ZoneBitcoin EditorialYou may have seen that the price of Dogecoin had literally exploded in recent days? Please note that this rather unexpected increase is the result of a tweet from Elon Musk. Let's take a closer look.
Right now, as with the GameStop stock affair WallStreeBets, the markets are unpredictable to say the least.
Yes, we are still talking about a crypto which – thanks to Reddit and Elon Musk – saw its price rise more than 600% in 24 hours. Today, the capitalization of cryptocurrency exceeds 9 billion dollars. Even more, it reached 10th place in terms of marketcap.
Social networks went crazy and the crypto, which was barely worth a hundred, exceeded 5 cents last week. Some people on Reddit looking to raise it to $1, as the ultimate goal set by the community. It reached an ATH of $0,085.
We're not there yet, of course, but ultimately, it would be entirely possible if the community grows and plays the game.
Because yes, it is indeed a game in the end. A connivance game between people who agree to buy or sell at the same time. Hence the fact that they manage (by their number) to impact the market according to their desires.
However, Dogecoin is a very particular cryptocurrency...Let's look at the history of its creation to better understand what is happening around the Doge coin.
The History of Dogecoin…🤣
The cryptocurrency was created on December 6, 2013 and from the beginning it was always considered to be a joke.
Its creators Billy Markus, originally from Portland, Oregon and Jackson palmer (an engineer who works for Adobe), admitted to creating it in less than 3 hours. He started glazing on forums like Reddit and 4chan. He took for the logo, the meme that was already relatively popular "Doge" with the Shiba Inu dog.
The goal of Dogecoin was to somehow make fun of cryptocurrencies. We don't really know how to explain the origin of this joke.Because that's a joke in itself. It was then, like a way to be fully ironic and to create a crypto that would not lie about itself at least. Dogecoin would fully assume what it is: an admitted joke.
🤪 The logo itself featured the mouth of the Japanese Shiba Inu dog. This meme, which has become emblematic of the world of cryptocurrencies despite itself, used short sentences written in broken English. It was indeed a joke meant to make people laugh. No other pretensions elsewhere. Always according to the description given by the authors themselves.
(Besides, the Shiba dog breed has also gained popularity, the dog has also sold for two more since the meme appeared)
The first of its kind in the world of cryptocurrencies. No other attempt has had such a response, in any case.
A meme that is growing
The Doge meme therefore consists of adding to a photo of Shiba, texts written in comics without MS which would signify the internal dialogue that the dog would have with itself.
The text essentially repeats expressions like "much", "such", "very", "so". Don't look for meaning in the absolute, eh. It's a meme and often, it's fundamentally and "subtly appropriate".
Just one month after its creation, the enthusiasm was already there, and its capitalization reached 60 million dollars. At that time, it was already enormous, let it be said.
Billy Markus will say that he was even surprised to see that it was the community that took over Dogecoin and built infrastructures around it; dixit " and a community was developing fast, with lots of shady people and lots of new people, quickly putting up services and infrastructure around it.«
At that time, bitcoin and doge were so big that even Nintendo had hidden an item that referenced doge in the game Legend of Zelda. It was even possible to change the font on Youtube to Comic Sans for a while when you typed "doge meme".
A funny and also altruistic cryptocurrency
At one point, during the creation of a new type of wallet for dogecoin, 3 weeks after its creation, there was a big hack. A hack over 21 million doge were stolen during the creation process.
Well, hacks in the crypto field are unfortunately quite common. It's more what happened next, the way this hack was managed that is interesting.
In fact, some members of the community got together and started a specific Dogecoin fund called "Save Dogemas". The flaw was fixed, by the way. This fund allowed the money (the stolen Dogecoins) to be returned to those who had lost them.
We realized at that moment that behind the joke, there was a real community that was rather "generous" and human.
And, with this fund, there were plenty of donations for noble and humanitarian causes: Donations for well construction associations in Kenya (over $50k sent), donations to connect assistance dogs with children, etc. And of course, dogecoin remaining a joke, there were also wacky and funny donations such as sponsoring a Reddit user for the Nascar race.
We can also mention the fact that the Doge community managed to finance the Jamaican Bobsleigh team to participate in the Olympic Games in Sochi. She managed to qualify for the first time since 2002. So it was a way to fully support her.
In short, what we notice at this time is that the community behind dogecoin is powerful and united. Few cryptocurrencies can boast of having such a community, that's a fact.
And, in the cryptocurrency space, this actually matters a lot.
