It has been debated for some time whether blockchain(which created the idea of Web3 – a new Internet that would be more anonymous and free thanks to this technology), and with it, Bitcoin, is truly decentralized, or managed by a small group of individuals and companies.
Sometimes it seems that Elon Musk is playing with Dogecoin cryptocurrency, which is understandable – it started as a joke.
He recently discovered why he still loves this digital money and tried to explain the complicated relationship with cryptocurrency.
Although it started as a joke, Doge cryptocurrency was on the list of the most talked-about eight years later.
It’s a concept that doesn’t require much thought – users buy currency, like any other, and keep it until something unusual happens, like Elon Musk’s tweets.
When Bitcoin appeared, many were fascinated by the possibilities offered by the new technology – cryptocurrency-enabled transactions with low fees and freedom that is not possible with traditional currencies.
Because Bitcoin is open-source, many began to copy it, and new currencies emerged, such as Litecoin and Peercoin.
Dogecoin came as a witty response to a new trend and was made in December 2013, by software engineers Billy Marcus and Jackson Palmer.
It is a copy of the Litecoin currency, with a picture of a Shiba Inu dog and metaphors related to a trip to the moon.
He quickly gained a significant number of admirers, and he mostly attracted those who liked the idea of cryptocurrencies but wanted to ridicule Bitcoin.
One of the creators of the Doge currency recently explained on Twitter that he is not a “big fan of Bitcoin”, because it serves to create new rich people.
He added that his goal is to build, make money and have fun, not to support cryptocurrencies that give power to some new giants.
It has been debated for some time whether blockchain(which created the idea of Web3 – a new Internet that would be more anonymous and free thanks to this technology), and with it, Bitcoin, is truly decentralized, or managed by a small group of individuals and companies.
Musk is at the forefront of that debate and was recently joined by Jack Dorsey, executive director of the Twitter platform, who pointed out that Web3 will not be able to escape the initiatives of those who have shaped online freedoms so far.
Musk reacted to his tweet and hurried to add that this is the reason why he stands for Dogecoin because he himself doubts others.
And it’s not the only one – according to a recent study by the US National Bureau of Economic Research, the fear that blockchain and Bitcoin are not decentralized is not far from the truth, since it was concluded that the first ten thousand Bitcoin owners hold five million digital coins, which is 232 billion dollars.
Unlike large cryptocurrencies, Dogecoin is a “renegade”.
One of the biggest buyers is Musk, and therefore it has the greatest impact on the value and the future – Tesla invested 1.5 billion dollars in Bitcoin currency in 2021.
Many warn him that this is not a serious way to invest in anything, but he continues to fight against the richest, to whom he himself belongs.
It remains to be seen how much tweets will affect the fate of cryptocurrencies, but also Web3 “next internet”, which promises an online utopia, thanks to blockchain and decentralization.