January 2, 2025 • 25 mins
In this episode, we dive into the fascinating world of Dogecoin, the cryptocurrency that started as a joke but now boasts a multi-billion dollar market cap. We explore its quirky origins, its surprising technical underpinnings, and the role of Elon Musk in its meteoric rise. Can a meme-based currency really challenge traditional financial wisdom? We’ll answer the big questions: How did Dogecoin go from a satirical project to serious money? Can you actually buy things with it? And is it all just a bubble? Join us as we unpack the history, the technology, and the future of this unconventional digital asset.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
[Music]
(00:22):
[Music]
(00:47):
All right, let's dive in. Today we're tackling something pretty unique I think. We're looking at Dogecoin,
Dogecoin, which you know for folks who haven't been following along, you know in the crypto space it's this cryptocurrency that started as a joke.
But now it's got you know a multi-billion dollar market cap. So we've got articles you know kind of tracing its history, stuff about Elon Musk. He's been very public about his support of Dogecoin.
(01:16):
And even some of the technical breakdowns from the Dogecoin website itself. Yeah, yeah.
So we're going to try to answer the big questions. You know how did this joke become serious money?
What is Elon Musk's real role in all this? Can you actually buy things with Dogecoin and should you?
And you know the big question that I think everybody wants to know is this whole thing just a bubble.
(01:39):
Right, well what's fascinating to me is like it really challenges our idea of value. So like traditional finance, right?
Scarcity is king. It's like you know limited edition collectibles that kind of thing. But Dogecoin is literally unlimited in supply.
Right. So it throws that whole concept out the window. Yeah, it's a good point.
So the fact that it's thriving despite going against that traditional financial wisdom I think that's really intriguing.
(02:04):
Right, it's like the more there is the more people want it or the more it's worth or right. I don't know it's a it's very strange.
It's bizarre. Yeah. Yeah. So how does this whole thing get started? I know it started as a joke, right?
It did. It did. It started as a complete joke back in 2013. There are these two software engineers, Billy Marcus and Jackson Palmer.
(02:27):
And they you know saw this this Bitcoin height that was starting to bubble up. Right. They just thought it was kind of ridiculous. Right.
So they created Dogecoin is this way to kind of satirize the whole thing. Okay. They never they never actually thought that it would become you know a serious investment.
It was just to kind of poke fun at the whole craze. And they slap a sheba inu dog on it and call it Dogecoin and it becomes a multi billion dollar asset.
(02:51):
Yeah. It's really kind of amazing. I know wild.
I guess I guess part of it though is just how recognizable that Doge meme is right. Like people see it. They kind of get it immediately.
Oh, absolutely. It's totally mean fact. Right. If the huge part of its identity. Right.
It's approachable. Right. It's not as intimidating as something like Bitcoin. Right.
Which you know can feel very serious and very complex. Yeah. Bitcoin feels very serious. Right. Dogecoin feels very unserious, very silly.
(03:19):
Silly. Yeah. Exactly. But then you know to your point earlier about it challenging the idea of value like I s valuable. Right. Yeah.
It's very strange. And I think the community that grew around Dogecoin is really another key to its rise. Okay.
I mean they've been incredibly active. You know not just in in online forums, but like using DOGE for real world causes. Yeah.
(03:44):
Like they funded clean water wells in Kenya. They helped the Jamaican Bob sled team get to the Olympics. Oh wow.
They even use it for scientific research. This project called DOGEcoin folding at home. Hold on. Dogecoin folding at home.
Like I know people use it to tip on Reddit. Yeah. Some places will accept it as payment, but like funding scientific research.
(04:06):
That's a whole other level. It is. It is. So what is what is DOGEcoin folding at home? Like what's actually happening there?
So it basically taps into the processing power of people's computers. Okay. So it's kind of like a decentralized supercomputer. Okay.
Where you know people are donating their spare computing power to help scientists with these complex tasks. Right.
Like protein folding research, which has implications for understanding diseases, developing new drugs. No. Wow.
(04:33):
And they get rewarded with DOGEcoin for their contributions. Interesting. Yeah. So just a really fascinating example of how this joke currency is being used to have a real world.
Yeah. That's really impressive. So how does DOGEcoin actually work like technically? I mean, I know it uses blockchain technology, but is it similar to Bitcoin like under the hood?
Yeah. Or there's some big differences. Yeah. So there's similarities and there's some key differences. Okay.
(04:57):
So like Bitcoin, DOGEcoin relies on a blockchain, which is that public ledger that records every transaction. Right.
And it uses this proof of work. List them. Okay. So miners are solving complex mathematical problems to verify transactions.
And then they can verify transactions, add them to the blockchain. Right. But where DOGEcoin diverges is its algorithm. Okay.
(05:18):
So it uses script, which was initially designed to be more resistant to specialized mining hardware. Okay.
That was kind of dominating Bitcoin mining at the time. Okay. So the idea was to keep DOGEcoin mining more accessible to everyday users.
Kind of going back to that whole community driven spirit. So they're essentially trying to like level the playing field a bit. Yeah.
(05:39):
Right. Make it harder for big mining operations to just come in and like dominate DOGEcoin. Right. Right.
But how does that, how does that choice of algorithm affect, you know, things like energy consumption? Right.
Because that's one of the big criticisms of Bitcoin is, you know, the massive energy footprint. Yeah. That's a crucial point. Okay.
And actually script is more energy intensive per transaction than Bitcoin's algorithm. Interesting.
(06:05):
However, because the overall value and transaction volume of DOGEcoin are significantly lower than Bitcoin, its total energy consumption is much less.
Okay. So it's kind of a trade off there. It is. Yeah. There's a trade off. And it's something that, you know, the DOGEcoin foundation, which we can talk about later, they're actively exploring that as they work on improving the technology.
