Douchebags are typically smug, and exude self-confidence. However, rarely are they actually self-confident, but are usually more likely lacking self-confidence. There are the rare breeds that are so deluded that they believe they are cool, when no one else thinks so. In this case, they are not lacking self-confidence, but are just deluded.
From popular culture:
John Denver (as seen on Southpark)
John Denver is the biggest douchebag in the universe.
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