Dogecoin seems to be defying gravity breaking new all-time highs and leaving crypto veterans like myself. Scratching our heads constantly asking ourselves the fundamental question “Is doge really going to the moon or is it flying too close to the sun?” Now it’s a question oshie here has been badgering me about for months.
And if this is a question that you’ve been asking yourself recently then my video today will be answering exactly that, i’ll be taking an in-depth look at dogecoin and explaining exactly what it is and how it functions. I’ll also be analyzing its market trends and breaking down some of the most important factors that appear to be powering it forward. Yes i will, finally i’ll be letting you folks know where i think doge is headed. Oh and i promise to be as impartial as i can.
Let’s get going with the vid. What’s that oshie? oh of course how silly of me, i am not a financial advisor. I am an educator and a youtuber with an Italian greyhound as a compliance officer. Now clearly this means that nothing in this video can be considered investment or financial advice.
With that, out of the way we would like to welcome all the new viewers to the channel today and if you’re wondering whether we were barking mad, well you must be new to the channel. My name is Guy and i’m the alphahound in the coin bureau kennel. Yes i know we’ll talk about that later on this channel. I cover everything crypto from news to reviews, from coin overviews to market moves.
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It would make oshie a happy pup if you watch the whole way through. Alrighty that’s enough fluff, let’s unpack this. So what the hell is this infamous internet meme that musk can’t stop tweeting about? Well, it was a cryptocurrency that was started as a joke. Really no joke a cryptocurrency in the top 10 of market caps, that was launched for fun. It was founded by two engineers called Billy Marcus and Jackson Palmer.
Marcus worked at ibm and Palmer at adobe. Neither of which had any experience in crypto in fact. Marcus taught himself how to develop a coin using a guide. He found online the year was 2013 and at the time there was a meme of a Shibainu looking quizzically into a camera. According to this article in business insider, the original intent of the project was to be a quote parody of all the serious clone coins that were trying so hard to differentiate themselves, but all seemed the same.
So dogecoin was the self-deprecating example of a clone coin, trying to be the next bitcoin and on the 6th of december 2013, the first blog was mined on the technical side. Dogecoin is based on a proof-of-work cryptocurrency called lucky coin. This was actually a fork of litecoin. Which is why dogecoin can be merge mined with litecoin and more on that in a bit. I know much random but that’s not as random as the original block reward structure.
Block rewards could be anywhere from one doge per block. All the way up to one million dogs per block pretty crazy. Now i should also point out that there was no pre-mine of dogecoin yep. The founders mined it at the same time as the new miners and kept very little of the doge for themselves.
That just shows you how much they thought of dogecoin as a joke. And less than a year after founding dogecoin, Marcus left the project and handed all devwork to palmer. Oh quick point on that random block reward it turns out that it was not as random as they initially thought. And some dogecoin miners were able to find a way around it and disproportionately mint high value blocks when this was found out in 2014.
It was posted on the dogecoin subreddit. The developers then decided that they would remove the randomness component altogether and the block reward was fixed at 10.000 doge per block since a dogecoin block is mined every minute. This meant a supply growth of 5.2 billion doge therefore with a current supply of 129 billion doge. This implies an annual inflation rate of about four percent.
So unlike bitcoin which has a capped supply. Dogecoin will have an inflation rate that will approach zero over time that’s an important point to get across when it comes to network efficiency. Dogecoin can handle around 30 transactions per second which implies a transaction time of about five to ten minutes. The average transaction fee is about one cent.
Now this is faster and cheaper than bitcoin mainly, because the block times are one minute as compared to 10 minutes for bitcoin although. This is faster and cheaper than bitcoin. It is a lot less efficient than most other blockchains out there.
It is after all still a proof of work chain when it comes to security, it has the backing of litecoin miners. This is because as a fork of litecoin, it uses the script mining algorithm through dogecoin’s auxiliary proof of work upgrade in 2014.