(06:27):
Okay. So they're aware of those concerns. But I guess the other big difference, right, with with Bitcoin is, you know, we talked about it earlier, DOGEcoin's unlimited supply, which again, it's just fascinating to me because it goes against what we normally think of as valuable, right?
Right. Wouldn't that potentially lead to inflation and devalue the currency over time?
(06:50):
That's the big question. Yeah. And it's actually a major debate within the DOGEcoin community.
Okay. You know, there are valid arguments on both sides. Yeah. Some people think that unlimited supply makes it more accessible for micro transactions in everyday use.
Okay. Kind of like a digital version of loose change. Yeah. Right. Yeah. But then others, they worry about those inflationary risks. Right.
(07:13):
And whether it can hold its value long term. Yeah.
So, you know, it's a question that probably won't have a clear answer until we see how things play out. It's like a giant economic experiment in real time.
It really is. Yeah.
But how does that, I mean, how does that unlimited supply then play into like the price?
Because I know DOGEcoin has been notoriously volatile. I mean, you know, prices will soar and plummet sometimes in the same day. It's crazy.
(07:41):
And that volatility is partly due to that unlimited supply. But it's also, I mean, let's be honest, it's also heavily influenced by market trends and the Elon Musk factor.
The DOGE father himself. Yeah. The DOGE father. Yeah. I mean, there's no denying that his tweets about DOGEcoin can, you know, move the market.
Oh, absolutely.
(08:02):
But isn't relying on a single influencer, even someone as powerful as Elon Musk, kind of risky.
It's a huge risk. Yeah. It's a huge risk. Like, what if he gets bored with DOGEcoin? Right.
And moves on to something else. You know, it's, it's, it's, it's, it's, you're right. It's a major vulnerability for DOGEcoin.
Yeah. And I think while his endorsements have, have brought attention, even some legitimacy. Yeah. To DOGEcoin, it's created this dependence. Right.
(08:28):
That makes it really susceptible to his whims. Yeah. So, you know, the DOGEcoin foundation, which we've mentioned, yeah, they recognize this.
Okay. And they're really actively working to kind of broaden its appeal, diversify its use cases.
Beyond just being Elon Musk's favorite crypto current. Yeah. Exactly. Yeah.
Which makes sense. I mean, if they want it to, you know, reach its full potential that needs to have a more sustainable foundation. Right. Absolutely.
(08:52):
So speaking of the DOGEcoin foundation, like, what role do they actually play in all of this? Yeah.
So the DOGEcoin foundation, they're basically the guiding force behind DOGEcoin's development. Okay. So there's this nonprofit organization. They were revived in 2021. Okay.
And their mission is basically to support the core software development, protect the DOGEcoin trademark and just promote its use and adoption. Okay.
(09:18):
So, you know, they have this roadmap for the future that includes things like making DOGEcoin more user-friendly, improving its security, even exploring potential integrations with other blockchain projects.
So they're not just like sitting back and watching this whole meme magic happen. Right. They're actually, yeah, they're working to try to make it a more robust and sustainable cryptocurrency. Yeah.
(09:39):
It's interesting because they have this really delicate balance to strike. Okay. You know, they want to improve the technology, make it more viable for widespread use. Right.
But they also want to maintain that playful community-driven spirit that makes DOGEcoin so unique. Right. Yeah. It's a tough line to walk. It is. It is.
(10:00):
You know, because, you know, you take away the playfulness. It becomes just another, you know, cryptocurrency. Right. But, you know, if you don't improve the technology, then it's never going to be taken seriously. Right. Exactly. Yeah.
It's really interesting. And, you know, it's almost like they're trying to tame a wild animal without taking away its spirit. Right. And speaking of wild animals, I mean, there's another aspect of DOGEcoin that can feel a bit untamed. And it's this transparent blockchain. Right.
(10:27):
Anyone can see every single transaction that's ever taken place. We touched on that a little bit earlier. Yeah. It raises some interesting questions about privacy.
It does. But before we dive into that rabbit hole, maybe let's take a closer look at like how that radical transparency actually works. Right.
Like, what can someone actually see on the DOGEcoin blockchain? Yeah. What are the implications for users? That's a great place to kind of pick up. It's where things get really interesting. Yeah. I think so. Yeah.
(10:55):
All right. Well, let's take a break and we'll come back and, uh, and we'll unpack that a bit more sounds good. Okay. So about that blockchain transparency. Yeah. It's, it's kind of like having a public record of every DOGEcoin transaction ever made. Okay.
But it's, it's not as simple as just like looking up someone's name and seeing their entire financial history. Okay. So it's not like a DOGEcoin version of big brother watching my every move. Exactly. Yeah.
(11:23):
But what can someone actually see on the blockchain? Like can they can they snoop on people's, you know, DOGEcoin wallets?
So not exactly. You can't see people's names or like personal details directly. Okay. But what you can see are wallet addresses. The amount of DOGEcoin transferred between them, the time and date of each transaction.
(11:44):
So it's like the financial breadcrums. It is. Yeah. It's like the digital trail. Okay. But you wouldn't necessarily know who's behind those wallets. Right. You wouldn't immediately know.
Unless you had other pieces of information to kind of connect the dots. Exactly. So it's like a puzzle with missing pieces. It is. Yeah.
You have, you have the transaction data, but you need more information to actually identify the individuals involved. Right.
(12:05):
But what if, what if someone is really determined to like deanonimize those transactions? Like is it possible to kind of crack the code?
It's possible. Okay. But it requires a lot of effort, sophisticated techniques. Okay. It might involve like tracking those breadcrums across multiple transactions, thinking for patterns.
(12:27):
Maybe trying to link those wallet addresses to real world identities through other online activities. So you're like a digital detective. Yeah. Yeah.
Trying to to solve a case with limited clues. So it's not something that, you know, the average person could easily do. Right.
But it's, it's not impossible for someone with, you know, the right skills and resources. Right. Exactly.
