Is Dogecoin a Joke?

Is Dogecoin a Joke?

Within months, what started as an internet joke quickly became one of the most highly valued cryptocurrencies. Spurred on by its base of online supporters, Dogecoin quickly changed from a joke to something very real.

What is Dogecoin?

Even if you are unfamiliar with internet meme culture, you have probably heard about Dogecoin in recent months.  Pronounced “dohj-coin,” it is a cryptocurrency that facilitates individual transactions through a decentralized network. Like its predecessor Bitcoin, you can get coins by solving math puzzles.

However, Dogecoin was never intended to be a legitimately traded digital currency. It combined the concept of blockchains with a popular internet meme featuring a Shiba Inu that spoke in monosyllabic words that appeared in comic sans font. Its creators never dreamed it would blow up like it did. Rather, they expected Dogecoin to quickly die off once the novelty of the joke wore off.

Where Did Dogecoin Start?

Dogecoin was born from a joke between two software engineers from opposite sides of the globe. Jackson Palmer, who describes himself as your “average geek,” was working as an Adobe software engineer in Australia when he came up with the idea. He combined two wildly popular cultural phenomena – the Doge meme and cryptocurrency – to create Dogecoin.

Meanwhile, an IBM software engineer, Billy Markus, had been developing a new cryptocurrency derived from Litecoin. Markus was looking to appeal to a broader market interested in more than profits. After posting the idea for Dogecoin, Markus tweeted at Palmer, expressing his interest to work together. Both men thought it was funny, so they ran with the joke and made an actual coin stamped with the meme. In December 2013, the pair launched Dogecoin and it soon gained traction among the Reddit community.

How Is Dogecoin Different from Other Cryptocurrencies?

While many speculate that Bitcoin will revolutionize monetary transactions in the 21st century, Dogecoin is a meme that has been stamped on a coin. Its founders never had plans to compete with larger cryptocurrencies. Markus and Palmer created Dogecoin as a joke. It was never designed to serve any other purpose that to get a few laughs.

Like other cryptocurrencies, you mine the coins by completing math puzzles. However, the rewards are entirely random. You could earn anywhere from a single coin to several hundred coins for each one you solve. Furthermore, there were no limits on the number of coins the system could produce.

How Did Dogecoin Become More Than a Joke?

Although Dogecoin started out as a joke, that was all about to change. Reddit threads quickly picked it up and users began trading it as a source of kudos and thanks for comments. After the introduction of the “tipping bot,” stock prices soared as people continued tipping each other with Dogecoin. However, as they shared the cryptocurrency, it greatly expanded the user base and increased its value.

One week after it launched, Dogecoin become the second-most used cryptocurrency for internet tipping. The community grew as it created mining pools and normalized trading Dogecoin between members. One reason for its widespread popularity comes from the Internet sub-culture that prides itself on its irreverent attitude towards corporate America and Wall Street. The fact that it started as a joke is partially what helped drive the buzz about it.

Another factor that helped legitimize Dogecoin as a viable cryptocurrency was the famous people attaching their names to it. Dogecoin was no long a joke when it was validated by a $1.5 million investment from Tesla. Memes and social media posts from celebrities like Snoop Dogg, Soulja Boy, and Gene Simmons further popularized it. Elon Musk even posted one himself with a spoof fashion cover titled “Dogue.” Following a string of tweets as well, Dogecoin shares skyrocketed nearly 1,500% this year.

What is the Current Value?

Dogecoin hit a new milestone in 2017 when it reached $2 billion. However, it now has an estimated market value around $10 billion. Its stocks are worth more than Under Armour, Western Union, and Xerox.

When the markets opened on January 1, 2021, Dogecoin sold at $0.0057 per share. Within a few short weeks, it peaked on February 7 at $0.0788. Since the beginning of the year, the valuation has stabilized, closing at $0.055 on Friday, March 12.

What Can I Use Dogecoin for?

Even though shares are only worth about a nickel each, you can still buy and sell Dogecoin. As long as you have a credit card, you can purchase it through cryptocurrency exchanges and trading apps. Any exchange where you can trade Dogecoin will also convert it into traditional currencies as well.

Although cryptocurrency has not yet become a standardized form of payment for most major retailers, it is still worth something. You can trade in your Dogecoin at dogeswag.com for a wide selection of doge swag apparel. There is also the option to redeem gift cards at Bitrefill.

