Dogecoin: Explained

Dogecoin

Dogecoin, dogecoin, dogecoin.. It’s going crazy nowadays. Let’s talk about dogecoin. So, you might have seen this all over Twitter for the past couple of weeks or months. This seemingly random crypto coming out of nowhere coming from a few fractions of a penny all the way up to a few cents on its way to who knows what powered by rocket emojis, Shiba e-news, and Elon musk tweets. Kind of random but in the tech world it’s been kind of fascinating to watch what’s been going on here. This article is not official financial advice I’m not an expert. It’s not the type of thing you should probably get from a writer anyway, but I’m not responsible for anything you may do it decide to do after reading this article.

Dogecoin Graph

So, okay, dogecoin is a cryptocurrency. So, in order to understand basically what’s happening with it, you should understand what cryptocurrencies are and for that I’ll just use bitcoin the most prominent as one as my example here.

Bitcoin

Bitcoin’s been around since 2009. It’s the most prominent largest crypto by market cap but to oversimplify it’s basically a decentralized digital currency. It’s an unregulated highly volatile digital currency built on the blockchain but of course, bitcoin’s not the only one.

Other Cryptos

There are tons of other currencies based on the same thing but like based on alterations of the same rules. So, there are alternate coins called altcoins and there’s a lot of them. The thing is almost anyone can make an altcoin eventually. Like it’s actually fairly impressive how easy it is to make and so there are tons of them, and there’s all build on like different little tweaks , and versions of the same. Fundamentals and pretty much all of’em will claim to be better than bitcoin in some way debatable, but there’s a lot of them out there which is the point and you might hear of some of these so there’s ethereum, litecoin, stellat, ripple, dash, neo. You can literally just open up coin base and sort through tons and tons of them and this is just a small fraction there’s at this point I’m going to say probably thousands of different altcoins to pick from and they’re all basically trying to give you some reason for them to catch on some reason that they’re better than bitcoin to invest in or use. And then there’s dogecoin. dogecoin was literally started as a joke. As a tweet by Jackson palmer while he was walking at Adobe sort of literally making fun of how many altcoins were like imagine there was this shiba inu powered dogecoin and the coin has a little picture of the meme on it. It just kind of hooked on a lot and got attraction from there is like one of those jokes that catches on so much it becomes more than the joke. It like outgrows itself and it becomes a real thing. So he collaborated with Billy Marcus from IBM and they give it a logo, registered it, launched itm built the thing and now it’s real. So, fundamentally we know what dogecoin is. As alternate crypto but I think the reason that it caught back on and stuck around for as long as it has is much more interesting to me see the thing you start to notice about cryptocurrencies is they all take themselves very seriously and they should because they’re they exist in different worlds for the great reason I actually really like the idea of bitcoin. I think having a global currency makes sense in the age of the internet who like in but now that there are so many altcoins. It can feel kind of overwhelming to sort through all and find out which ones are useful, which ones are good, short-term versus long-term investments, which ones you can buy that may actually make you money. What everyone wants to know and everyone kind like stocks everyone wants to find that hidden gem of like young smaller crypto that has just the right combination of things that it’s going to grow and turn into this massively important thing. so that gets people investing in all kinds of small very young crypto that eventually gets you in the murky waters of possible scams and pump and dumps schemes and things that you probably shouldn’t be investing in. So, dogecoin seems like it’s caught on because it started as a joke ad then and now people taking it super seriously but also kind of as a joke. but also kind of for real.

Let me bring up one example to help you to understand the dogecoin business strategy. Someone named Will Rogers who ran for president in 1928 and won on a joke campaign and then eventually resigned. He could have been president but the whole point of his campaign was to show how dumb it was and moke the whole process. So that was like the dogecoin of politicians but I also have an example of the equal but opposite situation. Sometimes a group of people may be a founder, starts approaching a social media influencers to promote crypto. So, people aware of it and it catches more attention to boose the volume and to boost prices. A strategy like that comes off as so insincere and so try hard that like just look at the comments everybody people are already turned off by it. Actually people kind of hate it and so dogecoin. On the other hand, is being boosed literally by people meaning online and the owners because think they realize that it never been meant to be taken that seriously have just been using that press and using money they get form it from for honestly, the best causes possible they’ve used the press to their advantage. The point is it felt like the crypto for the people like the more accessible less intimidating version for the people the smaller price made it ideal for things like micro tipping on social media websites like Reddit would let you just tip in dogecoin, if you wanted to and then later, Elon musk seems to be really enjoying it.

I mean he’s always been specifically into like memeing on Twitter for a long time, but obviously, he’s all in like if you look at his Twitter over the past month or two. it’s just been all dogecoin. and then if you watch the price and volume of dogecoin go up the more he tweets about it and it’ll sort of simmer down and die off after a while and then he’s tweet about it again and it’ll kick up I bet if you drew a volume graph of how many times people read and talk about it. It would be your right lock step in line with elon’s tweet.

That’s just the way it is. In this world of unregulated decentralized cryptocurrencies that’s fair game. So at least now we understand the means of dogecoin going all the way up to a dollar I think it’s a five and a half cents right now something like that too. Do you think it’ll ever get up to a dollar? probably not but again this isn’t financial advice. but anyway in summary,

Conclusion

Dogecoin has caught on as an altcoin but also as a meme not just because people seem to be really against wall street against that’s the whole big financial institution that’s kind of had its forever but also because of the meme. and like the doge himself. I feel like this meme has a longer shelf life than most it feels like the currency of internet attention. now as fat as if you should invest or not? This article is not for financial advice. I’m not responsible for anything you do or think about doing after reading what I mentioned. but what I think is actually fun harmless cryptocurrency to at least get started with and begin to mess around with understanding the inner working of how it works how the treading works, what apps you like to use things like that. I wouldn’t invest any money that you’re uncomfortable with turning to zero dollars. because it could. but I think once you’re done messing with that you can take that learning and apply it to other future investments because it’s always a good idea to have a diverse set of investments that’s financial 101. but in the means time, it feels good to be on the joke now. Feel good to understand it. people are going to ride this either to the moon or till it dies. because that’s what the internet does with every joke.

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Kuldeep Patel

Kuldeep Patel

Information seeker.

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