(12:49):
So that's something to keep in mind if you, if you value your privacy. Yes.
But you know, what about the positive side of this transparency? I mean, we've, we've talked about how it can increase accountability. Right.
Like if, if every transaction is recorded on this blockchain. Yeah.
It's, it's a lot harder for anyone to kind of engage in fraudulent or unethical behavior. Right. Yeah. It's like having this built in audit trail. Right.
(13:12):
Makes it more difficult to kind of cook the books or hide, you know, shady dealings. Right. Right.
And that can create a greater sense of trust within the system. Yeah.
Which is, which is essential for any currency. Right.
Whether it's, you know, traditional or digital. Yeah. No, I see what you mean. Yeah.
Like if you, if you know that everyone's transactions are kind of out in the open, you're, you're more likely to feel, you know, profit using that currency.
(13:38):
Absolutely. Yeah. But there's also the question of how this transparency then affects, you know, the dogecoin ecosystem as a whole. Yeah.
Does it, does it help or hurt its development and adoption? That's a great question. And I think it does both. Okay.
So on the one hand, that openness can attract developers who are really passionate about open source projects. Okay.
(14:01):
They can see exactly how dogecoin works. Right. They can contribute to its development. Yeah. And potentially even build new applications and tools on top of it.
So it's like a giant sandbox for, for, you know, tech-sati folks who want to play an experiment with, with, with a real world cryptocurrency.
Absolutely. But, but on the flip side, doesn't that transparency also make dogecoin more vulnerable than to, to hackers and scammers? Yeah. It's a valid concern. Right.
(14:29):
Like they, they can see the code, they can analyze the transactions and potentially find, you know, exploits. Right. It's like leaving the blueprints to your house out in the open for anyone to see, including those who might want to break in. Right.
But the dogecoin foundation is, is very aware of those security risks. Okay.
They're constantly working to improve the code, patch vulnerabilities and just make the network more resilient to attacks. So it's a bit of an arms race.
(14:55):
It is, yeah. We're trying to stay one step ahead of the bad guys. Exactly.
Making the system as secure as possible. Right.
But there's, there's another aspect of, of transparency that I think is worth, worth highlighting. Yeah.
That's the transparency of the dogecoin community itself. Oh, absolutely.
I mean, the dogecoin community is incredibly open and welcoming to newcomers. Yeah.
(15:17):
It's, it's one of the most vibrant and supportive communities I've ever encountered in the crypto space.
I've heard that people talk about how, how helpful and encouraging the dogecoin community is.
Even to folks who are like totally new to cryptocurrency, they don't, they don't gatekeep. Right.
They don't use a lot of jargon that might, you know, intimidate beginners.
(15:40):
It's, it's like a big, friendly party. It is, yeah.
Where everyone's invited to join the fun. I love that, that's a great way to put it.
And that welcoming atmosphere is, is a big part of what makes dogecoin so appealing.
You don't have to be a tech expert or a financial guru to, to, to feel like you belong. Right. Right. Right.
They have these great resources for beginners, you know. They explain things in a really simple way. Right.
(16:04):
They're always willing to answer questions and offer guidance. It's refreshing to see that kind of inclusivity. Yeah.
Especially in a space that can often feel, you know, elitist and exclusive. Absolutely.
It seems like that, that community-driven approach is, is just a key part of dogecoin's DNA.
It really is. Yeah.
And it's been a major factor in its growth and resilience, right?
(16:25):
Yeah.
Like when dogecoin faces challenges, the community seems to like rally together.
They do, they do.
To support it, whether it's through, you know, fundraising campaigns or promoting its use or just spreading positive vibes.
Yeah.
And so, you know, the kind of challenges, I mean, we've, we've talked about, you know, the potential for dogecoin to become, you know, a mainstream currency.
(16:47):
It's integration into the defy space. Even its potential for, for social good. Right.
But, but let's be realistic. Like what are some of the obstacles that could prevent dogecoin from, you know, reaching its full potential?
So I think one of the biggest challenges is that dogecoin needs to constantly evolve, to stay relevant. Right.
(17:08):
And so, the new currency landscape is constantly changing with new projects emerging all the time. Yeah.
Offering new features and functionalities. Right.
It's like a tech version of survival of the fittest.
It is. Yeah.
If dogecoin doesn't keep up with the pace of innovation. Right.
It could, it could become obsolete. Yeah.
Like that old flip phone, you have tucked away in a drawer somewhere.
Exactly. Yeah. Exactly. Yeah.
(17:29):
And, and another hurdle is the perception of dogecoin as a meme coin. Right.
You know, that playful image while part of its charm can also make it harder for people to take it seriously as a legitimate form of currency.
It's like trying to convince people that a toy poodle can also be a guard dog.
You know, it's, it's cute and cut a lead, but can it really protect you when it matters?
(17:52):
That's perfect. Yeah. That's a great analogy. Yeah.
But, you know, the dogecoin foundation, yeah.
They're working hard to change that perception by highlighting dogecoin's technical strengths. Right.
You know, it's growing adoption by businesses. Yeah.
It's potential for real world impact.
So it's, it's a branding challenge as much as anything else.
It is. It is. Yeah.
They need to convince people that, that dogecoin is is more than just a funny face on the internet.
(18:18):
Exactly. Yeah.
But let's be honest, changing public perceptions, a tough battle.
It's very difficult. Yeah.
There's still a lot of skepticism out there about, about cryptocurrency in general. Right.
And, and dogecoin, you know, with its meme origins, I mean, it faces an even steeper climb.
It does, yeah. You know, yeah.
But I, I think the key is to focus on education. Right.
(18:40):
And demonstrate, you know, the real world benefits of dogecoin.
Yeah.
Once people see how, how easy it is to use, how fast the transaction there, how low the fees are, you know, they might start to come around.
Absolutely.
It's about showing, not just telling. Yeah. Exactly. Yeah.