There is no institution that will regulate the value of a crypto, so it is in fact, purely the trust placed in it that will define and determine its value.
So, if a community strongly believes – as is the case with bitcoin – ultimately – that dogecoin has value. So that makes it a valuable currency, who cares if it was a joke to begin with.
When dogecoin becomes a cryptocurrency like any other… Really?
Well, ultimately, over time, it is a cryptocurrency that has integrated perfectly into the world of cryptocurrencies.
You can buy it, exchange it and trade it and it is present on almost all exchange platforms like Binance for example.
Some people in the community are saying that Dogecoin could reach $1. Its capitalization would be such that it would exceed that of large companies like Starbucks or IBM. In theory, it would be completely crazy to rationally explain such a value given to dogecoin.
🤣 Failing to have no real wealth, or objective value on which it would be indexed, we must find some sort of reason for being.
To the extent that this is a joke, dogecoin has no such principles while remember, other cryptocurrencies are built on principles. Some will be used to pay for services, and others, more fundamental, like bitcoin, will be used to replace state currencies.
In short, now that the doge has conquered people's minds, it is time to find a function for him...
Looking for principle.
The founder himself wonders whether Dogecoin really deserves its success. He specifies that what he would like (because he is no longer part of the project) is that the project continues to serve the good cause. He adds that a good cause is not necessarily doing charity or directly helping others. Contributing to funny or wacky projects are just as valuable.
And, it is in fact, a real philosophy behind dogecoin that the founder wants (in his open letter, in any case) to emphasize.
He says he would like Dogecoin to stay on its "True Value", its true value, its fair value. The positive things that doge brings to the world.
He explains that the "Pump and Dump", the frantic race for profit, the piracy, the theft, the hacks, the insatiable greed; in short, all of that, is "worthless" he adds.
In fact, more than not being true or just values, they are even negative values which bring negativity (“in a world already in difficulty”).
For him, "joy, kindness, learning, generosity, empathy, fun, community, inspiration, creativity, generosity, jokes, absurdity. Those types of things are what make Dogecoin interesting to me."
And he concludes his letter like this.
Now, it remains to be seen whether his message will really be heard... And if speculators will not take over and make it, as with any financial asset, an object that serves financiers above all...
Still, the community seems to be well-knit. Many people use it as a means of payment, as currency in video games and to pay tips also to content creators on Reddit (with the project Sodogetip) . There is still an ever-increasing use and we finally get out of the joke...
What are the particularities of dogecoin?
We have just seen the history of dogecoin but it is time to talk about its particularity as a cryptocurrency.
In fact, Dogecoin is a cryptocurrency and therefore by definition, it can be exchanged and used on a decentralized network. Even if it started as a joke, it remains a real cryptocurrency in its functioning at least.
So, even if we can conclude that the cryptocurrency market is irrational (?), you should know that we use dogecoin like any other cryptocurrency.
Technical characteristics
The founders of the doge had originally counted on a maximum amount of 100 billion coins. For comparison, bitcoin is limited to 21 million for example. However, some time later, the community decided that the doge broadcast would be unlimited. Thus, unlike other cryptos which are deflationary (by limiting supply), dogecoin makes it an inflationary coin.
You should also know that dogecoin is a crypto that is mined. So there are miners who earn doge through mining.
Mining is aimed at people who have some computer knowledge, if you want to read the tutorial for mining doge, it's here.
Rewards for miners have undergone many variations. Initially, the rewards were random and a miner could earn between 0 and 1 million doge. Then, gradually, the rewards were fixed, then they reduced, naturally. We went from 250 doge, then 62, then 15 and recently, the reward is 10 doge per block.
How to use dogecoin?
The doge has its own wallet and it can be downloaded online at the official site.
We learn on the site that the creators still continue with the same funny crypto tone. For example, we learn that one of the employees is called Shibetoshi Nakamoto. You will have understood the play on words between the breed of the Shiba dog and the Satoshi Nakamoto, the creator of bitcoin.
In fact, Dogecoin is a cryptocurrency and therefore by definition, it can be exchanged and used on a decentralized network.
How to buy Dogecoin (DOGE)?
If after reading this great article you want to buy some, don't worry, they can be found everywhere.
That said, keep in mind that this remains a crypto of little use and which obviously follows the trends of an irrational market. So make your purchase with full knowledge of the facts!
👉 Otherwise, one of the ideal platforms to buy doge remains Binance given its large trading volume and available liquidity.
