Dogecoin (DOGE) is a peer-to-peer, open-source meme coin that was created in 2013 by Jackson Palmer and Billy Markus to pay a satirical homage to bitcoins. It borrows the name from an internet meme bearing the image of the Shiba Inu dog (a Japanese breed) and hence the name Dogecoin, which is often pronounced as doge. It features the underlying technology of Litecoin and uses a script algorithm besides having unlimited supply.
The cryptocurrency was more popularly used for charitable purposes and online tipping. Social media platform users use Dogecoin to give tips to each other for good internet content. $50,000 worth of Dogecoin was donated to the Jamaican Bobsled Team to help them participate in the Olympics in 2014. Dogecoin was also used to build wells in Kenya.
Though the cryptocurrency was created just for laughs and served no purpose, it is no longer a joke, and all the credit goes to the Tesla King Elon Musk. He has sent Dogecoin soaring high with his handful of cheeky tweets. Dogecoin is now worth more than Under Armour (a leading sports equipment company) or Western Union (a US financial services company). The stock price has ridden the same as stocks of GameStop and AMC over the past few days, which spiked its value up by 696% so far.
Despite all the speculations about dogecoin being too good to be true and thus it might be a bubble, people are still curious about investing in Dogecoin. But how are the profits calculated? For this, you need a Dogecoin profit calculator- how it works is discussed in the latter part of this article.
Dogecoin (DOGE) Profit Calculator
A Dogecoin profit calculator or simply a Dogecoin ROI (return on investment) calculator is a tool to calculate how much profit an investor would have made if he had invested in the coin in the past.
How does Dogecoin Profit Calculator Works?
A dogecoin profit calculator calculates the return on investment using a simple mathematical equation. First of all, it fetches the historical price of Dogecoin from the database and compares that with the current Dogecoin Price, and then calculates the profit/loss made on it.
The tool first calculates the amount Dogecoin that an investor would have got by investing x$’s on any particular day in the past that is obtained by $x/price of Dogecoin. It calculates the current price of that amount in USD, which is obtained by multiplying the current Dogecoin price with Dogecoin’s amount in the past. Finally, the ROI (return on investment) is calculated by dividing the amount in USD today by the amount already invested to date and then multiplying the result by 100.
Besides calculating ROI, investors can also check the future price of Dogecoin by using the Dogecoin price prediction tool that uses tested algorithms on the historical price of Dogecoin to make the price predictions.
How to use the Dogecoin mining calculator?
Like all other cryptocurrencies, Dogecoin transactions also, before they are added to the blockchain network, are first verified by miners. This verification requires a lot of electricity and computing power that makes mining quite expensive. For this, the miners are rewarded with new Dogecoin to incentivize them to check and confirm transactions before adding them to the Dogecoin blockchain. Calculating the Dogecoin mining profit is very simple.
For this, you need the Dogecoin mining profit calculator that asks you two important questions- the first one is how quickly can your system generate the cryptocurrency. The second is how much electricity it uses to do that. Based on the system’s answers, the calculator gives you the answer based on the existing market values.
For this, you need to keep aside certain information like hash rate and power use. Hash rate is the number of hashes a system can crunch per second. The more the hash rate your system can crunch, the more will be the profits generated. Next is to set the electricity cost that you can easily get from the recent electricity bill.
You can also log in to your electricity provider’s website to get the recent electricity bill. Or else you can also physically measure the electricity used up in the process of mining by using an electricity usage meter. You can also measure from the “inside” using any software utility tool. After you fill in all the relevant information, regarding the power usage and the hash rate now you can proceed to calculate the mining profit. Click on the “calculate mining profit” button to get the final profit.
Dogecoin mining calculator works on the simple mathematical principle by applying the Dogecoin Mining algorithm over the various data related to the mining hardware setup, like hash rate, power use, and electricity cost, and then calculating the amount of Dogecoin generated.
Dogecoin mining is easier when compared to leading cryptocurrencies like bitcoin and Litecoin. With the help of the Dogecoin Mining Calculator, it is even easier to calculate the mining profit. However, as blockchain technology is continuously upgrading, the Dogecoin complexity always increases or decreases over time, depending on the total computing power. Currently, mining blocks and hash rates are generated. Therefore, it is very important to check your mining profitability frequently.