Let people experience the dogecoin difference for themselves. Right. Right.
(19:01):
And, and I think the, the passionate dogecoin community will play a huge role in that.
I think so too. You know, they're, they're already doing amazing work to, to spread the word and, and educate others about dogecoin.
You know, they're, they're like dogecoins biggest cheerleaders. They are.
And brand ambassadors. Yeah. Okay.
And that kind of, that kind of glass roots enthusiasm can be incredibly powerful.
(19:24):
It can, yeah. All right. And we're back ready to wrap up our dogecoin deep dive.
Yeah. It's been quite the journey.
Yeah. It really has. We started with those, those quirky origins.
And then we got into some surprisingly sophisticated technology.
And, and even, you know, pondered some of the philosophical implications of that radical transparency.
(19:47):
Yeah.
So, you know, we covered a lot of ground, you know, from those meme fueled beginnings to the potential for, for real world impact.
Absolutely. And of course, we talked about some of the challenges that, that dogecoin faces, you know, overcoming that image as a joke currency. Right.
And, and navigating the, the ever changing landscape of the crypto world. Right. And, and we can't forget that, that looming question of government regulation.
(20:15):
Yeah. Which could, could really be a game changer for, for the whole cryptocurrency space.
Yeah. It's like, it's like, we're on this roller coaster ride. And, and we don't know what twists and turns are coming next.
That's a great way to put it. But, but even with all the uncertainty, there's, there's this sense of excitement and possibility surrounding dogecoin.
Absolutely. It's like, it's like that scrappy underdog that everyone's rooting for. Even if, even if the odds are stacked against it.
(20:39):
And sometimes those underdogs, they end up surprising everyone.
So, so what do you think it would take for, for dogecoin to really break through? Yeah.
And become, you know, a mainstream currency. Well, I think, I think a few things need to happen.
Okay. First, the dogecoin foundation needs to continue to execute on its roadmap. Right.
(21:00):
You know, they're doing a lot of great work to, and put the technology, enhance security, make dogecoin more user friendly.
So, it's like, they're laying the groundwork for, for a more robust and sustainable ecosystem. Yeah, exactly.
And then they also need to keep finding ways to kind of broaden its appeal. Beyond just, you know, the hardcore crypto enthusiasts.
(21:23):
Right. You know, show the world that that dogecoin can be, you know, a practical and valuable tool for everyday transactions. Right.
So, more real world use cases, like we've seen with, you know, Tesla accepting dogecoin for some merchandise. Right. Exactly. Right.
And maybe even expanding that to accept dogecoin for cars, which, you know, has been hinted at.
(21:44):
Yeah. I mean, those kinds of high-profile adoptions could really, you know, move the needle. I'm absolutely, yeah.
It's about building legitimacy, I guess. Right.
And showing the world that dogecoin is more than just a speculative asset. Exactly.
But, but let's be honest, like, changing public perception is a tough battle. It's a very tough battle.
There's still a lot of skepticism out there. Yeah. About cryptocurrency in general. Right.
(22:08):
And, and dogecoin, you know, with its meme origins, it faces an even steeper climb. It does, yeah.
But I think, I think the key is to focus on education. Right.
And demonstrate the real world benefits of dogecoin. Yeah.
Once people see how easy it is to use, how fast the transactions are, how low the fees are, they might start to come around. Absolutely.
(22:32):
Yeah. It's about showing, not just telling. Right. Yeah.
Let people experience the dogecoin difference for themselves. Yeah. Exactly.
And I think the passionate dogecoin community will play a huge role in that. I think so too.
They're already doing amazing work to spread the word and educate others about dogecoin. Yeah.
You know, they're like dogecoins biggest cheerleaders. Yeah. Yeah. They are. And brand ambassadors. Exactly.
(22:56):
And that kind of, that kind of grassroots enthusiasm can be incredibly powerful. It can be. Yeah.
So, so looking ahead, what are some of the most exciting developments on the horizon for dogecoin?
Well, as we talked about in part two, I think dogecoin has, has huge potential in the decentralized finance space. Right.
(23:19):
With those fast transaction times and low fees, it makes it ideal for powering all sorts of defy applications.
So we could see, you know, dogecoin being used for things like decentralized lending and borrowing. Right.
And even creating new types of financial products. Exactly.
It's like taking the power of traditional finance and putting it in the hands of the people. Precisely. Yeah.
(23:43):
And beyond defy, I'm also curious to see how dogecoin evolves as a tool for social good. You know, we've already seen incredible examples of the community using dogecoin to support charitable causes and make a positive impact on the world.
It's, it's heartwarming to see how a cryptocurrency, which can sometimes feel very abstract and technical, can be used to connect with people on a human level. Right.
(24:10):
And make a real difference in their lives. It is. And I think that's a testament to the power of community and the shared values that underpin the dogecoin movement. Absolutely.
It's almost like dogecoin is is tapping into something deeper than just financial gain.
You know, it's about creating a more inclusive, equitable and fun world. I love that.
(24:32):
And maybe that's why despite all the skepticism and uncertainty, dogecoin continues to to capture the imagination of so many people. It's a reminder that sometimes the most unexpected things can have the greatest impact.
That's very true. Well, folks, that about wraps up our deep dive into the world of dogecoin. We we covered a lot of ground, explored some fascinating ideas and hopefully left you with more questions than answers.
(25:01):
It's been a blast. It has. And who knows what the future holds for dogecoin? Maybe it will become the global currency of the future. Maybe it'll revolutionize the financial system.
Yeah. Or maybe it'll simply continue to bring joy and laughter to the world once you put in your meme at a time.
Whatever happens, it's sure to be an interesting ride. And that's that's what makes dogecoin so captivating.
(25:26):
Yeah, you know, it's unpredictable. It's unconventional, and it reminds us that even in the world of finance, there's always room for a little bit of fun.
Well said. Thanks for joining us on this deep dive. Yeah, thanks everyone.
