CRYPTOCURRENCY (Conspiracy Talk News) – It all started with an absurd joke, a satire on the bitcoin that was born from “doge”, one of the most popular Internet meme.
At first, nobody paid attention to him. Who was going to take seriously a cryptocurrency that had as a logo, the meme of a Japanese dog?
And it was cause for laughter … until it ended up reaching multi-million dollar figures .
The idea was Billy Markus , an American programmer who worked as an engineer at IBM, and Jackson Palmer , an Australian who was in charge of the marketing department at Adobe Systems.
Together, they launched a new currency in 2013 which they called “dogecoin”, with the intention of making fun of the “crypto-fever” .
Soon, your currency began to expand through internet forums. 15 days after launch, its value had multiplied by 300. “The price is not even important,” said Markus then.
But over the years -and, especially, in December of 2017- its value began to inflate, until reaching the US $ 2,000 million -US $ 1,928, to be exact- during the first weekend of January of this year.
Did the joke come to the business world?
Over the last few days, the price of dogecoin has not stopped fluctuating. At this time, its value exceeds US $ 1 . 200 million , according to Coinmarketcap.com .
But the rebound of December has aroused the alarms of the most “crypto-skeptics”
The dogecoin (still) is far from catching bitcoin , the queen of virtual currency, which today exceeds US $14,000 per unit and has a total value of US $240,000 million .
Although, considering that it began as a parody of the bitcoin boom, it is interesting to know what its creators think.
Palmer was not very happy. “The fact that most conversations in the media and between individuals focus on the potential investor is worrisome,” he said earlier this month.
Until its recent boom, dogecoin was little more than a joke on internet forums.
But the reputation of the cryptocurrency grew as their community began to demonstrate some of their charitable efforts related to the world of sports.
In 2014, its investors donated US $55,000 worth of dogecoins to retired NASCAR driver Josh Wise .
That same year, they raised US $ 25,000 to support a Jamaican Olympic team, and the community has also financed water projects in Kenya.
But is it worth investing in dogecoins?
“One thing to keep in mind is that there are many more dogecoins than bitcoins, ” explains Robert Plummer, BBC’s economics correspondent.
“The rules that support bitcoin stipulate that only 21 million bitcoins can be created, and that figure is getting closer and closer to being reached, and it is not clear what will happen to the bitcoin value when that limit is reached.”
Dogecoins are “mined” (or manufactured) in the same way as bitcoins, that is, they are created through computer processes.
“However, unlike bitcoin, there is no limit to the number of dogecoins that can be produced, and today they reach a staggering 100 billion,” says Plummer.
“That helps explain why each dogecoin is worth less than US $ 0.02 today , while bitcoins have been worth up to about US $ 20,000.”
Common sense tells us that scarce goods are more likely to maintain their value than the most abundant ones.
“But in the world of cryptocurrencies, common sense is perhaps a poor guide to future BEHAVIOUR,” says Plummer.
And in the world of experts in economics, there is still a lot of skepticism about each of the new cryptocurrencies that come to market.
Ethan Ilzetzki, of the London School of Economics, in the United Kingdom, tells Conspiracy Talk News team that “a digital unit has no intrinsic value, unless it can be used in transactions.”
“I can not name you a single cryptocurrency that is more useful in transactions than a credit card denominated in dollars, pounds or yen, ” adds the specialist.
“There is nothing intrinsically wrong with digital currencies provided privately, but they need to be well designed and well thought out .”
“They are very valuable because people say they are worth it, I have little confidence that they will be worth much in the long term.”