The Dogecoin Joke Is Turning Serious in Latest Crypto Binge
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The way people gamble with GME, dogecoin, etc really disturbs me. I see people putting entire paychecks into <hype vehicle du jour> who really can't afford to do so. And the language I see around dogecoin atm really disgusts me. There was a reddit thread recently... this one:
https://www.reddit.com/r/dogecoin/comments/n2lp6w/im_crying_...
I find it really appropriate that he's thanking everyone because in essence he's thanking all the people who funded his gofundme, just in a very roundabout way.
Furthermore, you have posts to the effect of "Please please don't sell at $1.00" that get super close to being self-aware. Some of these people know the only people who are buying doge are those who plan to sell it later, and the only people they will be able to sell to are people who then plan to sell it later too... and so on. It's a massive game of chicken.
I don't know. I consider myself to be somewhat financially literate and watching people throw away what little they have hurts to watch, since I've worked in equities long enough to see people lose more than they thought they could possibly lose.
Like here: https://www.cnbc.com/2018/02/05/xiv-exchange-traded-security...
when the whole inverse-volatility trade blew up and bankrupted several inverse-vol ETFs. Our trade floor was like death that morning as a large % of the people there had just lost huge chunks of their personal portfolios.
Maybe some people are buying responsibly small amounts of doge, as a joke. But I'm just really worried.
CEO literally said in their 10-K that if they're not at 90% capacity within 4 months, and borrow a lot of money. Then they can't maintain minimal liquidity requirements and must declare bankruptcy.
Everyone will loose their money.
Yet FOMO!
Without cashflow or consumable utility only memes designed to convince new buyers to buy from earlier buyers remain. Turns out many people prefer the doge meme to the bitcoin meme, and rather than network effects both only have linear popularity as speculative memecoins.
One thing people discount about crypto is the marketability of coins. Most try to market through a whitepaper and jargon. Dogecoin being a “joke” makes it friendly and approachable in a way just about every other crypto is not.
In one of the other posts, why are the very very early people now 'cashing out' their 11k+ DOGE. Perhaps they know that as soon as it reaches above $1 it won't reach those prices for years again, until the next run.
The fundamentals tell a different story against the current hype of DOGE. The pump is here and the dump will be catastrophic for the late comers.
> daily new supply
Yup, the DOGE printer keeps on printing new DOGE. They will be disappointed to know that they missed the pump and fell for the dump.
The single reason why Dogecoin can't reach $50k is that it would imply a $6500 trillion marketcap.
Already at $7.7 it would reach a $1 trillion marketcap, so there's just not much room for price to grow.
The latter would make it bigger than Bitcoin is now, but hey, who knows what will happen. It could go to $10 in a few years or 10 cents. I don’t think anyone can really say.
All I know is it is part of the zeitgeist now in a way only Bitcoin is currently. That is powerful.
Yeah, there was some discussion of "when it gets to USD1", but it was mostly memes and "how do I get (favoured merchant) to take Doge?"
I recall there was a fair degree of talk that it was a good 'instructional' platform-- learn the tools and concepts of cryptocurrency, but you're playing with trivial amounts of money.
But hey, do what you want with your money I guess.
It’s effectively infinite supply.
The scarcity argument is just factually wrong. Bitcoin is not scarce.
Doing a unit conversion doesn't change anything. The limited supply argument is not implying that you won't be able to own fractional bitcoins, it's arguing that the amount of bitcoin you do own with always be a fixed proportion of the total possible supply (in reality it's proportion will grow as people lose access to their keys) so it won't get devalued by the total possible supply increasing. Remember, value is relative to the supply. Looking at your bitcoin in terms of satoshis doesn't change it's value.
No, I’m not.
The supply of Bitcoin is 21 quadrillion satoshi. You are making an arbitrary distinction that an entire Bitcoin is some meaningful thing. I’m not doing a conversation. A Bitcoin is 100,000,000 satoshi. That is just a literal fact.
People want the supply of Bitcoin to be limited because their economic models depend on that false reality. If there is 21 quadrillion of something, it is not scarce. Wanting something to be scarce doesn’t make it scarce.
https://john-tromp.medium.com/a-case-for-using-soft-total-su...