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