The Dogecoin absurdity (and why people buy it?)

this episode is brought to you by skillshare the first thousand people to use this link will get a one month free trial of skillshare click the link in the description this story started as a joke but it became one of the most noticeable cryptocurrencies as of late from the olympic games to elon musk deutschkan has been everywhere though the humor was evident at first many ask themselves is it for real or is it still a joke well when billionaires swear by it maybe it's time to start taking it seriously it's time to talk about deutsche and how a joke can change the world dogecoin's story begins to most people as a joke cryptocurrency but there's more to it than humor in 2013 jackson palmer an adobe engineer had a hobby of following the cryptocurrency crates take bitcoin for example that year its value went from 266 dollars dropped to 50 100 70 and by the end of the year 140. and around that time a shiba inu became the go-to meme for mispronounced knowledge on anything and everything earning it the nickname deutsch one night after a long day palmer tweeted some magic words investing in deutsche pretty sure it's the next big thing and boy was he right at that moment the tweet had some traction so polymer decided to buy the site and post a picture of the iconic dog with some comic sans writing much wisdom we have to say but of course it was a small gesture and still it was enough to reach billy marcus thousands of miles away in portland marcus was a software engineer who had tried to no success to create his own cryptocurrency so when he saw the website he decided he should make the coin and he tweeted at polymer but he started working on dogecoin even before he got a response he has claimed it took him three hours to develop deutsche quinn so by the time palmer replied all marcus had to do was convince him that deutschkan worked and so doshkin was born but what was so different about it that's why you're my g-o-g-e you're dogs what are you talking about you're watching the believed origins of the term deutsch these few seconds would explode years later like it was only a joke but that essence remains engraved deep into this crypto's dna to understand it let's discuss how dogecoin was born and how it differs from bitcoin for example well first of all bitcoin is satoshi nakamoto's creation whoever he or they are the intention was to create the leading digital currency in a decentralized financial system but deutschland had no such goals so there are key differences for example let's look at security because marcus created the coin so quickly experts believe it lacks critical aspects other cryptos have then there's the source bitcoin is in short words the og crypto with its blockchain proof of concept it's an essential piece of the cryptocurrency world usually developers spin off their tokens from bitcoin if you don't understand some of this terminology you should definitely check our blockchain explained with subway cars video so you can say that deutsche is bitcoin with a dog face on it that's not entirely accurate marcus has stated that all he did was take bitcoins coding remove the parts where it said bitcoin and replace them with deutsche coin but even that is shying from the truth deutsche coin is actually closer to litecoin and allows for faster mining and transactions dodge coin also uses a different consensus mechanism instead of using bitcoin's shot 256 it uses script technology like litecoin and then there's the most significant difference bitcoin has a finite amount of points available on the blockchain so it's expected that the last bitcoin rewards will issue in the year 2140 in theory deutschland used to have a limit it started with 100 billion coins one of the highest in the world and after reaching it in 2015 document went to an unlimited cap of sorts in theory deutsche will issue 5 billion coins per year from 2015 onwards so while bitcoin creates scarcity dogecon is the opposite and finally there's the value many factors lead to a drastic difference between them by july 2021 when bitcoin was worth 32 000 dollars plus when deutsche and had a value of about 20 cents of a dollar now when in december 2013 palmer and marcus launched deutsche they had lost control their creation was out of their hands and neither could predict what followed according to coin market cap at 8 42 a.m on december 15 2013 deutsche value was 0.05 cents and that same day at 5 16 p.m that value had almost doubled to 0.09 cents from then on the roller coaster ride became a mainstay in dogecoin's dna between january 2014 and may 2017 the crypto oscillated between 0.009 cents to 0.15 cents but by july 2017 dogecoin reached a high at the time of 0.38 cents at its highest this crypto had everyone jumping with joy and some quite shocked it was fulfilling the doge community's motto to the moon at its lowest critics rejoiced insisting it was a joke the dogecoin is sport meanwhile the deutsche community kept going working with charities and notable causes for example during the 2014 winter olympics they created a fund to finance the jamaican bobsled team and shiva kavashan they also worked with nascar racing teams and water supply in africa so some might see it as a joke but deutsche quinn was getting serious it was even part of the 2017-2018 crypto bubble in january 2018 it reached a value of 1.7 cents and it even crashed along the rest when the bubble burst in 2018.

In that sense deutschen was no different from other cryptocurrencies but in late december 2020 its behavior changed dodgecoin saw a rise in value like never before it didn't slow until may 7th when it reached an all-time high of 73.8 cents breaking that critical 50 cent line but it also meant a 7200 percent increase in value in 2021 alone then two days later dropped 43 in value so what was behind this crazy roller coaster well dogecoin itself it's all about the cult behind dogecoin 2021 has been crazy for the coin thanks to some big names so naturally every mention causes drastic changes in its value and what's interesting about dogecoin is that some news outlets to this day call it a joke coin or a meme point but it's in the top 10 of coin market cap plus those big names are huge mark cuban owns the dallas mavericks and he's no stranger to the spotlight in march 2021 he announced that the team admitted dogecoin for tickets and merchandise and his reasoning because we can now this isn't new for the mavericks they have accepted bitcoin since 2019 another team the sacramento kings do so since 2014 but that was bitcoin not this joke deutsche but basketball is no match to a boost from another billionaire of course we're talking about elon musk musk is no stranger to controversy or naming his kids with mathematical equations but he also has an intense affair with deutsche quinn he nicknamed himself the doge father his snl comments shook the crypto world plus he once tweeted dogecoin is the people's cryptocurrency so when he speaks people listen with deutschko it's no different every time he mentions any crypto the market has to brace itself musk has been unpredictable but mostly on the positive side mostly once he took to reddit to ask users how to improve the joke coin and dogecoin went up 10 but those snl comments caused the value to drop 30 in july 2021 musk and twitter founder jack dorsey announced a live conversation for a cryptocurrency platform immediately the world brazed for impact because nothing was off limits and in the meeting he suggested using ethereum and dodge coin for lower costs and faster transactions so the value went up and so on to a degree that's what dogecoin is all about it's irreverent when other cryptocurrencies want to be serious and what's ironic well the world does take it seriously so deutsche began as a joke and for a long time it was but as we venture further into the future more and more people have stopped laughing and putting money into it and who knows perhaps it will reach the moon now all this might feel overwhelming but you don't have to feel like it's impossible to learn cryptocurrencies and that's where skillshare comes in skillshare offers thousands of inspiring classes for creative and curious people on topics like illustration and design photography video freelancing and yes cryptocurrency so check out this video by melting demiuros called the mystifying cryptocurrency it's a straightforward class on what cryptocurrency is how it works and where it's going next click the link in the description for a free one month trial on skillshare and don't forget to hit that subscribe button we'll see you next week [Music]

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