Dogecoin, Elon Musk’s favorite crypto, is supported by the Litecoin network thanks to “merged mining,” an agreement proposed by Charlie Lee to provide security from his blockchain.
Summary
Dogecoin: Elon Musk’s favorite crypto is supported by Litecoin with merged mining
Dogecoin (DOGE), the memecoin that became famous thanks in part to the interest of the CEO of Tesla, Elon Musk, is backed by the Litecoin network with merged mining.
This is why one of the most historic crypto assets should not be underestimated, given its importance in supporting even those that have become more popular.
It was actually 2014 when the Dogecoin blockchain was at risk of attack, as it was about to run out of block rewards, given the frenetic pace of the coin’s issuance. So, Charlie Lee, CEO of Litecoin, wanted to propose the merged mining deal, which allowed Dogecoin to borrow the security of LTC’s network.
Within a month, Dogecoin’s hashrate/mining difficulty increased by +1500% due to the expanded operations of large mining pools.
Since then, the hashrate of Dogecoin has shown an extremely strong and positive correlation (0.95) with the hashrate of Litecoin. As of July 2019, nearly 90% of Dogecoin’s total hashrate came from large Litecoin mining pools, and its blockchain was processing about 30,000 transactions per day.
Dogecoin and Litecoin: the two crypto assets compared
Although Litecoin is the more historic crypto, born in 2011 and soon becoming the digital silver, its market cap is lower than that of Dogecoin, which was born as a joke in 2013.
And indeed, at the time of writing, LTC is in 11th position in the overall crypto rankings, with a total market capitalization of more than $6 billion. Dogecoin, on the other hand, is in eighth position, with a total market cap of over $10 billion.
As for the current prices of the two crypto assets, LTC is worth $86.23 down 5.5% in the last week, while DOGE $0.073, down 7% in the last seven days.
In any case, while Litecoin has seen its success in wanting to be the second blockchain to Bitcoin, Dogecoin has had famous supporters of the caliber of Elon Musk.
Not only that, during yesterday’s day, Litecoin experienced its halving:
The news of the implementation of BTC and DOGE on X
For the past few days, news seems to have been circulating that Elon Musk’s new X (Twitter), may also implement the buying and selling of crypto assets such as Bitcoin or Dogecoin.Â
Indeed, this rumor has not yet been confirmed. But as is well known, anything is possible with Musk. And indeed, his intentions with his new X, is not only to rebrand Twitter, but to expand his social networking service into much more.
Among other things, there would in fact be the intention to create a single interface for all its users even in the financial world, which, given its involvement in the crypto world, will not be able to fail to integrate them. Not only that, according to a study by CryptoBetting.com, DOGE is also among the most popular crypto assets in America, along with Bitcoin and Shiba Inu. The report is based on research volume data to analyze and compare different assets across the top 100 cryptocurrencies by market cap.