Until next time, keep on dogecoin.
[Music]
(00:22):
[Music]
(00:47):
All right, let's dive in. Today we're tackling something pretty unique I think. We're looking at Dogecoin,
Dogecoin, which you know for folks who haven't been following along, you know in the crypto space it's this cryptocurrency that started as a joke.
But now it's got you know a multi-billion dollar market cap. So we've got articles you know kind of tracing its history, stuff about Elon Musk. He's been very public about his support of Dogecoin.
(01:16):
And even some of the technical breakdowns from the Dogecoin website itself. Yeah, yeah.
So we're going to try to answer the big questions. You know how did this joke become serious money?
What is Elon Musk's real role in all this? Can you actually buy things with Dogecoin and should you?
And you know the big question that I think everybody wants to know is this whole thing just a bubble.
(01:39):
Right, well what's fascinating to me is like it really challenges our idea of value. So like traditional finance, right?
Scarcity is king. It's like you know limited edition collectibles that kind of thing. But Dogecoin is literally unlimited in supply.
Right. So it throws that whole concept out the window. Yeah, it's a good point.
So the fact that it's thriving despite going against that traditional financial wisdom I think that's really intriguing.
(02:04):
Right, it's like the more there is the more people want it or the more it's worth or right. I don't know it's a it's very strange.
It's bizarre. Yeah. Yeah. So how does this whole thing get started? I know it started as a joke, right?
It did. It did. It started as a complete joke back in 2013. There are these two software engineers, Billy Marcus and Jackson Palmer.
(02:27):
And they you know saw this this Bitcoin height that was starting to bubble up. Right. They just thought it was kind of ridiculous. Right.
So they created Dogecoin is this way to kind of satirize the whole thing. Okay. They never they never actually thought that it would become you know a serious investment.
It was just to kind of poke fun at the whole craze. And they slap a sheba inu dog on it and call it Dogecoin and it becomes a multi billion dollar asset.
(02:51):
Yeah. It's really kind of amazing. I know wild.
I guess I guess part of it though is just how recognizable that Doge meme is right. Like people see it. They kind of get it immediately.
Oh, absolutely. It's totally mean fact. Right. If the huge part of its identity. Right.
It's approachable. Right. It's not as intimidating as something like Bitcoin. Right.
Which you know can feel very serious and very complex. Yeah. Bitcoin feels very serious. Right. Dogecoin feels very unserious, very silly.
(03:19):
Silly. Yeah. Exactly. But then you know to your point earlier about it challenging the idea of value like I s valuable. Right. Yeah.
It's very strange. And I think the community that grew around Dogecoin is really another key to its rise. Okay.
I mean they've been incredibly active. You know not just in in online forums, but like using DOGE for real world causes. Yeah.
(03:44):
Like they funded clean water wells in Kenya. They helped the Jamaican Bob sled team get to the Olympics. Oh wow.
They even use it for scientific research. This project called DOGEcoin folding at home. Hold on. Dogecoin folding at home.
Like I know people use it to tip on Reddit. Yeah. Some places will accept it as payment, but like funding scientific research.
(04:06):
That's a whole other level. It is. It is. So what is what is DOGEcoin folding at home? Like what's actually happening there?
So it basically taps into the processing power of people's computers. Okay. So it's kind of like a decentralized supercomputer. Okay.
Where you know people are donating their spare computing power to help scientists with these complex tasks. Right.
Like protein folding research, which has implications for understanding diseases, developing new drugs. No. Wow.
(04:33):
And they get rewarded with DOGEcoin for their contributions. Interesting. Yeah. So just a really fascinating example of how this joke currency is being used to have a real world.
Yeah. That's really impressive. So how does DOGEcoin actually work like technically? I mean, I know it uses blockchain technology, but is it similar to Bitcoin like under the hood?
Yeah. Or there's some big differences. Yeah. So there's similarities and there's some key differences. Okay.
(04:57):
So like Bitcoin, DOGEcoin relies on a blockchain, which is that public ledger that records every transaction. Right.
And it uses this proof of work. List them. Okay. So miners are solving complex mathematical problems to verify transactions.
And then they can verify transactions, add them to the blockchain. Right. But where DOGEcoin diverges is its algorithm. Okay.
(05:18):
So it uses script, which was initially designed to be more resistant to specialized mining hardware. Okay.
That was kind of dominating Bitcoin mining at the time. Okay. So the idea was to keep DOGEcoin mining more accessible to everyday users.
Kind of going back to that whole community driven spirit. So they're essentially trying to like level the playing field a bit. Yeah.
(05:39):
Right. Make it harder for big mining operations to just come in and like dominate DOGEcoin. Right. Right.
But how does that, how does that choice of algorithm affect, you know, things like energy consumption? Right.
Because that's one of the big criticisms of Bitcoin is, you know, the massive energy footprint. Yeah. That's a crucial point. Okay.
And actually script is more energy intensive per transaction than Bitcoin's algorithm. Interesting.
(06:05):
However, because the overall value and transaction volume of DOGEcoin are significantly lower than Bitcoin, its total energy consumption is much less.
Okay. So it's kind of a trade off there. It is. Yeah. There's a trade off. And it's something that, you know, the DOGEcoin foundation, which we can talk about later, they're actively exploring that as they work on improving the technology.
(06:27):
Okay. So they're aware of those concerns. But I guess the other big difference, right, with with Bitcoin is, you know, we talked about it earlier, DOGEcoin's unlimited supply, which again, it's just fascinating to me because it goes against what we normally think of as valuable, right?
Right. Wouldn't that potentially lead to inflation and devalue the currency over time?
(06:50):
That's the big question. Yeah. And it's actually a major debate within the DOGEcoin community.
Okay. You know, there are valid arguments on both sides. Yeah. Some people think that unlimited supply makes it more accessible for micro transactions in everyday use.
