Riding the Cryptocurrency Wave

Now-popular cryptocurrency, Dogecoin, started as a joke. Or at least that’s what its creator, Bill Markus, told us about what is now a $50-billion favorite among “HODLers” — a punchy term for cryptocurrency investors and enthusiasts alike.

- Jordan French

For the uninitiated, in 2008, a Japanese kindergarten teacher, Atsuko Satō, adopted a Shiba Inu and named her Kabosu. In 2010, Sato took a picture of Kabosu. Little did she know her picture would not only create an internet meme — but an iconic piece of cryptocurrency. Dubbed “Doge,” the exploitable face of Kabosu has ruled the internet for years.

On the other side of the world in late 2013, IBM employee Bill Markus created what is known as Dogecoin — quite literally — as a joke. At first a “meme” of the now-famous Kabosu dog fixed atop a coin, the cryptocurrency is now worth more than $50 billion.

Much Doge

So, why did Dogecoin take off?

Dogecoin is popular among “HODLers,” a punchy term for cryptocurrency enthusiasts and investors alike.

HODL stands for “hold on for dear life,” and it’s a reference to investors riding out a cryptocurrency crash without selling what they have. Of course, cryptocurrency itself isn’t new. Bitcoin, one of the first decentralized cryptocurrencies, has been around since 2009. In internet years, it might as well be as old as CocaCola and has support from many sides.

In simple terms, cryptocurrencies use digital files for currency, and use digital signatures for secure transactions.

One reason they are popular is because no government or person controls them. Instead, a list of transactions, known as a digital ledger, governed by “consensus” from stakeholders, controls them. Best explained visually: The blockchain on which cryptocurrencies are built and traded is much like a spreadsheet with shared access — which cannot change unless a majority agrees to a change. In theory, with large enough numbers, it’s immune to tampering.