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📺 21 Million Reached 👉 https://www.youtube.com/watch?v=rnKdpf-P1TI
📺 Charles Hoskinson on Doge 👉 https://www.youtube.com/watch?v=rM9DWe3-glg
– TIMESTAMPS –
2:17 What is Dogecoin?
6:12 Dogecoin Use Cases?
10:22 Why DOGE Pumps?
14:16 Who Invests in DOGE?
16:44 Can it Reach $1?
20:33 Implications for Crypto
⛓️ 🔗 Useful Links 🔗 ⛓️
► DogeCoin Rich List: https://bitinfocharts.com/top-100-richest-dogecoin-addresses.html
► Merged Mining: https://research.binance.com/en/analysis/merged-mining
► Billy Warning DOGE: https://twitter.com/BillyM2k/status/1382790863621824512
► Potential Updates: https://www.coindesk.com/dogecoin-surging-price-resurrected-technical-development
► Dogecoin Concerns: https://www.cnbc.com/2021/02/10/elon-musk-dogecoin-tweets-disconcerting-bitcoin-bull-nic-carter-says.html
► Doge Millionaire: https://www.cnbc.com/2021/04/22/reddit-trader-im-a-dogecoin-millionaire-inspired-by-elon-musk.html
► History of Dogecoin: https://www.businessinsider.com/dogecoin-go-back-down-right-now-price-livee-billy-markus-2021-4
📝 What is Dogecoin? 📝
It was founded by two engineers called Billy Markus and Jackson Palmer. Markus worked at IBM and Palmer at Adobe
So, Dogecoin was the self depricating example of a clone coin trying to be the “next Bitcoin” and on the 6th of December 2013, the first block was mined
Dogecoin is based off of a proof of work cryptocurrency called ‘luckycoin’. This was actually a fork of Litecoin which is why Dogecoin can be merge mined with Litecoin
Block rewards could be anywhere from 1 DOGE per block all the way up to 1 million DOGE per block. I should also point out that there was no premine
The developers then decided that they would remove the randomness component altogether and the block reward was fixed at 10,000 DOGE per block. Since a Dogecoin block is mined every minute, this meant a supply growth of 5.2 billion DOGE
When it comes to network effeciency, Dogecoin can handle around 30 transactions per second which implies a transaction time of about 5 to 10 minutes. The average transaction fee is about 1 cent
📈 Why Dogecoin Pumps 📈
– Meme Culture
– Social Media
– Elon Musk
We live in an age of memes. It therefore makes sense that a Shiba inu meme like Dogecoin would take off so well. It’s instantly relatable and easy to remember
As we know, social media is able to amplify memes and make them go viral. Memes feed on themselves and supercharge that engagement. This is especially the case with TikTok where it has been trending the most
You also have the impact of Elon Musk and all of his pro Dogecoin tweets. Elon has been riding the Dogecoin meme like nobody’s business. Indeed, you can almost perfectly track the price pumps in Doge to his tweets about it
Then you have Robinhood which means that it is a lot easier for these newbies to invest in DOGE through a simple trading interface
🤔 Why They Invest 🤔
There are three types of Dogecoin investor. You have those that are investing purely because they are having fund and enjoy the memes. They know the risks and are more than happy to take part in the pumps / dumps.
Then you have those that are merely investing because they really think that it could be the next world currency. They follow every one of Elon’s tweets and are not taking adequate risk management steps. These appear to be the most dominant
When these investors take out these risks they push up the price of DOGE and this creates a feedback loop. People think that the price performance is indicative of a valuable crypto.
🤔 Implications For Crypto 🤔
When people are burned, there will be a lot of inquiries. These will come from regulators and politicians who will want to target crypto in general for the failings of DOGE
This was raised by Charles Hoskinson in a recent video of his where he took issue with the fact that so many noobs were piling into DOGE. There will be implications
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss. The speaker does not guarantee any particular outcome.
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