What’s the Future for Dogecoin?

Dogecoin’s rapid rise was primarily driven by Reddit users. However, when profiteers began taking over and driving up its valuation, both founders quickly got out of the venture. Both Palmer and Markus have distanced themselves from the cryptocurrency, especially after the Moolah debacle.

Instead, the founders have given all their Dogecoin to charity initiatives to use Dogecoin as force for good. When the Jamaican bobsled team qualified for the Winter Olympics in 2014, they set up a Dogecoin address on subreddit and raised $25,000 for them. They have also raised money to build wells in Kenya and train service dogs for autistic children.

When questioning the future of Dogecoin, I look at how the creators view it themselves. In an interview, Markus stated that he doesn’t “think it solves anything. If anything, it exists as an educational tool. It’s a reminder that we can’t take this stuff seriously. ”

What we can all learn from Dogecoin is that future of cryptocurrency remains uncertain. Until it becomes a widely accepted for retail transactions, it will always be vulnerable to the market’s volatility. As Markus advised, “keep educating yourself as much as you can on how cryptocurrency works, how these markets work, never risk more than you could safely lose, be vigilant and aware.”

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The Ways of Transaction: Coins, Bills, Cards and Cryptocurrency Exchange

In this modern era, money is one of the most important commodities. You might think that it is not healthy to obsess about money (and you are most probably right) but you cannot deny that having a lot of money helps a lot. With money, you can have opportunities that you never had before. Buying your wants and needs is not a problem anymore when you have a ton of cash in your bank account or something. You can also travel around and see the places you have never been before. It may not be the best thing for your morality, but material-wise you are already okay if you are a rich person.

However, using real world money was not always easy. In the ancient times, barter was the most common way of transaction with other people. The literal exchange of goods and services did not involve any currency at all; it involved other goods and services. It was built around trust and knowing who you are trading with and what you are trading for. There are a lot of rules surrounding it as well, especially with the corresponding exchange as the items and services are not always similar to each other. It worked for them, but it may not work now as currency is already involved.

Precious metals like gold and silver were the first ones that were made into round circular shapes that we know now as coins. It still worked the same way it does now, however the cost of it changed according to its weight. The heavier the coin is, the larger its value in the market. It worked for quite some time as a lot of kingdoms used it. From the Ancient Greeks to Chinese, it was the only currency that they had for a very long time. It wasn’t enough however, as the times changed yet again and people started using paper bills. Read more about the history of money here: https://www.investopedia.com/articles/07/roots_of_money.asp

One of the advantages of using paper bills is it doesn’t increase its weight while its value also increases. You can carry it around without having a lot in your pocket. Imagine carrying a few hundred pieces of pennies instead of one singular bill with the same value: which one would you choose? If you choose the former, then you might be a masochist or you just really need to have the change at hand. Nevertheless, the paper bill has been in use for many decades now, but the cards have arrived in the modern world.

Credit or debit cards are even more lightweight than your paper bills. You can also store even more money inside without increasing its weight. Theoretically, it can also be limitless in it money storing capacity. You can also just connect it with your smartphone for faster and easier transactions. With a few taps, you can acquire your wants and needs without even taking out your wallet. It is so convenient that many people in first world countries are transitioning into this kind of set-up. Click here to read more about this.

However, there is also a far more convenient way for that.

Cryptocurrency is considered as one of the fast-emerging currencies in the modern world. Created to fill the idea of a common currency for the world, cryptocurrency is now becoming one of the most profitable ways to make money. You can even buy them in the world market. There are many kinds of cryptocurrencies that you can use like Bitcoin and Ethereum. Transacting with cryptocurrencies is also safe for users as you need to have a private key to access and continue with transactions. You can even “mine” cryptocurrency, like looking for it across its platform. Also, there are sites dedicated to sharing and exchange of cryptocurrency like rubix.io. You can find other people who are using cryptocurrencies and connect with them like any social media site. It is such a convenient way of trading that many users believe that it is better than the cards and paper bills.

No matter what kind of currency you are using, just make sure that you got it in honest means. As long as you worked hard for it, there is nothing wrong with spending it for yourself and your family. Use it responsibly, and it can take you to places you have never even imagined before.

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