Hello, friends!
You already know about the rupee coin and Bitcoin
But there's a new coin that's globally famous now.
It's called the Dogecoin.
The value of our rupee is based on our currency.
And Bitcoin is based on Blockchain
that promises to revolutionize the monetary systems around the world.
But this Dogecoin
is based on a meme.
Literally!
This coin was made in jest.
Someone took the Doge meme,
this meme of the dog was quite famous
at some point
and made a coin out of it.
It's like someone taking the
"Pawri ho rahi hai" meme
and turning it into a "Pawri coin".
Or this meme of Akshay Kumar
being made into "Akki coin".
It's quite possible.
Someone may very well make these Pawri coin and Akki coin.
Because cryptocurrency is so decentralised that
any person can develop their own coin.
They'd need basic coding knowledge to do that.
But the thing is that
this Dogecoin became so famous that
people like Elon Musk started buying it and promoting it.
Why did it happen?
Come let's find out in today's video on Dogecoin.
After the popularity of Bitcoin, several people brought up its disadvantages.
Like, the long transaction time of Bitcoin.
Or that the whole process of Bitcoin
consumes a lot of energy.
And that's not good for the environment.
That's why some people considered making their own coins.
These coins are known as Alt-Coins.
i.e. Alternative Coins.
Because they're the alternative to Bitcoin.
And they try to counter the disadvantages of Bitcoin.
By some method or the other.
Like Ethereum, Litecoin,
I talked about them in the Alt-Coins video.
You can watch them as well.
The link will be in the description below.
But after Alt-Coins had been developed,
people realized that
anyone can create their own coins.
So some people started creating
their own coins for fun.
There were no advantages in their coins
as compared to Bitcoins.
They simply changed the name
and created a new coin.
Some scammers made their own coins as well.
And fooled people to invest in their coins
to drive the value of the coin
After which the scammer would
take back his investment
and the people will suffer heavy losses
while the scammer would walk away with a significant profit.
This is known as a Pump and Dump scheme.
So many people created their coins for fun.
Some for scamming people
others for absolutely no reason.
It was only meant as a joke.
These coins which were created for no reason
they are often known as Shitcoins.
Because they do not add any value to the world.
They aren't bringing about any
improvement in the process.
So they're Shitcoins.
Some people believe that Dogecoin
is also a Shitcoin.
The only difference is that the purpose of creating Dogecoin wasn't to scam people
it was only to prank people.
It was only a joke.
This Doge meme was at the peak
of its popularity in 2013.
Jackson Palmer, an Australian marketer and
Billy Markus, a software developer at IBM
developed this Dogecoin then.
Palmer says that he
thought up this idea as a joke.
to combine the two most popular
trending topics on the internet.
Cryptocurrency and the Doge meme.
The code of Dogecoin is based on Litecoin.
Litecoin is an Alt-Coin that does have a few advantages over Bitcoin.
Like lesser processing time and
lower transaction fees.
But it is truly surprising that
the market valuation of Dogecoin has already surpassed that of Litecoin.
If you look at the
largest cryptocurrencies of the world
Dogecoin coin has become the fourth-largest cryptocurrency.
After Bitcoin, Ethereum and Binance.
The biggest question here is
how is it possible?
How did a coin made as a joke gain such popularity?
Why are people buying it?
The first reason is the Reddit website.
People on Reddit started using it as a joke initially.
Whenever someone liked a post or comment on Reddit,
people would award some Dogecoins to the OP as a tip.
It was known as the DogeBot tip.
Usually, this was a tip of 5 Dogecoins.
And at the time the value of Dogecoin was 0.0002¢.
It was a very small amount.
But using Dogecoin as a tip started gaining popularity on Reddit.
And this expanded over the years.
Dogecoins were used so much and
exchanged so many times that
their value started increasing rapidly.
In September 2018, the CEO of Tesla, Elon Musk
noticed it.
Elon Musk met Jackson Palmer on the issue of Twitter scambots.
The fake Twitter accounts that scam people using the guise of cryptocurrency.