If you don't know how to use Binance (yet), we have a Binance tutorial which you can consult.
Finally, can we take it seriously?
Basically, we can say that now dogecoin wants to normalize. Even if it was claimed to be a huge joke, it is clear that it is no longer really one.
Moreover, since it is used for fundraising and tipping, it could earn its letters of "nobility" with this utility.
But, for the moment, it's still a funny cryptocurrency, and not serious in absolute terms. In addition, like many cryptocurrencies, it is very volatile. A simple tweet made dogecoin take off...And, even if with Musk's momentum, we saw the rise, it could also happen in a downward version.
We must therefore be careful of sometimes brutal market corrections.
The inconvenients
Besides, yes, the real problem would be to really want to invest with the aim of making a profit. As Binance CEO Changpend Zhao reminds us: the doge is too centralized. In fact, there are 20 addresses that alone hold more than 50% of the doges issued. And a single address (the founder) would have 27% of all doges.
This makes it a crypto that is not decentralized enough and is actually at the "mercy" of these whales who own doges.
So even if the person in charge of the press is Elon Musk (said with irony eh), that doesn't make it a serious project...
Afterwards, we can always answer that a lot of projects have big whales, but hey, the debate would be endless...Especially since the CEO of Binance is the head of the largest exchange platform...centralized...
In short... You understand, it's difficult to attack the doge casually.
What do we think of this new wave and why are people buying Dogecoin right now?
You have understood the frenzy around Dogecoin, propelled by Elon Musk's tweets, in part. This would have been the first tweet that would have triggered this whole incredible affair. It simply started with this post of a photo collage of a well-known passage from the cartoon The Lion King. We see Elon Musk carrying the future king being the "DogeCoin"...
Then the symbolism gets carried away and a series of tweets will follow. Likewise, the cryptosphere is booming in its turn and many more will even see the light of day. Still around Dogecoin. This is what we call a viral internet post. 🤪
“Dogecoin is the people’s crypto,” and then “no up, no down, just doge,” are the tweets he posted afterwards.
Elon Musk basically validates the trend he created.
There was also the group Satoshi Street Bets on Reddit. The latter take up the torch from WallStretBets but in a crypto version.
Likewise, some influencers on TikTok have also contributed to this enthusiasm for the Doge.
Amazing, isn't it?
According to an article from Yahoo!, a single tweet with three words from Elon Musk alone would have caused Dogecoin to rise by 20%. Without mentioning the striking power of Elon Musk, we must recognize that this is a huge increase, especially for a crypto that has never hidden from being a joke.
However Elon Musk to clarify on Clubhouse, that he had written his messages as simple jokes. The increase surprised even him, he said.
Elon Musk —The man who blows hot and cold?
We could also devote an entire article to Elon Musk and his incredible impact in the world of cryptocurrencies.
Can you imagine for a second if he had said that bitcoin was a lousy cryptocurrency? Would it have fallen?
Who knows..
In any case, he seems to rejoice in this situation of absolute master of the markets. He is the one who blows hot and cold, thanks to his influence...
We can also wonder why he doesn't use his influence to propel other (more serious?) projects.
What do we think of these jokes from amateur traders in the cryptocurrency market, in general?
Yes, it's time to close this article, I agree with you.
In fact, the question is worth asking because as we saw with the GameStop affair of WallStreetBet, added to the rise of the doge…
Are we really drawing a parallel? In fact, it's not like with the GameStop affair. With doge, there are no listed companies, no short sellers or hedge funds behind it.
However, there are similarities.
The big common denominator in these crazy trading stories is that there are always a huge number of small traders behind them.
So, they certainly do it, for fun and with little means and take things lightly. They invest as they would sports betting or single bets. Yes, it's not more complicated than that. They agree on a fixed price target (like the price of $1000 for GameStop, for example or $1 for dogecoin).
Yes, they willfully ignore market fundamentals and speculate to drive values up beyond their objective values.
And, the strength of social networks and the strength of the group means that they achieve their goals. That's actually the craziest part of all these stories.
Simple little guys make Wall Street shake…why? Because there are a lot of them.
Apparently the SEC monitors this type of situation but we must recognize that it cannot do much, in fact. It went beyond him and it goes beyond all of us…
👏 And, I will conclude like this…The expression “unity is strength” has never been so astonishingly true.
And we realize that ultimately, we could move mountains if we all put our minds to it.
To meditate….
🤞 To be part of the Doge community on Reddit.
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