Okay. Kind of like a digital version of loose change. Yeah. Right. Yeah. But then others, they worry about those inflationary risks. Right.
(07:13):
And whether it can hold its value long term. Yeah.
So, you know, it's a question that probably won't have a clear answer until we see how things play out. It's like a giant economic experiment in real time.
It really is. Yeah.
But how does that, I mean, how does that unlimited supply then play into like the price?
Because I know DOGEcoin has been notoriously volatile. I mean, you know, prices will soar and plummet sometimes in the same day. It's crazy.
(07:41):
And that volatility is partly due to that unlimited supply. But it's also, I mean, let's be honest, it's also heavily influenced by market trends and the Elon Musk factor.
The DOGE father himself. Yeah. The DOGE father. Yeah. I mean, there's no denying that his tweets about DOGEcoin can, you know, move the market.
Oh, absolutely.
(08:02):
But isn't relying on a single influencer, even someone as powerful as Elon Musk, kind of risky.
It's a huge risk. Yeah. It's a huge risk. Like, what if he gets bored with DOGEcoin? Right.
And moves on to something else. You know, it's, it's, it's, it's, it's, you're right. It's a major vulnerability for DOGEcoin.
Yeah. And I think while his endorsements have, have brought attention, even some legitimacy. Yeah. To DOGEcoin, it's created this dependence. Right.
(08:28):
That makes it really susceptible to his whims. Yeah. So, you know, the DOGEcoin foundation, which we've mentioned, yeah, they recognize this.
Okay. And they're really actively working to kind of broaden its appeal, diversify its use cases.
Beyond just being Elon Musk's favorite crypto current. Yeah. Exactly. Yeah.
Which makes sense. I mean, if they want it to, you know, reach its full potential that needs to have a more sustainable foundation. Right. Absolutely.
(08:52):
So speaking of the DOGEcoin foundation, like, what role do they actually play in all of this? Yeah.
So the DOGEcoin foundation, they're basically the guiding force behind DOGEcoin's development. Okay. So there's this nonprofit organization. They were revived in 2021. Okay.
And their mission is basically to support the core software development, protect the DOGEcoin trademark and just promote its use and adoption. Okay.
(09:18):
So, you know, they have this roadmap for the future that includes things like making DOGEcoin more user-friendly, improving its security, even exploring potential integrations with other blockchain projects.
So they're not just like sitting back and watching this whole meme magic happen. Right. They're actually, yeah, they're working to try to make it a more robust and sustainable cryptocurrency. Yeah.
(09:39):
It's interesting because they have this really delicate balance to strike. Okay. You know, they want to improve the technology, make it more viable for widespread use. Right.
But they also want to maintain that playful community-driven spirit that makes DOGEcoin so unique. Right. Yeah. It's a tough line to walk. It is. It is.
(10:00):
You know, because, you know, you take away the playfulness. It becomes just another, you know, cryptocurrency. Right. But, you know, if you don't improve the technology, then it's never going to be taken seriously. Right. Exactly. Yeah.
It's really interesting. And, you know, it's almost like they're trying to tame a wild animal without taking away its spirit. Right. And speaking of wild animals, I mean, there's another aspect of DOGEcoin that can feel a bit untamed. And it's this transparent blockchain. Right.
(10:27):
Anyone can see every single transaction that's ever taken place. We touched on that a little bit earlier. Yeah. It raises some interesting questions about privacy.
It does. But before we dive into that rabbit hole, maybe let's take a closer look at like how that radical transparency actually works. Right.
Like, what can someone actually see on the DOGEcoin blockchain? Yeah. What are the implications for users? That's a great place to kind of pick up. It's where things get really interesting. Yeah. I think so. Yeah.
(10:55):
All right. Well, let's take a break and we'll come back and, uh, and we'll unpack that a bit more sounds good. Okay. So about that blockchain transparency. Yeah. It's, it's kind of like having a public record of every DOGEcoin transaction ever made. Okay.
But it's, it's not as simple as just like looking up someone's name and seeing their entire financial history. Okay. So it's not like a DOGEcoin version of big brother watching my every move. Exactly. Yeah.
(11:23):
But what can someone actually see on the blockchain? Like can they can they snoop on people's, you know, DOGEcoin wallets?
So not exactly. You can't see people's names or like personal details directly. Okay. But what you can see are wallet addresses. The amount of DOGEcoin transferred between them, the time and date of each transaction.
(11:44):
So it's like the financial breadcrums. It is. Yeah. It's like the digital trail. Okay. But you wouldn't necessarily know who's behind those wallets. Right. You wouldn't immediately know.
Unless you had other pieces of information to kind of connect the dots. Exactly. So it's like a puzzle with missing pieces. It is. Yeah.
You have, you have the transaction data, but you need more information to actually identify the individuals involved. Right.
(12:05):
But what if, what if someone is really determined to like deanonimize those transactions? Like is it possible to kind of crack the code?
It's possible. Okay. But it requires a lot of effort, sophisticated techniques. Okay. It might involve like tracking those breadcrums across multiple transactions, thinking for patterns.
(12:27):
Maybe trying to link those wallet addresses to real world identities through other online activities. So you're like a digital detective. Yeah. Yeah.
Trying to to solve a case with limited clues. So it's not something that, you know, the average person could easily do. Right.
But it's, it's not impossible for someone with, you know, the right skills and resources. Right. Exactly.
(12:49):
So that's something to keep in mind if you, if you value your privacy. Yes.
But you know, what about the positive side of this transparency? I mean, we've, we've talked about how it can increase accountability. Right.
Like if, if every transaction is recorded on this blockchain. Yeah.
It's, it's a lot harder for anyone to kind of engage in fraudulent or unethical behavior. Right. Yeah. It's like having this built in audit trail. Right.
(13:12):
Makes it more difficult to kind of cook the books or hide, you know, shady dealings. Right. Right.