Elon Musk wanted to take them down
because his name was being used
to run these scams.
So he asked for Jackson Palmer's help on this.
That was when Elon Musk came to know about Dogecoin.
After 7 months he tweeted "Dogecoin might be my fav(ourite) cryptocurrency."
In March 2020 he tweeted
"Dogs rock. They are the best coins."
So in the coming months and years
he tweeted about Dogecoin several times
which were indirectly or directly promoting Dogecoin.
And because Elon Musk is so famous,
perhaps the most renowned and liked billionaire in the world,
every time he tweeted, it sent up the value of Dogecoin by 25% - 50%.
Eventually, 2021 followed 2020.
And now the value of Dogecoin has exceeded 50¢.
At its peak, Dogecoin had almost touched the valuation of $80 billion.
Though its price has fallen a bit in the last couple of days,
but the supporters of Dogecoin aim to drive its value up to $1.
It means that the value of 1 Dogecoin would be equal to $1.
Currently, it is around 50-60¢.
And what is the process to buy Dogecoin?
It's the same as buying any other cryptocurrency.
You'd need to use a Cryptocurrency Exchange Platform.
Talking about the real-life use of Dogecoin,
the community of Dogecoin have donated to several charitable causes.
Their first donation was to a
Jamaican Bobsleigh team
of $30,000 in Dogecoins
so that the team could participate in the
2014 Russian Winter Olympics.
After this, for some water conversation projects in Kenya
and for helping some special needs children,
the community of Dogecoin donated money.
And who are the community of Dogecoin?
What do I mean by this?
Basically, there is a subreddit on Dogecoin where
the users who buy and promote Dogecoins
come together
and make such donations.
But overall, friends, I'd say that Dogecoin has become a cultural trend now.
It does not have a value of its own.
It isn't bringing in any significant technological advancement
neither is it unique.
Only because of its circumstances Dogecoin has become so popular now.
And this is needed to be understood by those people that think that
if they invest in Dogecoin now and they would get 10x, 100x, 1000x returns.
That Dogecoin is a good investment.
You need to understand the cultural trends grow exponentially.
And die down after their peak.
There is a very high possibility that this may happen.
I'm not giving you any investment advice here.
You can buy Dogecoin if you want to.
I'm just saying that be cautious of the huge risk.
But higher the risk in investment, there are more chances of high returns as well.
It is possible that after a few years, Dogecoin may be valued at $100 instead of a paltry $1.
But it is equally possible that its value may become 0 instead of the 0.50¢ now.
All your investment may vanish.
Because predicting cultural trends on the internet is next to impossible.
You'd basically be trying to predict how the world would think collectively.
I believe that the same thing applies
to Bitcoin as well.
You should invest only that much in Bitcoin
that you can afford to lose.
If Bitcoin crashes to 0 tomorrow,
you would not suffer much even after all your investment vanishes.
And Dogecoin is even riskier than Bitcoin.
So this is even more valid for Dogecoin
than it is for Bitcoin.
At least Bitcoin has some value of its own.
Because it presents a revolutionary technology.
It presents an alternative monetary system.
But it is not so with Dogecoin.
But at the same time, also remember this, friends,
that only those things have any value in the society,
in which people believe.
If people think that a thing should have value,
it does.
You can see this with so many things.
If people think that branded clothes have value,
then their value exists and
people buy them at exorbitant prices.
The same thing applies to Dogecoin as well.
If every one of us starts believing that Dogecoin does indeed have a value
even if there really isn't any,
people would want to buy it which would drive up its value.
And what can be the reason behind it?
Absolutely any reason.
If someone claims that Elon Musk's brand is attached to Dogecoin and it has a high value
the same reason as with clothes.
If a cloth is marked by a brand it has a high value.
For the same reason, someone may say that
Dogecoin's value should be higher.
If society starts believing this its value will grow.
And if society doesn't, its value will fall.
I hope that you liked this explanation.
If you liked this video then do share it.
And let's meet in the next video.
Thank you.
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