Someone Owns 27% of All Doge Coin in the World over 1B Dollars
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If this was a long-term storage wallet, it would make sense for it to have steady deposits and few withdrawals (in big chunks, going into other "hot" wallets held by the exchange, from which withdrawals to individual customer withdrawals are sent).
Assuming they're solvent, the exchange has to hold DOGE backing up all their customers balances. Since many customers never withdraw into their own wallets -- especially for a short-term trading coin like this -- that balance managed by the exchange will be substantial and grow during times of high trading.
I can only assume that they didn't read and learn enough about the subject before throwing money at it...
It could go down of course, it probably will but your statement is wrong on both accounts
Also, I imagine I got a ton of Dogecoins from speculation, mining, whatever. I just to go to my regular exchange and try to withdraw a million. Probably need to do a lot of extra KYC paperwork, but OK. But then, how do I convince the authorities that this is not some laundered crime money?
You can't tell that transfers into an address are done with the consent of the address owner at all, or that they represent "buying". The only activity that is provably initiated by the address owner are the transfers out, and none of those are meme amounts. In fact they're all to a single wallet. Probably the exchange's hot wallet.
The innovation of crypto in this space is that it makes the Ponzi scheme genuinely fair. Unlike MMM, there is no founder at the top who can run off with all the funds at once.
The scheme lasts until the last fool is found, the losses are distributed amongst the late arrivals (or early adopters with diamond hands) and the gains are distributed amongst the early adopters who sold high. There is nobody to go after as a criminal. Best of all, the "company" survives despite losing its value, and the cycle can repeat again in a few years. If you didn't get out this time, you can hope for another round of the game later on in which you can unload your position.
Seems like the main advantage for tipping currency is small transaction fees -- i.e. you use Doge instead of BTC because with BTC, the current median fee is around $8, so it makes no sense to send somebody a $1 tip. But with Doge, it's much lower, like 4 cents. So it seems a lot better.
Except that the only reason fees are so low is that network usage is so low. By design, with 1MB blocks generated every minute, the doge network can only process something in the ballpark of 30-40 transactions per second (depending on transaction size). Currently it's not anywhere near that level of load. But as load approaches or exceeds that level, it will cost increasingly more to get your transaction included by a miner in the next block.
That's exactly why bitcoin fees are high and the only reason Doge isn't seeing the same problem is 1. it isn't that big yet, and 2. it has a faster block rate (every minute instead of every ten minutes) so it pushes the problem a bit further back, but still doesn't solve it. The more people use the coin, the worse using it gets.
If Doge was actually adopted widely for tipping -- which it isn't really right now -- it would see a huge increase in transaction volume and quickly become unsuitable for that purpose due to the increase in fees.
It's much more honest to simply tell people that it's going up and you can potentially get rich quick by buying low and selling to somebody else before the bubble pops again. Pretending Doge is actually going to be widely adopted as a medium of exchange is just sad.
What do you mean? Pornhub accepts like 20 different cryptocurrencies, doge just happens to be on that list. Hardly evidence of adoption.