And that can create a greater sense of trust within the system. Yeah.
Which is, which is essential for any currency. Right.
Whether it's, you know, traditional or digital. Yeah. No, I see what you mean. Yeah.
Like if you, if you know that everyone's transactions are kind of out in the open, you're, you're more likely to feel, you know, profit using that currency.
(13:38):
Absolutely. Yeah. But there's also the question of how this transparency then affects, you know, the dogecoin ecosystem as a whole. Yeah.
Does it, does it help or hurt its development and adoption? That's a great question. And I think it does both. Okay.
So on the one hand, that openness can attract developers who are really passionate about open source projects. Okay.
(14:01):
They can see exactly how dogecoin works. Right. They can contribute to its development. Yeah. And potentially even build new applications and tools on top of it.
So it's like a giant sandbox for, for, you know, tech-sati folks who want to play an experiment with, with, with a real world cryptocurrency.
Absolutely. But, but on the flip side, doesn't that transparency also make dogecoin more vulnerable than to, to hackers and scammers? Yeah. It's a valid concern. Right.
(14:29):
Like they, they can see the code, they can analyze the transactions and potentially find, you know, exploits. Right. It's like leaving the blueprints to your house out in the open for anyone to see, including those who might want to break in. Right.
But the dogecoin foundation is, is very aware of those security risks. Okay.
They're constantly working to improve the code, patch vulnerabilities and just make the network more resilient to attacks. So it's a bit of an arms race.
(14:55):
It is, yeah. We're trying to stay one step ahead of the bad guys. Exactly.
Making the system as secure as possible. Right.
But there's, there's another aspect of, of transparency that I think is worth, worth highlighting. Yeah.
That's the transparency of the dogecoin community itself. Oh, absolutely.
I mean, the dogecoin community is incredibly open and welcoming to newcomers. Yeah.
(15:17):
It's, it's one of the most vibrant and supportive communities I've ever encountered in the crypto space.
I've heard that people talk about how, how helpful and encouraging the dogecoin community is.
Even to folks who are like totally new to cryptocurrency, they don't, they don't gatekeep. Right.
They don't use a lot of jargon that might, you know, intimidate beginners.
(15:40):
It's, it's like a big, friendly party. It is, yeah.
Where everyone's invited to join the fun. I love that, that's a great way to put it.
And that welcoming atmosphere is, is a big part of what makes dogecoin so appealing.
You don't have to be a tech expert or a financial guru to, to, to feel like you belong. Right. Right. Right.
They have these great resources for beginners, you know. They explain things in a really simple way. Right.
(16:04):
They're always willing to answer questions and offer guidance. It's refreshing to see that kind of inclusivity. Yeah.
Especially in a space that can often feel, you know, elitist and exclusive. Absolutely.
It seems like that, that community-driven approach is, is just a key part of dogecoin's DNA.
It really is. Yeah.
And it's been a major factor in its growth and resilience, right?
(16:25):
Yeah.
Like when dogecoin faces challenges, the community seems to like rally together.
They do, they do.
To support it, whether it's through, you know, fundraising campaigns or promoting its use or just spreading positive vibes.
Yeah.
And so, you know, the kind of challenges, I mean, we've, we've talked about, you know, the potential for dogecoin to become, you know, a mainstream currency.
(16:47):
It's integration into the defy space. Even its potential for, for social good. Right.
But, but let's be realistic. Like what are some of the obstacles that could prevent dogecoin from, you know, reaching its full potential?
So I think one of the biggest challenges is that dogecoin needs to constantly evolve, to stay relevant. Right.
(17:08):
And so, the new currency landscape is constantly changing with new projects emerging all the time. Yeah.
Offering new features and functionalities. Right.
It's like a tech version of survival of the fittest.
It is. Yeah.
If dogecoin doesn't keep up with the pace of innovation. Right.
It could, it could become obsolete. Yeah.
Like that old flip phone, you have tucked away in a drawer somewhere.
Exactly. Yeah. Exactly. Yeah.
(17:29):
And, and another hurdle is the perception of dogecoin as a meme coin. Right.
You know, that playful image while part of its charm can also make it harder for people to take it seriously as a legitimate form of currency.
It's like trying to convince people that a toy poodle can also be a guard dog.
You know, it's, it's cute and cut a lead, but can it really protect you when it matters?
(17:52):
That's perfect. Yeah. That's a great analogy. Yeah.
But, you know, the dogecoin foundation, yeah.
They're working hard to change that perception by highlighting dogecoin's technical strengths. Right.
You know, it's growing adoption by businesses. Yeah.
It's potential for real world impact.
So it's, it's a branding challenge as much as anything else.
It is. It is. Yeah.
They need to convince people that, that dogecoin is is more than just a funny face on the internet.
(18:18):
Exactly. Yeah.
But let's be honest, changing public perceptions, a tough battle.
It's very difficult. Yeah.
There's still a lot of skepticism out there about, about cryptocurrency in general. Right.
And, and dogecoin, you know, with its meme origins, I mean, it faces an even steeper climb.
It does, yeah. You know, yeah.
But I, I think the key is to focus on education. Right.
(18:40):
And demonstrate, you know, the real world benefits of dogecoin.
Yeah.
Once people see how, how easy it is to use, how fast the transaction there, how low the fees are, you know, they might start to come around.
Absolutely.
It's about showing, not just telling. Yeah. Exactly. Yeah.
Let people experience the dogecoin difference for themselves. Right. Right.
(19:01):
And, and I think the, the passionate dogecoin community will play a huge role in that.
I think so too. You know, they're, they're already doing amazing work to, to spread the word and, and educate others about dogecoin.
You know, they're, they're like dogecoins biggest cheerleaders. They are.
And brand ambassadors. Yeah. Okay.
And that kind of, that kind of glass roots enthusiasm can be incredibly powerful.
(19:24):
It can, yeah. All right. And we're back ready to wrap up our dogecoin deep dive.
