addition.
Also Read: Why is Dogecoin So Cheap?
So, these are everything you need to know about Dogecoin mining and how frequently it is mined.
The huge amount of Dogecoin mining makes more coins come out to the network each day, reducing its value even further.
Do study the risks involved before investing money and effort in Dogecoin and other cryptocurrencies!