The price of bitcoin doubled again from $ 19,000 in December 2020 to just over $ 48,000 earlier this week, and other cryptocurrencies have benefited from that, perhaps the most unusual of which is Dogecoin. Which was heavily promoted on Twitter over the past two weeks by Tesla CEO Elon Musk.

In a report published by the American "Foreign Policy" magazine, writer David Gerrard said that in the early years of 2010, so-called "alternative digital currencies" created by Bitcoin fans to get rich for free by copying a Bitcoin program and changing some details appeared, To obtain a new currency that can be traded against Bitcoin, and "Dogecoin" was a slightly modified version of "Litecoin", which in turn was a modified version of Bitcoin, and "Dogecoin" began trading in December 2013, at the height of the first bubble For Bitcoin.

Dogecoin was a slightly modified version of Litecoin which was in turn a modified version of Bitcoin (Reuters)

What is Dogecoin?

Dogecoin was initially a joke, as it took its name from the internet meme called "Dog", and its symbol is a picture of a "Shiba Inu" dog, and the purpose of Dogecoin was to enjoy a cryptocurrency cheap enough to add changes to it. , And its value was only a fraction of a cent.

Dogecoin fans gathered in a forum on the platform "Reddit", and were sending each other coins in exchange for entertaining comments, and the forum contributed to charitable work, as he managed to collect nearly 30 thousand dollars from Dogecoin in January 2014 to send a Jamaican ski team to 2014 Winter Olympics.

Doge 4 Water raised $ 32,000 to provide clean water in Kenya. It achieved this only by designing its magic money online and selling it for bitcoins, then selling bitcoins for the dollar.

But even the cryptocurrency that was intended for joke remains a currency at the end of the day, so Dogecoin traders started dreaming of the free wealth that was waiting for them, and then the bargains joined them.

Alex Green established a cryptocurrency exchange in the United Kingdom called "Moolah", to trade these currencies as well as other cryptocurrencies.

Most of the Dogecoin forum users on Reddit gave tips of one coin from Dogecoin, but Green gave tips of thousands of dollars, and began selling shares of his “boss” on the forum, and Green threatened to sue the original Dogecoin founders for harassing him and questioning his use of the forum in this way.

The Mullah Stock Exchange closed in October 2014, and Green disappeared with the money. It was later revealed that he was, in fact, Ryan Kennedy, a fraudster who had a long history of establishing fraudulent start-ups that collect money and then disappear, as it turned out that this fraudster was convicted in May. / May 2016, with 3 counts of rape and 11 years in prison.

The remaining Dogecoin community has recovered even though the founders have long since disappeared, and they have continued to trade their coins without the world noticing them.

Work on the Dogecoin symbol has also stopped, and no one is developing this program anymore, and in the cryptocurrency exchange markets, the Dogecoin currency remains just another alternative digital currency, and a token currency that is almost worthless, as gamblers and day traders can replace it with other cryptocurrencies in the hope of reaping A few cents.

Dogecoin fans gathered in a forum on the "Reddit" platform and were sending each other coins in exchange for entertaining comments (Reuters)

From a joke to a coin

The writer mentioned that there is no benefit from cryptocurrencies except for trading, in a weak trading pattern with the absence of all regulatory bodies, which makes manipulation and price inflation a widespread practice.

The recent rise in Bitcoin prices - which Bitcoin prices had witnessed for a long time - was not prominent in the level of normal retail trading volume, until the numbers became high enough to attract newspaper interest and make people think that something real is happening there.

When the Wall Street Bets Forum on Reddit lifted GameStop shares to an all-time high in mid-January, the cryptocurrency pumps found the audience they had always dreamed of. Individuals who do not know how the market works but are willing to pay their money thinking that by doing so they can strike a blow against the big players and enjoy it.

On January 28, a Twitter user under the name "WSBChairman" who claimed that he was not affiliated with the "Wall Street Bits" forum announced his decision to inject Dogecoin, and then the forum likewise followed, which raised the price of Dogecoin, After that, Elon Musk posted a tweet for a fake magazine cover photo under the name "Doug" (instead of "Vogue"). Dogecoin's stock rose dramatically, but it declined again the next day, but with the continued attention that Musk paid to it during the following week The currency price continued to rise after it almost completely disappeared from the scene.

Reddit users get “karma” points according to the vote on their posts and comments, and these points had no value, but in 2020 Reddit decided to try “community coins” which are “karma” points in the form of currencies that work on Ethereum blockchain, possibly for real money.

Before that, in 2019, a small version of community coins was introduced to the ethtrader forum for trading Ethereum cryptocurrencies, and a disaster ensued everyone expected.

Coins - called "donuts" - influenced the forum's management, added more importance to users' voting in polls, companies spread fake ads to harvest coins, and moderators changed the rules to get more coins for themselves.

And on February 8, one of the original Dogecoin founders, Billy Marcus, published an open letter to the Dogecoin forum on Reddit, urging members of the currency community to return to their fun and stop making Dogecoin centering around money.

"Keep learning as much as you can about how cryptocurrencies work and how these markets work, and never risk more than you can afford to spend, stay alert and aware."

Cryptocurrencies have no real use, and their promoters always claim that they will solve a number of different problems in fields such as journalism and dentistry, but they always end up in a new currency with little value.

The only way to make money from cryptocurrencies - the writer says - is to sell them to someone else for more money, who in turn sells them for more, forming a series of fictitious and fraudulent transactions.