Yeah. It's been quite the journey.
Yeah. It really has. We started with those, those quirky origins.
And then we got into some surprisingly sophisticated technology.
And, and even, you know, pondered some of the philosophical implications of that radical transparency.
(19:47):
Yeah.
So, you know, we covered a lot of ground, you know, from those meme fueled beginnings to the potential for, for real world impact.
Absolutely. And of course, we talked about some of the challenges that, that dogecoin faces, you know, overcoming that image as a joke currency. Right.
And, and navigating the, the ever changing landscape of the crypto world. Right. And, and we can't forget that, that looming question of government regulation.
(20:15):
Yeah. Which could, could really be a game changer for, for the whole cryptocurrency space.
Yeah. It's like, it's like, we're on this roller coaster ride. And, and we don't know what twists and turns are coming next.
That's a great way to put it. But, but even with all the uncertainty, there's, there's this sense of excitement and possibility surrounding dogecoin.
Absolutely. It's like, it's like that scrappy underdog that everyone's rooting for. Even if, even if the odds are stacked against it.
(20:39):
And sometimes those underdogs, they end up surprising everyone.
So, so what do you think it would take for, for dogecoin to really break through? Yeah.
And become, you know, a mainstream currency. Well, I think, I think a few things need to happen.
Okay. First, the dogecoin foundation needs to continue to execute on its roadmap. Right.
(21:00):
You know, they're doing a lot of great work to, and put the technology, enhance security, make dogecoin more user friendly.
So, it's like, they're laying the groundwork for, for a more robust and sustainable ecosystem. Yeah, exactly.
And then they also need to keep finding ways to kind of broaden its appeal. Beyond just, you know, the hardcore crypto enthusiasts.
(21:23):
Right. You know, show the world that that dogecoin can be, you know, a practical and valuable tool for everyday transactions. Right.
So, more real world use cases, like we've seen with, you know, Tesla accepting dogecoin for some merchandise. Right. Exactly. Right.
And maybe even expanding that to accept dogecoin for cars, which, you know, has been hinted at.
(21:44):
Yeah. I mean, those kinds of high-profile adoptions could really, you know, move the needle. I'm absolutely, yeah.
It's about building legitimacy, I guess. Right.
And showing the world that dogecoin is more than just a speculative asset. Exactly.
But, but let's be honest, like, changing public perception is a tough battle. It's a very tough battle.
There's still a lot of skepticism out there. Yeah. About cryptocurrency in general. Right.
(22:08):
And, and dogecoin, you know, with its meme origins, it faces an even steeper climb. It does, yeah.
But I think, I think the key is to focus on education. Right.
And demonstrate the real world benefits of dogecoin. Yeah.
Once people see how easy it is to use, how fast the transactions are, how low the fees are, they might start to come around. Absolutely.
(22:32):
Yeah. It's about showing, not just telling. Right. Yeah.
Let people experience the dogecoin difference for themselves. Yeah. Exactly.
And I think the passionate dogecoin community will play a huge role in that. I think so too.
They're already doing amazing work to spread the word and educate others about dogecoin. Yeah.
You know, they're like dogecoins biggest cheerleaders. Yeah. Yeah. They are. And brand ambassadors. Exactly.
(22:56):
And that kind of, that kind of grassroots enthusiasm can be incredibly powerful. It can be. Yeah.
So, so looking ahead, what are some of the most exciting developments on the horizon for dogecoin?
Well, as we talked about in part two, I think dogecoin has, has huge potential in the decentralized finance space. Right.
(23:19):
With those fast transaction times and low fees, it makes it ideal for powering all sorts of defy applications.
So we could see, you know, dogecoin being used for things like decentralized lending and borrowing. Right.
And even creating new types of financial products. Exactly.
It's like taking the power of traditional finance and putting it in the hands of the people. Precisely. Yeah.
(23:43):
And beyond defy, I'm also curious to see how dogecoin evolves as a tool for social good. You know, we've already seen incredible examples of the community using dogecoin to support charitable causes and make a positive impact on the world.
It's, it's heartwarming to see how a cryptocurrency, which can sometimes feel very abstract and technical, can be used to connect with people on a human level. Right.
(24:10):
And make a real difference in their lives. It is. And I think that's a testament to the power of community and the shared values that underpin the dogecoin movement. Absolutely.
It's almost like dogecoin is is tapping into something deeper than just financial gain.
You know, it's about creating a more inclusive, equitable and fun world. I love that.
(24:32):
And maybe that's why despite all the skepticism and uncertainty, dogecoin continues to to capture the imagination of so many people. It's a reminder that sometimes the most unexpected things can have the greatest impact.
That's very true. Well, folks, that about wraps up our deep dive into the world of dogecoin. We we covered a lot of ground, explored some fascinating ideas and hopefully left you with more questions than answers.
(25:01):
It's been a blast. It has. And who knows what the future holds for dogecoin? Maybe it will become the global currency of the future. Maybe it'll revolutionize the financial system.
Yeah. Or maybe it'll simply continue to bring joy and laughter to the world once you put in your meme at a time.
Whatever happens, it's sure to be an interesting ride. And that's that's what makes dogecoin so captivating.
(25:26):
Yeah, you know, it's unpredictable. It's unconventional, and it reminds us that even in the world of finance, there's always room for a little bit of fun.
Well said. Thanks for joining us on this deep dive. Yeah, thanks everyone.
Until next time, keep on dogecoin.
Popular Podcasts
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.
Therapy Gecko
An unlicensed lizard psychologist travels the universe talking to strangers about absolutely nothing. TO CALL THE GECKO: follow me on https://www.twitch.tv/lyleforever to get a notification for when I am taking calls. I am usually live Mondays, Wednesdays, and Fridays but lately a lot of other times too. I am a gecko.
The Joe Rogan Experience
The official podcast of comedian Joe Rogan.